With bad world clues Sensex closed at 15791, down 434 points and Nifty at 4719, down 126 points from the previous close. CNX Midcap index was down 2.47% and BSE Smallcap index was up 3.25%. The market breadth was negative with advances at 126 against declines of 1162 on the NSE. Top Nifty gainers were Tata Power and HCL Technologies while losers were Hindalco, Ranbaxy and ONGC.
We taken support at crucial level of 4680 levels.Equde.com given 4680-4720 levels support last week as main support for market.(See chart of yesterday)5 DMA & 10 DMA moved close to 26 DMA.if there is a bounce back it will be coming tomorrow in special trading day because there will be no institution and FII tomorrow.
HOW TO TRADE IN NIFTY ?
Nifty moving in tight range of 4760-4950 which is good for traders,they can make profits in both sides.Investors don't panic and cut your positions,when caught in wrong trade.See today's and yesterdays market.New investment is not adviced in this level,sell or rally like yesterdays and cover short like today's and go light at end of the day.
In this narrow market don't go for Strategies like SYNTHETIC LONG CALL(buy stock and Buying put)or PROTECTIVE CALL /SYNTHETIC LONG PUT.Can do for intra day trades only because premium is too high in stocks as well as NIFTY.
Lets check WEEKLY CHART OF NIFTY given below
In chart there is three moving average lines (5,10,26 )when ever both 5 & 10 moving average cross over 26 DMA upper or lower side market given a big correction ,Please see chart area with arrow mark .Now look at current nifty position 26 DMA(Daily moving average) is flat and 5 & 10 DMA moving down but didn't cross downwards,market waiting for this to happen,So please wait BEARSs and BULLS.
Another Indicator ADX also showing trend is strong.
In this narrow market don't go for Strategies like SYNTHETIC LONG CALL(buy stock and Buying put)or PROTECTIVE CALL /SYNTHETIC LONG PUT.Can do for intra day trades only because premium is too high in stocks as well as NIFTY.
Lets check WEEKLY CHART OF NIFTY given below
In chart there is three moving average lines (5,10,26 )when ever both 5 & 10 moving average cross over 26 DMA upper or lower side market given a big correction ,Please see chart area with arrow mark .Now look at current nifty position 26 DMA(Daily moving average) is flat and 5 & 10 DMA moving down but didn't cross downwards,market waiting for this to happen,So please wait BEARSs and BULLS.
Another Indicator ADX also showing trend is strong.
Can Expire give a Short covering ?
I think we have to give market some pause,after all its 6 straight days of loss from 5287 to 4833.SGX NIFTY also showed some resistance in 4800 and closed above it.Domestic institutions buying in last two days gives some positive signs to investors.China down 10% from high while we 7.5% so market trending lower tomorrow will be a weekly bearish signal.
NIFTY BELOW 4900 ?
Nifty futures in SGX NIFTY closed below 5000 in two trading days and made low of 4850 today sending strong selling pressure from world indices.China's interest rate confusions and government ordering some bank to increase cash reserve ratio made thinks more worse.S&P degraded Japan from stable to negative effect market in that region.
America's Recovery Plan exposed ?
Last week ,we saw huge selling pressure in all equity market around the world.Many news agencies saying because of Obama's New bank plan and anticipation about China increasing interest rates are reason.I have my doubts in this.Let go back to investigate
After fall of Lehman Brothers US FED done stress test of various bank and told them to take US TAX PAYERS money to bailout most of the big banks like CITI,GOLDMAN SACH etc.. Did they need that amount of money in that time ?Don't forget most bank paid money back with in one year time.How they make this much of money ?So is it a BAILOUT OF BANK HAPPENED OR SOMETHING ELSE ?
I strongly believe that 50-60% of chunk money that called as BAILOUT MONEY is given to bank for trading(i don't think for investing ) in other countries exchanges. Last year BRIC(BRAZIL,RUSSIA,INDIA,CHINA) countries stocks appreciated more,all these countries stock exchanges around 75-100%.Let me Explain how.All developing countries exchanges retraced almost 75% from their highs,Lets take case of India,NIFTY touched a low 2200 approx and Domestic mutual funds didn't had money to do bottom fishing ,FED & US banks used this opportunity to take money from peoples of other countries.They know retailers investors will not jump in early stage of recovery ,when they start thinking to invest market will be around previous high.So Bank will make money and repay bailout money soon ,much talked deficit of US will come down all clean ,When America Recovers World out of Recession.
