Nifty - On First Support Zone!!!

Dear All,

>Click the chart to see on full screen<

Nifty near its First Support zone. 5672 which is 23.6% retrace of the current up move. 5666 - which is todays low is also very important for tomorrow. Breaks below these 2 levels may push nifty to the next lower level target. Please refer Last friday and Monday Posts for targets.

Cheers!!!

Nifty - Here comes the Bear ?!?!?

Dear All,

>Click the Chart to see on full screen<

If you might have read my Weekly Review - You should not surprised by the Sell off today. So as expected the Bear returns. Tomorrow 5640 act as a support. If breaks then only a fall up to 5560 comes in. If Breaks 5540 then a fall upto 5430 cant be ruled out in coming days.

>>TATA MOTORS<<

>Click the Chart to see on full screen<

Tata Motor - Following every week, now its time to short. As I gave a short call to my client

(08/Oct/2012 10:07:18): ****N4A-STOCK-ALERT****Sell N Hold TATA MOTORS below 278. SL above 284. Target 272,2xx and 2xx (all spot level)

(08/Oct/2012 13:52:26): ****N4A-STOCK-UPDATE**** TATA MOTOR: CMP:273. SELL GIVEN AT 278. PROFIT SO FAR 1000 X 5 = RS.5000. SMALL TRADERS BOOK PROFIT. OTHER SL CTC

Expecting more fall in coming days...Let see.

Weekly Review - 08.10.2012

Dear All,

>>> NIFTY <<<< Hourly Chart

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

Hourly chart EW counts suggest that the Last 5 waves with Extension has been finished. On Friday Price broken the so far upmove channel and now if the Interim channel in yellow color gets broken, then a clear sign of bearish emerges with good sell off on card.

Eod Chart

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

A Bearish Engulfing Candle on Daily Chart Suggest a Strong reason to believe the Uptrend may be reversed. I suspect a heavy sell off next week.

Weekly Follow Up:-

>>> IFCI <<<

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


Chart I gave last week. Below chart is Happened this week

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

As expected IFCI started its down move, My first target also hit. I suggest caution for those who hold this stock as I expect more downside in coming days.

Weekly Chart >>> TATA STEEL <<<

Seems like a IHS - But continuously Resisting at 61.8% raises concern. Need a clear signal - a break out above 417 with volume may trigger in Bulls side.

But the EW count suggest caution as there can be some cool off happen before an upmove.

Lets see. Cheers!!!

Nifty - Is Bear Dead or Alive ???

Dear All,

>>> NIFTY <<<

>Click the chart to see on full screen<

Nifty retraced almost 61.8% of wave (iii) - seems that this can act as an Strong Resistance. Cross above this level may test 5878 which is 78.6% of retrace level. Lot of news like FDI in Insurance etc., huge Buying spree from FII's driving the market higher with Extension waves in Nifty. No doubt all are in doubt and Nifty short holders are in Panic.

Nifty shall correct only when the Channel Line gets broken as shown on chart.

I have received many queries about "What's my view on Nifty". As I wrote Yesterday - every one should understand that its hard to trade on Extension Waves. Lot of Negative Divergence can't stop Nifty. So One should wait till a strong signal emerges.

Todays Performance:-

(04/Oct/2012 09:18:22): ****N4A-STOCK-ALERT*** :- Sell CIPLA below 378. SL above 386. Target 368 & 356. (all spot levels)

(04/Oct/2012 15:24:03): ****N4A-STOCK-UDATE*** :- CIPLA 364. SELL GIVEN AT 378. PROFIT 1000 X 14 = RS.14000/-. BOOK AND ENJOY.

27/Sep/2012 10:10:02): *****N4A-STOCK-ALERT*****Sell N Hold IFCI between 31-31.30. SL above 31.90 (closing Basis). Target 29 & 27. (All spot Levels - Lot size:-8000)

(04/Oct/2012 15:15:01): IFCI hit 29. Profit 8000 x 2.30 = Rs. 18600 = Great Profit. Book and Enjoy

I have given IFCI Chart and Details for its weakness in my Last Weekly Review. Refer it.

Nifty - Is this Last Leg or Beginning ???

Dear All,

>Click the chart to see in full screen <

Usually its very difficult to trade on Extended Wave Pattern. Market usually move in a choppy and volatile manner. Right to say hard to trade and Stop Loss to hit on either side.

Thank god, we are able to make some reasonable profit, even though we had some stop loss also.

Here in Nifty it seems to be on Last leg of upmove, means an interim correction is set to go. As I mean to say that 3rd or C wave is set to complete and may correct.

It should be noted that even though there is a Negative Divergence on chart, there is no Valid Sell Signal, means possible of extension is also more which choppy trade in coming days too.

>>BANK NIFTY<<<

>Click the chart to see in full screen <

Bank Nifty consolidating inside a Box after completing 1-5 seems to be fishy, a break out on either side to decide the trend.

