Category Archives: Nifty

#34 Nifty Update

NIFTY was a “DOUBLE DHAMAAL” with 2 consecutive bull trading session. This wasnt expected by the market players but as i said in my previous reports market resisted near to almost 5570 levels which is a 200 DEMA. I had even asked you all to buy NIFTY around 5320 levels with a target of 5556 which is achieved today. NIFTY closed around 5530 which is a positive sign but technical speaking tomorrow you might expect some downside movement. On Friday NIFTY had opened with a gap up of 20 points which market has to still fill up and so expect market to take support around 5300 levels. A probable inverted head and shoulder is in formation with 5600 as a Neckline but before that it should come down to levels of 5330 to make it a valid formation. Diesel and LPG price hike was taken positively by the investors as it was a necessary to control inflation. Government reduced excise on diesel by rs.2.6ltr and 5% was reduced on custom duty of Crude oil but still government will make profit worth of Rs. 21000cr which is a good relief on fiscal side. Now the short term strategy will be sell on rise with target of 5340 with a Stop loss on closing basis of 5586.          But in market rumors are spreading that in next 2 days market is expected to touch 5720. So be CAUTIOUS!!!!
NIFTY levels for 28th June:-
R- 5567            S-5500
R-5582             S-5476
R- 5600            S-5442
R-5650             S-5400

#33 Nifty Update

NIFTY was unbeaten with 151 points to close around 5471. As i had been saying about the crucial level of 5350, today the close has been above that level which is a good sign for the market. Major reason for the spike was relief of the Greece Debt by EU leaders. Commodity prices have seen sharp fall which is a good sign for the Q3 margins of the company. Today EGoM is gonna meet up for the Hike in diesel prices
which gave all Oil Companies a hike of around 3% on dalal street. On the other side, telecom department is working on reducing circles of operation from 22 to 4 or even 1 which means consumer wont have to pay any roaming charges and all INDIA will be local. Bill is expected to be passed by end of this year. Now, NIFTY seems to catch momentum for the up move. Our strategy for long term will be Buying NIFTY on Dips with a SL of 5356.

NIFTY levels for 27th June:-

R-5504  S-5424 
R-5570  S-5381
R-5609  S-5356
R-5667  S-5300

#32 Nifty Update

Bulls were on the winning edge in the crucial match against bears today. Rahul Dravid , the wall of India saved team against WI yesterday while “wall of stock market” i.e., Reliance Industries saved
dalal street with 2.92% not out. Bulls won the match by 41.70 points to achieve the target of 5320. A Bullish engulfing pattern is witnessed i.e., a long bull candle covered previous bear candle
completely. Is this the end of the bear run??? Nope…We cannot confirm unless the closing is over 5350. A probable upside head and shoulder has been formed on daily chart. TATA Motors, TCS and Hero
Honda gave some support to the move of NIFTY. GTL is one of the most talked stock on dalal street due to its 80% decline in last 3 session but still I suggest “AVOID NEW POSITIONS” in the stock. There are
almost 50 companies which includes Hero Honda, Shree Renuka sugars, Alok txt, Tata Global , tata Power and many more whose more than 25% shares are pledged which is weak signal for new positions for the same. I will try to provide with list of those 50 stocks in a day or 2. So, Strategy for NIFTY is wait and watch until the close is 
above 5350 or below 5200.
NIFTY levels for 24th June:-
R-5356  S-5276
R-5400  S-5250
R-5442  S-5200
R-5482 S-5176

#31 Nifty Update

Today Bulls and Bears were playing a test match where the end result was a draw. NIFTY closed almost flat at 5278 giving no win to either side. All the front line stocks are already so discounted in the current scenario. If we compare the price of each blue chip companies
with its historical prices on previous 5300 level mark they are way discounted. Market today confirmed “rounding formation”, which I mentioned in last 4-5 reports, as it closed for 3rd consecutive day below 5350 which was the neckline for the formation. Midcap was
Sledged by traders today. Titan industries was down by almost Rs.300. Bank sector was a bit less banged. In Telecom sector Idea and Bharti Airtel were slashed by almost 2-4% each and
expect some short term downwards correction in this sector. In NIFTY50, LT, BAJAJ-AUTO, AXIS BANK ,ONGC ,CIPLA and M&M were the few who hold up the market. Daily Indicators Stochastic and RSI have started showing “Possible Signs” of uptrend but all depends on Greece
debt crisis and Mauritius tax Treaty. Many analysts says that RBI is at the peak of its rates and you may not see any further hike in rates which is a relief for banking stocks and the market as a whole. But still stay away from the market unless the closing is above 5300-5350
level for 2-3 consecutive days
NIFTY levels for 23rd June:-
R-5313  S-5262  
R-5350  S-5196  
R-5400  S-5147  
R-5442  S-5100   

#30 Nifty Update

Today NIFTY opened in positive note with some short covering. It was up by almost 60 points but later on it was almost flat. Now we are hearing the case of pledging shares by companies. Yesterday it was GTL while today ORCHIDCHEM pledged its 80% shares and 87% of total is held by McDowell (as per my knowledge, figures may vary). NIFTY is now trading well below all the support levels. Now the major support level is 4786 which is the low of last one year made on 25 may 2010. I will suggest don’t take any fresh position in any stocks because yet the trend is undecided. Strategy for the NIFTY is sell on rise with the SL-5395.
NIFTY levels for 22cd June
R-5338   S-5257
R-5356  S-5196
R-5394  S-5147
R-5449  S-4984

#29 Nifty Update

NIFTY opened in red as it was expected due to the global concerns. Today NIFTY made a low at 5356 which was the most crucial for rounding formation as I mentioned in last few reports. NIFTY is trading in too range bound and intraday traders are not able to get much gain from either side. MARUTI finally got rescue from the strike and production to start soon. Nothing was much in news today which could drag NIFTY up. RELIANC and Infosys were the most banged today from NIFTY 50 stocks while banks like SBIN were fairly good and many intraday traders got handsome returns by buying at low and selling at todays high. Now next two crucial supports are at 5335 (double bottom support) and 5300 (Fibonacci retrenchment support of 61.8% from the 52 week high of last one year). Now its risky to go short at this level because rounding formation is complete and NIFTY might bounce back from crucial supports in intraday. Only go short below 5300. Now the focus will be only on one formation “double bottom “ at 5335.
NIFTY levels for 20th June:-
R-5400  S-5335  
R-5442  S-5300  
R-5482  S-5232  
R-5525  S-5196   

#28 Nifty Update

NIFTY opened down with a gap as all the foreign markets were down by almost 1%. Jobless data in US and Greece president resigning were 2 major news which made foreign markets cry. Highly awaited RBI policy came as per the marketers expectations i.e., hike of 25 bps. This hike was already discounted in the market. After the policy NIFTY was confused as a student answering the Math multiple choice question which way to choose. Reliance on one hand was dragging NIFTY down while SBIN and BANK Index were making the move strong. Ultimately NIFTY broke down our support of 5400 and closed below that. Now our head and shoulder support is breached and confirmation of the same can be only attained if NIFTY tomorrow closes below 5442. But if NIFTY opens negative then we may see levels of 5360 which is a rounding completion or 5320 which may create a possible double bottom. So strategy for NIFTY is wait and watch for the two crucial supports of 5360 and 5320.
NIFTY levels for 17th June:-
R-5449     S-5380               
R-5476     S-5367
R-5505     S-5337
R-5547     S-5300

#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