Market View for Monday 17 Sep 2012

Index Levels

BSE Sensex   -   18464.27

Major Support        -   18082 – 17701
Major Resistance  -   18523 – 19131 – 19811


NSE Nifty   -   5577.65

Major Support        -    5460 – 5343
Major Resistance  -    5629 – 5740 – 5944




View

The last two weeks have been packed with anxiety and action. Finally the government manages to be a bully and go ahead on the policy front. A step which was long awaited by our policy hungry country. These policies are not solutions on all our problems but atleast they mark the start of good work on account of the government. So we start the new week on an extreme positive note. With this also lets hope that the retail participation increases going forward. This move could give more confidence to the FII’s and this could in turn help the foreign fund flow to continue in our markets. Coming back lets look at Technicals using PROFISION charts. Let’s look at three different time frame charts. On the long term chart after making a top at near all time high levels in November 2010 the indices were in a steady down trend making lower tops and lower bottoms till we got a breakout above this level in January 2012. After this the markets made a new top if compared with the earlier top then correcting to take support on the falling trend line confirming the support and also the importance of this trend line. The move then again took the markets up to face resistance on a trend line plotted joining the all time high of Nov 2010 and the high made in Feb 2012. Amidst a lot of pessimism the markets gave us a breakout in the second week of August. The pessimism continued but the markets did not look back. On the extreme short terms charts this move helped the indices to make higher top and higher bottom formation suggesting an extreme positive sentiment. The current close in just near resistances coming in from the highs made by the indices in February 2012. A weekly close above these levels will mark a higher bottom and higher top formation on medium terms charts further suggesting that the markets are heading for all time high levels. For now everything looks good. Today we have the RBI policy and the expectations have now increased due to the initial positive initiative taken by the government. Everybody is expecting a rate cut and an otherwise decision could make the markets consolidate. Irrespective of the decision taken in the RBI policy the overall mood remains positive for now. Investors should hold a scrip specific view and wait for stocks to be picked by Stock Assist. Traders need to be TIGER’s. Happy Investing & Happy Educating!