Today is friday and am sure all bollywood lovers will be waiting for the movie “Agent Vinod” starring hottest couple but market investors watched “Agent Jaiswal” starring other hottest couple, our coal minister and NIFTY. Since two days we are hearing some rumors rather to say media has got hold of some CAG report stating that government has lost some 10.76 lakh crore (approx figure) in allocating coal mines to pvt companies in last 8 yrs. But the “agent” (coal minister) denies the fact that its not the case. This has opened a gate for one more scam in india which might be bigger than 2G scam but nothing yet confirmed. NIFTY is ofcourse supporting the negative news. My last three posts have been suggesting downside and yesterday we got support from the scam rumor. Even the Europe and China’s PMI numbers have came at the lows in last 4 years. This has hurt the global sentiment and we may see some downside or correction for a time being. Technically speaking NIFTY yesterday supported our view for downside. As you can see in the graph , 2cd Sign of bearish engulfing was witnessed while NIFTY is not able to close above short term moving averages (multi Color) since last few weeks. All the indicators, mainly MACD has crossed central line to support downside. Even if we take the last rally from 4600-5570 , we are getting 5100 as a strong support. 5100 has also came out to be a important support on downside channel. So for NIFTY my negative view continous. Strategy would be adding more shorts below 5100 (My first call on short was at 5570 and we added more shorts at 5380)and stop loss in profit which i mentioned at 5470 in last post has been revised to 5400 on closing basis. Enjoy the movie and keep trading 🙂
NIFTY Shorts which i had recommend around 5500 it still holds. Budget didnt bring any surprises for investors rather it was disappointing if you analyze it properly. Pranab “Mukher”gaya apne vado se… He may have announced some good norms for mining sector but for overall public it was disappointment. Now they are thinking of reducing subsidy of fuel which indirectly will bring burden on retail users. Secondly, he has increased duties on vehicles which companies have proposed to pass on to the customer. Thirdly, 10% more increase in food price will bring 30million more indian below poverty line. Fourthly, inspite for easing FII entry it has made more difficult or more clause has been added which will restrict foreign entries. This was just the overview which i understood but if you ask Chartered Accountants they will answer you in more detail. Technically studying the markets, NIFTY was in a downside channel even before budget day as i have marked above. Technically it gave a confirmation on close on budget day that it has more downside. HOW??? You could see that market closed below short term moving averages (multi color) on budget day and next day it opened and traded below that levels. So that was one more bearish side complimenting the channel move. But we may see final confirmation in this week when MACD which is at central line may confirm downside if we see some pressure tomorrow. I still recommend to hold your shorts of 5500 and add more shorts below 5156 which is the 200 SMA. Book loss in Profit on upside if market comes around 5380. Jai Ho
Capital good sector had seen too much ups and down last year but state run BHEL is expected to give some handsome returns to short term investors.Technically stock has taken support at important level of 100 SMA. Few of the indicators have also seen some turn-around characteristic for the stock. We could even notice a “Morning Star” pattern for the stock which is a bullish sign. We recommend to buy BHEL near to 285 (price at 2:40:00pm) with stop loss of 278 and tgts 291/296/301/306
Another bearish candlestick pattern has been witnessed on Tata Motors chart. “Bearish Engulfing” as circled in the attached graph is a bearish signal and we could expect a correction. Stock has outperformed the index in last rally from 180-290 non-stop and it has been resting since making new high. For the first tym after 180 you could notice that stock has closed and trading below all the short term moving averages (blue,yellow and green lines near the high of todays candle). Indicators has been supporting bears since last few days. Chart shown above is of Tata Motors future and we could notice that future has been in consolidation phase during the way downside between 263-276. Now stock could go either way but analyzing the market overall we could be more on the bears side. jaguar has always been a wild card for tata motors and only it can save otherwise be on short side. Important downside targets are 254/249/235/222. Currently at 12:32pm future is trading at 269 and risky players can short at CMP or safe traders can short below 264 with strict stop loss of 276 on future.
On my last 22cd February post on NIFTY, I had given a SELL call on NIFTY around 5586 and had given 5 downside support out of which 4 has been achieved. Now you might be guessing about my todays title: “When Simplicity wins over complexity”..why so??? This is because of the complexity of news and results of election we had in the market but just one SIMPLE and common candlestick gave the sell signal and we could earn almost 400 points on shorts in 15 days. My last post didnt mention about indicators nor moving averages nor pattern it was simply 2 candles that gave a sign. But now we need to take some complexity into consideration to decide the further move. As you could see in the attached graph we had a consolidation phase between 5424-5280 which has been given a considerable breakout today. All the leading indicators have confirmed downside while NIFTY is hovering near to 200 SMA at 5165. NIFTY has given the close below all the short term moving averages. Now the downside support 5090 is a strong support for 3 reasons ..Firstly, it is a channel support line which was a resistance line for almost 1.5 yrs as indicated in yellow color. Secondly, 100 SMA is place at almost same level. Thirdly, if you consider retrenchment levels from last months rally 5090 is an important level. So for those of you have missed to short or have booked profits can again short at 5170 and blindly short below 5090. Levels below 5090??? will be on my next post…Till than Enjoy NIFTY in your shorts as its summer arriving….But keep pants beside..you will need it above 5424 (stop loss).
Bajaj-Auto has seen some resistance near to 1800 levels. We can witness some weakness in the stock. A Double top pattern which is a top reversal pattern has been witnessed on the chart. Stock is trading below all the short term moving averages and all indicators are showing some weakness. it would be a good chance to sell Bajaj-Auto future below 1718 with tgt of 1605 stop loss 1764.