- BRFL 279.25 NR7 bar pattern in BRFL. Buy above 280, Sell below 277.
- Punj Lloyd 72.00 Overbought TA Insync in Punj Lloyd. Sell with stop loss above 75.
Tuesday, April 12, 2011
Stock To Trade 13 04 2011
Suddenly, risk appetite has gone away. U.S. Markets, Silver are both falling
As I write this letter on Tuesday, April 12, evening, The S&P is trading at 1310, down 14 points,
about one percent, while Silver on the MCX is at 59,000 which is approx 2000 below Monday’s
highs. I assume that the small declines we are seeing are probably a correction after a sensational rally in Silver, and, a steady up move in Equity. But, for whatever it is worth, we do have a decline! Suddenly, people who were prepared to buy anything at any price became cautious. The message is: All markets correct. This is a theme that has helped me time and again.
When I extend the theme to the Nifty, here is what I get: A correction has started for the Nifty. This decline finds support at 5780 and then at 5550. It appears that 5780 will breakdown when markets open on Wednesday morning, therefore, we can expect a move towards 5550.
For the longer term, the Nifty has seen a rally from 2200 to 6335. This entire up move should
correct. But, we cannot say when this correction will take place. It could have started, or, maybe we will see new highs and then correct. Yet, if I believe that a deeper correction is inevitable, then I am holding back on investing in equity, waiting for lower levels.
about one percent, while Silver on the MCX is at 59,000 which is approx 2000 below Monday’s
highs. I assume that the small declines we are seeing are probably a correction after a sensational rally in Silver, and, a steady up move in Equity. But, for whatever it is worth, we do have a decline! Suddenly, people who were prepared to buy anything at any price became cautious. The message is: All markets correct. This is a theme that has helped me time and again.
When I extend the theme to the Nifty, here is what I get: A correction has started for the Nifty. This decline finds support at 5780 and then at 5550. It appears that 5780 will breakdown when markets open on Wednesday morning, therefore, we can expect a move towards 5550.
For the longer term, the Nifty has seen a rally from 2200 to 6335. This entire up move should
correct. But, we cannot say when this correction will take place. It could have started, or, maybe we will see new highs and then correct. Yet, if I believe that a deeper correction is inevitable, then I am holding back on investing in equity, waiting for lower levels.
Market Outlook 13 04 2011
The new week has begun on a negative note as Nifty slipped below 5800 on Monday. It’s a short
week as we have trading only for three sessions and that may have been the reason for lackluster performance on Monday. The volumes were also on the lower side. Crude continued to trend northwards while IIP data for Feb’2011 too failed to provide any positive surprises. Wednesday also might see a repeat of Monday as markets are again shut for trade on Thursday and on Friday trade opens just as Infosys kicks off Q-4 results season. So, we might continue to slide on account of profit taking. Nifty has support around 5750 but that might just be broken and we might see levels of around 5700. Most of the sectors are witnessing correction but one needs to watch out for IT and Banking sectors as these two could bottom out soon. TCS has support around 1045-50 while Infosys is trading just around its short term support.
Similarly ICICI bank has support around 1075-80 while Axis could find immediate support around 1370-85. Auto counters did see relatively sharp correction on Monday and this trend might continue. Here, early support is likely for Bajaj Auto and Hero Honda while some more correction is likely for 4-wheelers. Nifty has support around 5745-50 and then around 5685-5700 while resistance is likely around 5835-50.
week as we have trading only for three sessions and that may have been the reason for lackluster performance on Monday. The volumes were also on the lower side. Crude continued to trend northwards while IIP data for Feb’2011 too failed to provide any positive surprises. Wednesday also might see a repeat of Monday as markets are again shut for trade on Thursday and on Friday trade opens just as Infosys kicks off Q-4 results season. So, we might continue to slide on account of profit taking. Nifty has support around 5750 but that might just be broken and we might see levels of around 5700. Most of the sectors are witnessing correction but one needs to watch out for IT and Banking sectors as these two could bottom out soon. TCS has support around 1045-50 while Infosys is trading just around its short term support.
Similarly ICICI bank has support around 1075-80 while Axis could find immediate support around 1370-85. Auto counters did see relatively sharp correction on Monday and this trend might continue. Here, early support is likely for Bajaj Auto and Hero Honda while some more correction is likely for 4-wheelers. Nifty has support around 5745-50 and then around 5685-5700 while resistance is likely around 5835-50.
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