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#27 Nifty Update

NIFTY today was unexpected. Dow and foreign markets closed yesterday by almost a 1% or more and it was expected that our markets will react positively to it but it couldn’t. In the morning market opened almost flat and was as boring as Radio Jockey’s commentary because you feel irritated whenever you listen them while your favorite song is been played.  Almost all the frontline stocks were negative. Today, on the later hours of the market, it broke our Rectangular consolidation pattern to close at 5447 which is our crucial support (5442) for Head and shoulder.  RSI , Stochastic and MACD all are pointing towards the bear phase for the market. All the moving averages were broken down to close below them. Tomorrow RBI policy is a major concern for the markets momentum. I feel market has already discounted 25bps hike so if the same is announced the market may react positively to it otherwise we might see our next crucial support at 5360 which is projection on the breakout of rectangular pattern. On the stock side today, SBIN and other banks were discounted in favor of policy today. TATA MOTORS was like Yusuf Pathan who played extremely good but not good enough to bring NIFTY positive as he could not win series for India against SA last year with his blistering 120 in finals. So strategy for NIFTY would be wait and watch for the crucial levels 5360 or completion of Head and Shoulder at 5609 (neckline) as the graph above.
NIFTY levels for 16th June:-
R-5482  S-5400
R-5520  S-5386
R-5575  S-5360
R-5609  S-5300

#26 Nifty Update

NIFTY opened on positive node as global markets were all almost positive. But surprisingly Reliance Industries was the loser like our Indian Cricket team in yesterday’s ODI. NIFTY made low at 5484 near to my support of 5482. Yet NIFTY has to breakout on the rectangular formation between 5482-5609 on closing basis. But on other side I am more biased towards the formation of right inverted shoulder by NIFTY’s current movement. As I am mentioning since few reports, inverted head and shoulder is about to break-out at 5609 levels. RSI and MACD has almost started pointing towards the bull phase. For the frontline stocks TCS and SBIN seems to be good buy while be cautious on Reliance, Hindalco and Maruti.  So, I still hold my strategy of buying NIFTY on dips with strong SL of 5442.
NIFTY levels for 15th June:-
R-5525                  S-5482
R-5558                  S-5442
R-5603                  S-5400
R-5650                  S-5483

#25 Nifty Update

NIFTY opened in negative but recovered at the end by almost 60 points from the low. NIFTY made a low at 5437 (almost at 5442 which I mentioned in my last 7 reports). Now NIFTY daily chart has three major formations in the process which could be confirmed in tomorrow’s trading session. Firstly, a rectangular formation breakout at 5482 level or 5603 level on closing basis. If the breakout is on downside then second formation is inverted head and shoulder which has a support at 5442. And if we see the breakout of 5442 then a third formation which is a rounded top could be formed with the support at 5356-5383 levels as marked by bold line in the graph. Therefore if NIFTY breakouts on downside then 3 formations has chance to be formed up while on upper side we may see new rally over 5603 level. So now strategy will be to wait and watch where NIFTY takes support and then buy at the levels.
NIFTY levels for 14th June:-
R-5503                  S-5442
R-5540                  S-5400
R-5560                  S-5373
R-5603                  S-5356

#24 Nifty Update

NIFTY opened flat as the SGX NIFTY was flat in the morning. NIFTY today was playing boring like a 50 over match in West Indies. It closed around 5521 just a minor change regarding the last close. Major news today was of MTNL and HCL-Infy who had made a cartel to increase bid price in CWG broadcasting rights by almost 400 crores where as on Political front Baba Ramdev has declared to create an armed force of 11000 people if the government didn’t agree to his demand. On the stock side everything was almost flat while Hero Honda was down again and made low at 200 DEMA at 1736 while LT and Reliance were few from the gainers today. Still market is yet to decide its of path movement. I feel market is playing range bound between 5482 to 5609 which forms a “RECTANGULAR FORMATION”. Breakout at the either level will decide the further run of the market. But my instinct says it will be BULL Market so Buy NIFTY with short term SL-5482 and Long term SL-5442.
NIFTY levels for 10th June:-
R-5550  S-5482
R-5575  S-5442
R-5609  S-5405
R-5650  S-5375

#23 Nifty Update

NIFTY was down today by almost 30 points at 5526. When it opened all the technical indicators were so tempting to make a investor buy NIFTY but it just touched yesterday’s closed and returned back to where it opened. MACD is still strong on NIFTY to buy with a SL-5442. NIFTY is yet to validate inverted head and shoulder with the neckline at 5609. Auto industry will see fall in sales due to hike in fuel prices but TATA Motors seems attractive from the technical side. IT Sector is gaining some momentum as we could see INFOSYS and TCS consolidating at its current level. On the other side global cues are negative which is affecting our market index rather than domestic news.  Still the call on NIFTY is to buy and for the stocks its sector specific and more precisely stock specific.
NIFTY levels for 9th June:-
R-5550  S-5503
R-5570  S-5492
R-5609  S-5442
R-5640  S-5401

