Market View for Friday 21 Sep 2012

Index Levels BSE Sensex 18349.25 | NSE Nifty 5554.25 Major Support 18292 – 18284 – 18062 | Major Support 5534 – 5528 – 5447 Major Resistance 18443 – 18580 – 18619 | Major Resistance 5581 – 5620 – 5631   View The markets opened with a gap down opening and continued to trade choppy. All this amidst the political turmoil happening with the government’s existence. As we get into trade today we need to closely watch supports @ 18292 for the Sensex and 5528 for the Nifty. These are important supports for the markets cause if these levels are broken then the indices could sell off big as they have a gap to fill. On the higher side resistance should be watched @ 18443 and 5581 for the Sensex and the Nifty. Between these levels expect the markets to trade choppy. Traders should enter trades only if the nifty moves either above or below these levels. Investors should continue their scrip specific approach. Happy Investing & Happy Educating!

Market View for Tuesday 18 Sep 2012

Index Levels

BSE Sensex   -   18542.31
Major Support         -   18480 – 18284 – 18062
Major Resistance   -   18619 – 18715


NSE Nifty   -  5610.00
Major Support        -     5585 – 5528 – 5447
Major Resistance  -     5631 – 5652




View

In the last 9 days the Nifty has witnessed a move from 5200 to 5600 levels. This was the fastest move in the last many months. Yesterday we witnessed a choppy trade with consolidation happening. Some amount of profit booking too was witnessed which is very natural for the markets to go through after witnessing a big rally. the consolidation and the type of move seen yesterday could continue today again with the markets staying choppy and corrective. The cues coming in from the global markets are indecisive. As of levels for today watch markets staying range bound between yesterdays high and low levels. Resistance for today would come in @ 18715 for the Sensex and 5652 for the Nifty. On the lower side support should be watched @ 18480 for the Sensex and 5585 for the Nifty. For today traders should avoid trades to holding low profile. Investors can take a scrip specific view but again with a low profile. Happy Investing & Happy Educating!

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!