Market View for Monday 08 Aug 2011

BSE Sensex 17305.87

Major Support 16470 – 16000

Major Resistance 17830

NSE Nifty 5211.25

Major Support 5000 – 4935

Major Resistance 5372

The markets opened a big down gap last Friday. The volumes recorded were also very high. This basically tells us that the supply has clearly overpowered the demand. With a bearish trend reversal pattern on the indices with confirmation the outlook on the market will be bearish for the medium term. Yes, we will see relief rallies that we will witness but these rallies should be sold into. For today supports will be seen at 16470 and 5000 on the BSE Sensex and the NSE Nifty respectively.

Market View for Thursday 04 Aug 2011

BSE Sensex 17940.55

Major Support 17859 – 17804 – 17482

Major Resistance 18005 – 18283 – 18440

NSE Nifty 5404.80

Major Support 5378 – 5343 – 5252

Major Resistance 5422 – 5496 – 5551

The markets opened with a gap down opening and traded the day sideways in a narrow range. The day saw the markets swinging up and down to finally close indecisive with a doji formation on candlestick charts. For the day expect the markets to rebound if they open with a gap down again. Wait for the first 15 minutes to trade so as to judge the direction of the move. If the markets open with a gap up opening then they would face selling pressure. As of levels watch resistance for the Sensex @ 18005 and for the Nifty @ 5422 levels. On the lower side supports should be seen @ 17859 for the Sensex and 5378 for the Nifty. Hold a low profile for the day…

Market View for Wednesday 03 Aug 2011

BSE Sensex 18109.89

Major Support 18037 – 17804 – 17627

Major Resistance 18283 – 18440

NSE Nifty 5456.55

Major Support 5433 – 5343 – 5252

Major Resistance 5496 – 5551

The markets gave away all the strength witnessed on Monday. This was amidst a lot of negative news flow in the markets on the domestic as well as the international front. The current closing suggests that the direction for the markets for now is down. With resistance @ 18283 – 18440 for the Sensex and 5496 – 5551 for the Nifty the markets are expected to trade weak. Opportunities in form of day trades and shorts should be capitalized. On the lower side supports are seen @ 17804 for the Sensex and 5343 for the Nifty. Weakness is here to stay for now. Be an opportunist in the market and it will earn good returns.

Market View for Tuesday 02 Aug 2011

BSE Sensex 18314.33

Major Support 18219 – 18131

Major Resistance 18440 – 18571 – 18708

NSE Nifty 5516.80

Major Support 5486 – 5453

Major Resistance 5551 – 5588 – 5631

The markets opened with a gap up opening amidst news of a solution on the US debt issue. Our markets after opening up witnessed pressure which made them move up and down eventually closing with a spinning top formation on candlestick patterns. This formation signifies indecision with players waiting for the actual trigger. For Tuesday market players would be all glued to the American markets busy interpreting the announcements which come out. This is an immediate trigger and a direction decider for the markets. As of levels watch support for the Sensex @ 18219 and for the Nifty @ 5486 levels. On the higher side resistance comes in @ 18440 for the Sensex and 5551 for the Nifty. The indices would decide their direction on breach of any of the above levels. Scrip specific action will continue in the markets.

Market View for Monday 01 Aug 2011

BSE Sensex 18197.20

Major Support 18131 – 17314

Major Resistance 18475 – 18753 – 18944

NSE Nifty 5482.00

Major Support 5453 – 5195

Major Resistance 5557 – 5633 – 5702

The RBI policy breaks the momentum in the markets. To add to it the Lokayut report on illegal mining in Karnataka leads to players getting cautious about a few companies being named which lead to further selling in the markets. All in all the last week was a bad time for the markets. Technically this sell off came in when the markets were trying to breach past the resistance from the falling trend line joining all the recent tops from November 2010. It is almost 9 months that the indices have not moved much. They continue to trade in a range of 10%. The indecisiveness is clear with the markets making lower tops and higher bottoms in the last 7 months. This time the direction of the markets is expected to be decided when the indices reach the earlier bottoms. If they breach the earlier lows then that would mean weakness and bears gripping the markets. For the markets to get into a strong hold of bulls they need to break past the trend line resistance which now has gained a lot of importance with the current formation. As of Technical levels watch resistance for the Sensex @ 18475 and for the Nifty @ 5557 levels. Below this the indices would remain under pressure and try and test supports @ 17314 for the Sensex and 5195 for the Nifty. Individual scrips will continue to shine and therefore it is advisable that investors hold a scrip specific view…

Market View for Friday 29 Jul 2011

BSE Sensex 18209.52

Major Support 18188 – 18132 – 18022

Major Resistance 18327 – 18571

NSE Nifty 5487.75

Major Support 5475 – 5434 – 5407

Major Resistance 5512 – 5588

The markets opened with a gap down opening and continued to buck downwards under pressure of the RBI policy overhang. The closing is below the current range and therefore is a very weak sign for the markets. Friday being the last day of the week would be an important day for the markets. If the markets have to buck this trend then that could happen immediately in a day or two. Weakness is expected to stay till the indices trade below 18327 for the Sensex and 5512 for the Nifty. On the lower side the indices could test supports @ 18188 – 18022 for the Sensex and 5475 – 5407 for the Nifty. Individual stocks may continue to move their own way and therefore it would be better to hold a scrip specific view.

Market View for Thursday 28 Jul 2011

BSE Sensex 18432.25

Major Support 18358 – 18326

Major Resistance 18571 – 18708 – 18898

NSE Nifty 5546.80

Major Support 5521 – 5496

Major Resistance 5588 – 5631 – 5688

The markets continued to trade under pressure from the day before yesterday’s announcements made by the RBI governor. At current levels the indices have approached good support levels. If the indices respect these levels then the markets would continue to stay in strong hands. If these levels are cracked then that would suggest that we should get ready for a correction in the immediate short term. As of levels watch supports coming in @ 18358 – 18326 for the Sensex and 5521 - 5496 for the Nifty. On the higher side resistance should be watched @ 18571 for the Sensex and 5588 for the Nifty. Hold a scrip specific view…