As simple as that
Why this Fall then ?
Money made by banks are much more than what FED thought ,now they are think what to do with bank,they are still invested not ready to come out ,in same time government's stress test came as Massachusetts Sentor election.Government came to know people slowly moving away from their side because even bank and FED made money from this recover job loss claim are not ready to stop increasing. They know US can't take one more recession with in short span.So goverment want to regulate bank and keep a them away from investing in outside US especially through their investment arms like hedge funds.
If my assumption is true in near week or month Freddie Mac and Fannie Mae will be restructure and FED will tell to invest money in those companies with some guarantee.
FOOTER:From this recession recover rally US made money from other countries.Please remember most investment in India came through QIP route which is so easy to be sold in exchanges.
After fall of Lehman Brothers US FED done stress test of various bank and told them to take US TAX PAYERS money to bailout most of the big banks like CITI,GOLDMAN SACH etc.. Did they need that amount of money in that time ?Don't forget most bank paid money back with in one year time.How they make this much of money ?So is it a BAILOUT OF BANK HAPPENED OR SOMETHING ELSE ?
I strongly believe that 50-60% of chunk money that called as BAILOUT MONEY is given to bank for trading(i don't think for investing ) in other countries exchanges. Last year BRIC(BRAZIL,RUSSIA,INDIA,CHINA) countries stocks appreciated more,all these countries stock exchanges around 75-100%.Let me Explain how.All developing countries exchanges retraced almost 75% from their highs,Lets take case of India,NIFTY touched a low 2200 approx and Domestic mutual funds didn't had money to do bottom fishing ,FED & US banks used this opportunity to take money from peoples of other countries.They know retailers investors will not jump in early stage of recovery ,when they start thinking to invest market will be around previous high.So Bank will make money and repay bailout money soon ,much talked deficit of US will come down all clean ,When America Recovers World out of Recession.
As simple as that
Why this Fall then ?
Money made by banks are much more than what FED thought ,now they are think what to do with bank,they are still invested not ready to come out ,in same time government's stress test came as Massachusetts Sentor election.Government came to know people slowly moving away from their side because even bank and FED made money from this recover job loss claim are not ready to stop increasing. They know US can't take one more recession with in short span.So goverment want to regulate bank and keep a them away from investing in outside US especially through their investment arms like hedge funds.
If my assumption is true in near week or month Freddie Mac and Fannie Mae will be restructure and FED will tell to invest money in those companies with some guarantee.
FOOTER:From this recession recover rally US made money from other countries.Please remember most investment in India came through QIP route which is so easy to be sold in exchanges.
NIFTY FUTURE CLOSED @ 5029
Nifty future in Singapore closed at 5029 with bad clues from market in two continous trading section.Today we corrected 2% in NIFTY and SENSEX and have every change to test support levels of 5020 then 4980
Today Sensex shut closed 17051, down 423 points and Nifty at 5094, down 127 points from the previous close. CNX Midcap index was down 2.51% and BSE Smallcap index was down 2.47%. The market breadth was negative with advances at 165 against declines of 1135 on the NSE. Top Nifty losers were L&T, BHEL and Siemens M&M was only gainer in Nifty.
Today Sensex shut closed 17051, down 423 points and Nifty at 5094, down 127 points from the previous close. CNX Midcap index was down 2.51% and BSE Smallcap index was down 2.47%. The market breadth was negative with advances at 165 against declines of 1135 on the NSE. Top Nifty losers were L&T, BHEL and Siemens M&M was only gainer in Nifty.
NIFTY @ 5157 in SGX NIFTY FUTURES
Nifty made a intra day low of 5157 sgx nifty listed in singapore because of selling pressure in US market.SGX closed at 5170 levels below around 50 points from settle prices of 5114 in SGX.Tomorrows opening on our market depend can be around those levels.US investors are concerns that tighter lending rules in China could endanger an economic recovery.Financial and IT were worst hit in US,now crude trading below $78 ,let see what will hit us tomorrow.
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