Wish U all a Very Happy Deepavali, May Goddess Laxmi smiles and showers us with wealth in coming year.
- The pain which we are witnessing would be remembered by generations. It would not be easy to forget the fall all our lives. I, in my Eight+ years of experience in Equity Markets have seen many falls and rises be it Dot Com bust or Ketan Parikh, what not? But this is the biggest blow ever witnessed. The only positive one can imagine out of the fall is that it has polished people to such a extent that they can be better people in the market.
- Most of the selling came on Friday after the announcement by RBI that there are no policy decisions taken nor is there any change on the interest rates front. RBI should have cut lending rates atleast by 0.25% to boost the confidence in the market, but it ended up saying inflation remains a concern. Inflation is not the main concern now its the confidence which requires to be brought back into the system. This is one side of the story the other side is most of the selling came again by the FII’s hence even if market would have increased on a rate cut it is FII’s who would have got better rates for offloading their shares. Hence the rates are lower now and hence we would get better rates if interest rates come down now.
- FII’s pumped in around $15 Bn in 2007 and this year till date have sold around $12 Bn hence assuming they sell all there purchases of last year, the levels which prop up looks horrifying. Technicals show clear target for Dow at 7550 – 7260 and for Nifty at 2030 – 1840 which means we should land and take support at 7000 on Sensex and We sincerely feels that that should be the targets in worst case scenario.
- Many people call and send emails daily and the grief in investors voices is clearly visible though not told out by them. Investors felt there’s no end to the bull market in Jan and today they feel there’s no end to the bear markets. Markets turn when people loose hope and its time people start committing money for atleast 3 years time horizon.
Weekly Review for the Week October 27th - 31st October 2008 - Technical View.
We said ‘Technically the market still looks weak and there is no sign of strength so far the next level to watch beyond 9705 is 9325 and 8508 and 2908 on the Nifty front. If the market is UP on Monday then a sharp short covering reaction is not ruled out and that is a BIG if ‘
The market unfolded beautifully as expected. The market came down to 9700, stopped and then cracked 9700 to go to 9325 and then proceed downwards 8508.
Technically the market still looks weak and there is no sign of strength so far but 8508 on the Sensex and 2517 on the Nifty is a strong support to deal with, the crack of which could see the Sensex slide down the next level of 8048 or 2411 on the Nifty. We are now heading into an F&O expiry week and so sharp reactions are not ruled out.
The supports on the way down are at 8508-8408-7613 and resistances on the way up are at 1911
The supports on the way down are at 2517-2411 and resistances on the way up are at 3047
From a trading point of view I would be short but cautious, as sharp reactions are not ruled out
Weekly Trend (27-10-2008 to 31-10-2008) Volatile and Mix
2245/2360/2410/2520 [NIFTY SPOT] 2805/2975/3045/3190/3255.
7610/7735/8065/8405/8485/8565 [SENSEX] 9150/9350/9405/9915/10750.
EXPIRY N SHORT COVERING WEEK AHEAD.
Market View –27.10.2008
Opening is flat to down,
On the Monday
If Nifty Future go to cross the level of 2635 then it can go up to the level of 2695/2795/2840/3025( Sl : Below 2620),
But if Nifty Future do not cross the level of 2620 or after cross this level once gain go to break this level then it can go below the level of 2425/2265/2195( Sl : Above 2640) but its possibility is very less.
NIFTY INTRADAY ( 27/10/2008)
Resistance : 2620/2840/3000/3060/3095
Supports : 2265/2425/2480
SENSEX
Resistance : 9330/9950
Supports : 7940/8320
Technically We may see a Sharp Reversal very soon if 2265 held by Nifty. Taking Nifty Nov 3200 CEs is a gud idea now.1 may start investing.
But Now Market Currently Trading @ 2550. if Nifty Close Below 2265 Then Market Might Touch 2100/1900.But Now Market is in Oversold ZONE.
EXPIRY SPECIAL:
BUY RELIANCE ABV@1000,TGT@1100/1200,SL{STRICT}@975;
BUY EDUCOMP ABV@1825,TGT@1945/2000,SL@1775
BUY UNITECH 25-30,TGT BFOR EXPIRY@42,Strict Sl 25
Short Term Buying
ABAN;;760.........support at 702...if come to 720 or 725...buy for long....tgt 950..
BHEL;1091.........support at 1075..buy with .sl ...tgt 1300..
BANKBARODA...245....support at 233...buy with sl....tgt 265..or more..
AXIS BANK...534.....near to support....530..buy with sl....tgt 650..or more
Intraday
Buy BAJAJAUTO Above @ 470 target 480-510-555.
Buy BHEL Above @ 1100 Target 1120-1170-1235.
Buy BOMDYEING Above @ 165 target 170-185-210.
Buy GAIL Above @ 195 Target 205-220-245.
Buy HEROHONDA Above @ 730 Target 740-760-790.
Buy ICICIBANK Above @ 320 Target 330-355-400.
Buy KOTAKBANK Above @ 300 target 315-360-430.
Buy POLARIS Above @ 40 target 45-50-60.
Buy TATASTEEL Above @ 180 target 185-200-215.
Buy VSNL Above @ 370 Target 380-415-465.
Sell SCI Below @ 115 target 110-105-95.
Sell NTPC Below @ 130 Target 125-115-100.
Sell L&T Below @ 770 target 740-705-630.
Sell GRASIM Below @ 1025 Target 955-870-680.
Sell BOB Below @ 240 Target 225-205-163.
Tata Powers (Last closed = 629 ) Sell with stop loss abv 649 tgt-606-590.
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