Monday, March 07 2011: Market Update

Market opened on the negative note at 5491 and selling intensified as the day progressed. Nifty made an intraday low of 5408, but in the last one hour of the trade some recovery was witnessed. Nifty has closed near 20 day EMA and also in today's trade Nifty took support at 50 % retracement level i.e. 5417 of up move from 5232 till 5608. Further fall in nifty likely to be witnessed only if Nifty trades below 5400 level. In the coming trading session, it is likely that nifty will take support near 5438-5420 level. On the upside, if nifty trades above, 5494 then we can see nifty testing 5530-5550 levels.

February 19 2011, Market Update

The Nifty snapped its five-day gains and closed on Friday at 5,459, down 88 points or 1.58%. Big corporates being questioned in the 2G scam, making the investors losing confidence. Climbing interest rates locally, this coupled with China raising reserve requirements, might trigger FIIs to pull out money from emerging markets. The Nifty closing with a bearish candle on Friday's trade also gives a sign of worry. If the index in next couple of session sustains above 5,450 it could find next resistance at 5,550. On the downside 5,400 is a good support. Investor should adopt caution in the near short term.

February 05 2011, Market Update

The 50-share NSE Nifty tanked 131 points or 2.37%, to settle at 5,395.75. Again for the second consecutive day,  the Indian markets behave opposite to the global markets. Majority of the global indices closed the last day of the week in green. Higher interest rates, expected decline in growth of the manufacturing sector are causing concerns for the investors. The market in the yesterday's trade closed below 5,400, with bearish engulfing candle formation, indicates likely downside. Reiterating, the next level to watch out for is 5,300, if the Nifty slips below this level, we could see further downside. Traders are recommended to be cautious. 

February 03 2011, Market Update

After five days in red, the Nifty opened positive on Wednesday, but led by selling pressure during second half of day, ended flat. Again today morning, the market gave a flat opening indicating indecision among the traders. On the daily charts the formation of the small bearish candle within the large bearish one indicates the Nifty likely to take support at low of large bearish candle (5,402). If the index slips down below this level then we can witness further downside. However, on the upside the Nifty might face resistance at 5,495. The traders should watch out these level before making trading decisions.

February 02 2011, Market Update

Despite recovery being seen across the global markets, the Nifty ended in red over concerns that inflation and rate hike would dampen corporate earnings. The Nifty shed 88 points to close at 5,417, led by Tata motors, BPCL and Jindal Steel which declined by more than 5 %. The Nifty trading in oversold zone give signs of bottom fishing for the investors. However, the downward bias remains intact until some positive news flow comes in. The immediate levels to watch out are 5,400 and then 5,300. However, on the upside 5,450 will act as key resistance.

Friday, January 28 2011, Market Update

On the last day of the week the sell off across the market made the Nifty decline by 92 points to close at 5,512. During the intra-day session the Nifty did slipped below the September 2010 breakout,  but managed to close above that level (5,500). On the technical charts we could see now first instance of lower low and a lower high in Nifty, which is a sign of worry. We could see further downside of may be 6-8% from current levels. The next level to watch out are 5,500 and 5,400. I recommend the traders to adopt a cautions approach, but these dips can definitely be used for fresh entries in blue chips for long term.

Thursday, January 20 2011, Market Update

Right from the outset of the trading yesterday, the Nifty was struggling for  a up-move. During later part of the day the indices witnessed a sharp fall and closed down 33 points at 5,691. The traded volumes were higher compared to the previous session, which is a negative indicator for a bearish session. As mentioned in earlier posts, the index trading just at the support, so the watch-out point from here would be the 200-day MA (5,600). So, if the Nifty breaches 5,600, we could see more downside.The global markets also in read before the India opens, does not provide a breather for us to recover.The trader should adopt cautious approach in the near short-term.