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.