Saturday, March 12, 2016

Weekly Review - 14th March, 2016

Dear All,


Foreign institutional investors (FIIs) have taken a big plunge after a long time by making heavy purchases. Since the Union Budget, they have purchased stocks in the upwards of Rs 8,500 crore.

The rupee too appreciated to everyone's surprise; however, the strength vindicates the robust fundamentals of the Indian economy. Even RBI is expected to throw its weight behind accelerating the growth of the country by reducing the cost of fund in the economy.

The combined steroids in the form of policy initiatives, lower commodity prices, currency appreciation and the expected reduction in interest rates would be a formidable force to race ahead, despite the not-so-rosy business dynamics across the globe.

The velocity of the upward move has slowed down, indicating that the corrective phase of the market can begin soon. Stocks in the realty, metals and infrastructure sectors are having some traction and will remain volatile for some more time.

The announcement of threshold import price for the steel for six months is attracting the bulls to the metals counter. The threat of cheap Chinese imports is taken care of at least for a while.

The ease of doing business in the oil and gas sector by giving companies pricing freedom will go a long way in the exploitation of the domestic reserves. Many oil exploration and extraction ancillaries, too, will benefit from the move as a lot of incremental demand from the marginal fields will also emerge.

The mood of the market has clearly changed from utter despair to a state of expectation. The shift in sentiments is visible across industries. The extreme bullish sentiment see in the short term will lead to some amount of correction in the market.


>>> Nifty Weekly Chart <<<

>>> Click the chart to see on full screen <<<

Above give chart is Weekly, Most complicated correction, I hope. Since its complicated, my counting errors regretted, I hope the current rise is for wave X, may find its resistance near 7540 or 7580. Please refer daily chart for more details.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Price on crucial junction. 7540 & 7580 must cross for a rally till next resistance 7760. RSI on the edge of break out. Financial Year End and flow of news from international front may fluctuate price with lot of volatile. Fluctuation on Nifty Futures Premium and Discount may erode Option Premium on both sides. Stay caution on either side is advisable.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

7540 must cross, else price may get support from the line as shown on chart.

>>> Bank Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Last week - Bank Nifty struggling near 15240 and 50DMA. Next Resistance at 15775.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

If Resisted on trend line as shown on chart, Expect price to correct till support line. Moving Averages in favour of bulls.


>>> Apollo Tyre - Posted on 09th March, 2016 <<<

>>> Click the chart to see on full screen <<<

Posted last week - Price facing resistance near 175 and We have entered short on apollo tyre for a correction. See what happened.

>>> Apollo Tyre - Profit Booked <<<

>>> Click the chart to see on full screen <<<

Booked one more profit of Rs.15000/- We may or may not re-enter as per next week movement.

>>> CEATLTD - Posted on 10th March, 2016 <<<

>>> Click the chart to see on full screen <<<

Wrote about CEATLTD - that Price resisted on the top of the channel. See what happened.

>>> CEATLTD - Happened <<<

>>> Click the chart to see on full screen <<<

Price if breaks below 1035-37 can fall more. We have advised small traders to take some profit. Below 1035 more fall ahead.

>>> RELIANCE - As Posted on 03rd March, 2016 <<<

>>> Click the chart to see on full screen <<<

Posted last week - Reliance Industries may correct. Though Price managed to rally till 1045.90 and started reversing.

>>> RELIANCE - Happened <<<

>>> Click the chart to see on full screen <<<

Yes, We have short Position and if price can't hold 50 HMA - means more fall likely till the next support line.

>>> Performance till 11th March, 2016 <<<

>>> Click the image to see on full screen <<<

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