The Asian markets are in no good mood to move up can spread their shadow on our markets. The Nifty is good above 2915 level and has resistance above 2950 level.
The RIL may face resistance at 1405-08 level and will become weak below 1383 level to touch a low at 1341-43 level. The ONGC one of the leading counters of Nifty has suddenly got support with the 1200 cr IT case facing resistance at 720 level will become weak below 693 level will touch 671-73 level. The immediate support levels will hold as the markets are enjoying the Bulls support.
The two days consequent bear hammering on Relinfra right from the 593-96 level brought it down to 527 level could recover to 542 level. The scrip shall not trade below 511-14. The markets may re-rate RIL and the fertilizer companies with the gas supply.
Yesterday star performers like ICICI and Relcap may continue to get Bulls support. The ICICI is good above 421 levels but it has resistance at 447-46 level. The Relcap has resistance at 432-35 region but is good above 411.
The beaten down stocks made good recovery, be it ZEE, EDUCOM or MC-DOWELL. Yesterday ZEE lost nearly all the gain made in the previous session.
Wednesday, February 11, 2009
Sunday, February 8, 2009
The hope beneath …..
The markets are expecting some miracle to save from the grave situation. The fast deterioration of the confidence at the future is the main concern. This is more worrying in India than in US. The world has accepted the fact that the US is in recession that to in deep but the un conventional accenting facts that are fast emerging is that the future of the emerging markets are also becoming bleak.
The Indian authorities are confident that the growth rate is at 7% but the fall in the commodities and the real estate sector is hurting the investment proposals. The auto sector is reeling under demand contraction is a classic example of slow down in economy. When there is slow down in goods vehicles is that there is less produce to transport and no demand to export or import.
The no industry not impacted by the demand slow down but the positive signs of price movement can be felt in the same transport sector- the rise in the prices of GE Shipping, SCI, Maruti, Hero Honda and the slight up ward movement in the commodity sectors- ACC, Grasim, Ultra tech, Sail, and in Tata steel are the early signs of knowlegible HNI-people/sources entering to garner the large chunk at deep discount.
The pure technicals show that the markets are at no where movement but the violence is deep during the intraday isnot a good sign for an early Bull move. The bears are determined to short at every rise is helpful to scale new highs in a Bull market is a detrimental force while the markets are finding secured bottom to build an up move. But the fact of the life is that these forces strengthen if the markets can stand against the storm.
The Nifty could build a bottom at 2665-85 level in the early part between 21st -27th Jan and then at 2750-2780 level between 28th to 6th Feb-09. During this process the Nifty did not make any trail to cross the 2880 level on closing basis. Incase Nifty can close above the important resistance level due to the positive global cues then it could easily touch the 3050 level.
The Indian authorities are confident that the growth rate is at 7% but the fall in the commodities and the real estate sector is hurting the investment proposals. The auto sector is reeling under demand contraction is a classic example of slow down in economy. When there is slow down in goods vehicles is that there is less produce to transport and no demand to export or import.
The no industry not impacted by the demand slow down but the positive signs of price movement can be felt in the same transport sector- the rise in the prices of GE Shipping, SCI, Maruti, Hero Honda and the slight up ward movement in the commodity sectors- ACC, Grasim, Ultra tech, Sail, and in Tata steel are the early signs of knowlegible HNI-people/sources entering to garner the large chunk at deep discount.
The pure technicals show that the markets are at no where movement but the violence is deep during the intraday isnot a good sign for an early Bull move. The bears are determined to short at every rise is helpful to scale new highs in a Bull market is a detrimental force while the markets are finding secured bottom to build an up move. But the fact of the life is that these forces strengthen if the markets can stand against the storm.
The Nifty could build a bottom at 2665-85 level in the early part between 21st -27th Jan and then at 2750-2780 level between 28th to 6th Feb-09. During this process the Nifty did not make any trail to cross the 2880 level on closing basis. Incase Nifty can close above the important resistance level due to the positive global cues then it could easily touch the 3050 level.
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