#22 Nifty Update

NIFTY opened flat and as expected it took resistance at 5571 (I mentioned in my last report). It was a slow and steady win for NIFTY and Rohit Sharma’s innings yesterday which gave steady win to India over West Indies. Now NIFTY has caught some bullishness to face resistance at 5609 which is a crucial level. 100 DEMA and 200 DEMA are converging around the same 5609 level which is also a ought to be Neckline for inverted “head and shoulder pattern”. Breakout of that level will be crucial to reach the level of 5730-5750 in near term.  RSI and stochastic are approaching overbought level but MACD line is about to cross 0 line towards upside to give strong BUY for NIFTY for long term .INOSYS was one of the large cap which out performed together with RELIANCE. Both stocks are at attractive price for long term together with SBIN which didn’t have much of movement today.
NIFTY levels for 8th June:-
R-5571                  S-5537
R-5609                  S-5502
R-5662                  S-5472
R-5700                  S-5442

#21 Nifty Update

NIFTY back on track. NIFTY opened in red on global cues but recovered at the end. It bounced back from crucial level of 5475. Now we could see uptrend for short term till 5619. If it crosses 5619 level then it will validate inverted head and shoulder and we could see level of 5700 there on. LT and Infosys are best buy at these levels. Baba Ramdev is the focus in the media these days.  Govt. is in dilemma what action to take because it may affect its image.  So still strategy is to buy NIFTY with SL-5442.
NIFTY levels for 7th June:-
R-5571  S-5475
R-5609  S-5442
R-5650  S-5400
R-5700  S-5378

#8 Stock Update: Weekly picks (6th-10th June)

A dragon fly Doji on weekly chart was confirmed by a strong bull candle last week. Stock Price crossed 100 and 200 DEMA last week and closed a way above it. RSI crossed 50 level mark suggesting a strong buy. Whereas stochastic is suggesting to Buy stock on dips.
Buy on dips
Stop Loss
A Bullish Engulfing pattern on preceding week chart was confirmed by a bullish candle last week. Daily chart have witnessed price closing above short term moving averages. MACD has shown a some bullishness and suggesting to  buy on dips.

Buy on dips
Stop Loss
A bullish Hammer on the weekly chart was confirmed by a bull candle last week. Price on daily chart closed above all the short term moving averages. MACD together with RSI at 50 is suggesting a buy for the stock for short term as well as long term holdings
Stop loss
Bullish Tweezers bottom was confirmed buy a bull candle on the weekly chart. On Daily chart price crossed and closed above all the moving averages including 100 and 200 DEMA last week. MACD crossed 0 line signaling buy with RSI still at 63 suggesting a strong Buy.

Stop loss
Bullish Tweezers bottom in the bearish trend on weekly chart is suggesting a reversal in trend for the stock. On a daily chart a small dragon fly doji was witnessed to support the bull run. Price closed above all the short term moving averages while RSI was at 51 suggesting a bull phase.
Stop Loss
A bullish hammer in down trend was confirmed by bullish tweezers bott
om pattern on weekly chart for the bullish trend of the stock. On daily chart price closed above all the short term moving averages while MACD is about to cross 0 line to suggest a strong buy. RSI is strong at 54.
Buy on Dips
Stop loss
A bullish piercing pattern on weekly chart was confirmed by a long bull candle for the reversal. On a daily chart Inverted head and shoulder was confirmed by price closing above the neckline being at 140 level for 3 days. MACD is about to cross 0 line while RSI is at 55 suggesting a buy.
Stop loss

#20 Nifty Update

AS expected NIFTY opened positive and resisted near 5600 level which was also mentioned in my last report. SGX Nifty was almost flat at the opening. NIFTY was in red which was some profit booking. Now it seems that market may test the levels of 5442 to confirm our inverted head and shoulder pattern. ADAG was rocking as Anil Ambani was out of the 2G Scam. All its scripts were up by around 5%. Today we also had an AGM of Reliance Industries, but nothing exceptional was mentioned by Mukesh Ambani. Investors were expecting news regarding the telecom sector company which they acquired last year. On Monday we might see some upward movement initially but on downside we may see levels of 5442 if it isn’t closed above 5613.
Nifty levels for 6th June
R-5567                  S-5507
R-5600                  S-5492
R-5617                  S-5442
R-5629                  S-5400