Monday, February 28, 2011
Todays Sentence
Never establish a position in the market until you see the potential for a large profit as opposes to a small loss. – Conard Leslie
Stock To Trade 1 03 2011
- Cairn India :- Insync is moving up in Cairn. Buy with stop loss below 335.
- Renuka Sugar :- NR7 bar pattern in Renuka. Buy above 74, Sell below 70.50.
Two consecutive DOJI pattern.
Nifty Watch:- Today Nifty opened at 5335. As budget is coming today the Nifty consolidate in staring period. During the day Nifty made a high of 5498 with a gain of 163 points to its open. From this level nifty falls quickly and made a low at 5310 with a decline of 188 points to its day high. Finally nifty closed at 5343 with a gain of 8 points to its today’s open.
Nifty made another Doji today. This means that the uncertainty is still there in the mind of the bears.
Trend:- The short term trend remains up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. TA Insync(55-5) is above the level of -45 and moving down. This indicator is suggesting a downside momentum.
Summary:- Today’s market saw a volatility in the trading. Market trading between the ranges of 180 points and closed near to its open. This suggests that the market is in uncertainty. This also indicate that a big move about to come.
Nifty made another Doji today. This means that the uncertainty is still there in the mind of the bears.
Trend:- The short term trend remains up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. TA Insync(55-5) is above the level of -45 and moving down. This indicator is suggesting a downside momentum.
Summary:- Today’s market saw a volatility in the trading. Market trading between the ranges of 180 points and closed near to its open. This suggests that the market is in uncertainty. This also indicate that a big move about to come.
Market Outlook FOR 1 03 2011
Union Budget was presented in the Parliament and the markets witnessed a see-saw movement post Budget. It rallied sharply immediately after the Budget speech and Nifty was up more than 3% at one point of time. As the current Budget was low on expectations it seemed more like a relief rally. But, as the Budget lacked any big bang announcements, the higher levels once again attracted selling and Nifty lost almost all its post speech gains in the last 60 minutes to close with a marginal gain of only 30 points. The stocks or sectors that gained post Budget were the ones that were expecting some negative announcements and the absence of such negative measures provided a leg up to these sectors. Cases in point are Auto stocks and tobacco stocks. The banking or financial stocks were also amongst the gainers as FM pegged the fiscal deficit at just
around 4.6%. So, the prominent gainers were ITC, IDFC, TVS Motors, IOB, Central Bank, Reliance Cap, Canara Bank, Federal Bank, M&M and Maruti. Coal India was the biggest gainer as the Coal prices were increased 30%. But this measure had a negative fallout on the user sectors and power and cement stocks reacted negatively. There were some measures to boost infra spending but nothing much to enthuse the markets. Sesa Goa was impacted negatively as 20% duty was imposed on iron ore exports. So, the list of losers had stocks like BGR Energy, Patel Engg., Sesa Goa, Jain Irrigation, Mundra Ports, Pantaloon, Educomp, Reliance Infra, Ambuja Cement, TV18, Ranbaxy and JP Industries. So, the Budget has come and gone and has largely failed to have much of impacts on markets. We are back to looking at Global cues and Crude oil movement. But, since there were no or muted expectations market is unlikely to react much on the lower side. We could see a drop in volatility and perhaps a sideways movement between 5200 and 5600 for the short term. Some base building is likely in certain banking/financial stocks. The Auto counters too could consolidate around current levels before moving higher. But, broadly nothing much seems to have changed technically for the overall markets and the bigger sectors. Nifty must trade above 5375-85 consistently to be in the neutral territory, at least 5250-60 is likely to provide support in the near term.
around 4.6%. So, the prominent gainers were ITC, IDFC, TVS Motors, IOB, Central Bank, Reliance Cap, Canara Bank, Federal Bank, M&M and Maruti. Coal India was the biggest gainer as the Coal prices were increased 30%. But this measure had a negative fallout on the user sectors and power and cement stocks reacted negatively. There were some measures to boost infra spending but nothing much to enthuse the markets. Sesa Goa was impacted negatively as 20% duty was imposed on iron ore exports. So, the list of losers had stocks like BGR Energy, Patel Engg., Sesa Goa, Jain Irrigation, Mundra Ports, Pantaloon, Educomp, Reliance Infra, Ambuja Cement, TV18, Ranbaxy and JP Industries. So, the Budget has come and gone and has largely failed to have much of impacts on markets. We are back to looking at Global cues and Crude oil movement. But, since there were no or muted expectations market is unlikely to react much on the lower side. We could see a drop in volatility and perhaps a sideways movement between 5200 and 5600 for the short term. Some base building is likely in certain banking/financial stocks. The Auto counters too could consolidate around current levels before moving higher. But, broadly nothing much seems to have changed technically for the overall markets and the bigger sectors. Nifty must trade above 5375-85 consistently to be in the neutral territory, at least 5250-60 is likely to provide support in the near term.
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