Lets See. Cheers!!!

Nifty Faces Resistance at 5726 & 5740

Dear All,

>Click the Chart to see on Full Screen<

Nifty facing a Resistance on 5726 & 5740. If breaks Support at 5690 then possible fall upto 5645 to fill the gap left.

Auto Sales - Golmaal

In both 2010-11 and 2011-12, the government appears to have been juggling export figures to paper over what looks more and more like an unexplained overinvoicing scam.

The story begins in October 2011, when three smart cookies at Kotak Securities smelt something fishy in the government’s export data for 2010-11. The three – Sanjeev Prasad, Sunita Baldawa and Amit Kumar – said: “Our study of exports data of major engineering companies (including automobiles and metals) shows that the increase in their exports does not reconcile with the steep increase in official exports data. In fact, the gap is quite substantial.”

According to them the official export data showed a 79 percent year-on-year export growth in 2010-11. Exports by engineering companies in the BSE 500 (the cream of India Inc) showed just 11 percent growth. In dollars, the engineering export jump accounts for $30 billion (up from $38 billion to $68 billion), while the figures for the BSE 500 showed a rise of just around $1.38 billion. (All approximate figures due to rupee-dollar conversion at fixed rates).

The government woke up in December 2011, and put it all down to a system crash in the commerce ministry and mistakes in data classification and data entry.

The then Commerce Secretary announced that exports in April-October 2011 had been overstated by $9.4 billion. The real goof-up was bigger, with engineering exports being overstated by $15 billion and a $12 billion underestimation in the case of petroleum and gems and jewellery exports, apart from other goofups.

Kotak also brings back the question of car exports. India, it seems, managed to export more cars for less in 2011-12: a six percent fall in earnings despite a 14 percent rise in the number of cars exported. This is, of course, possible if smaller cars are being exported (or discounted) as against larger ones before, but was that what happened?

According to the Kotak report, “exports of cars as per government data declined to Rs 18,200 crore in FY2012 from Rs 19,200 crore in FY2011 despite the number of exported cars as per Society of Indian Automobile Manufacturers (SIAM) rising to 5,07,318 from 4,44,326 in FY2011.”

The commerce ministry is tying itself up in knots over export data when there may be a simpler explanation at hand: overinvoicing by exporters in 2010-11. That would also mean some of the black money held abroad may have come back into India as export earnings – on partially fictitious exports.

Nothing less than an investigation by the Comptroller and Auditor General and the Central Bureau of Investigation will unravel the real truth behind these dubious numbers.

>>TATA MOTORS<<

Tata Motors reported 3.82 percent decline in its total vehicle sales to 75,773 units in September.

Tata Motors had sold 78,783 units in the same month last year, Tata Motors said in a statement. The total passenger vehicle sales in the domestic market stood at 21,652 units in September, down 17.73 percent from 26,319 units in the same month last year.

The company’s exports decreased by 12.48 percent to 5,441 units last month from 6,217 units in the same month last year

>Click the Chart to see on Full Screen<

A Bullish Flag Like Pattern emerges on 5 mins chart shown above. But it seems that EW counts looks bearish as it has completed an correction upmove wave B and started wave C on the downside. If breaks the Trend Line and Channel (flag) then Tata Motor may try to fill the gap left on the bottom of the Chart.

Also we have discussed earlier that Tata Motors is forming a H&S on Daily Chart. A Break below 250 shall confirm that.

Weekly Review - 30.09.2012

Dear All,

As Expected Fiscal Deficit Alarm was sounded by Kelkar Panel Recommendations on Friday. The Report has warned the Government that fiscal deficit would reach 6.1 per cent of GDP against the Budget estimates of 5.1 per cent. It said the Budget had overestimated tax receipts by Rs 60,000 crore and underestimated subsidies by Rs 70,000 crore.

Following are some "Unbelievable Recommendations by the Committee.

> The panel wanted the government to increase the prices of food items sold through ration shops, every time the minimum support price is revised. Besides, it recommended removing the system of selling the sweetener through the ration shops.

> The Panel suggested immediately increasing the diesel prices by Rs four a litre, kerosene by Rs 2 a litre and LPG by Rs 50 per cylinder. These steps, would reduce under-recoveries of oil marketing companies by Rs 20,000 crore, it said. However, the government’s recent steps would themselves reduce underrecoveries by Rs 20,300 crore, according to estimates of analysts.

> The committee further recommended regular raising of diesel prices until it becomes completely deregulated, and keeping subsidy at affordable level on LPG and kerosene.

> The Kelkar panel fovoured a proposal to increase the MRP of Urea by 10 per cent during the first year with any further increase being limited to any increase in the pooled gas price and in fixed

>The report comes after Prime Minister Manmohan Singh unveiled a series of big-ticket reforms on Sept. 14 seen as key to reviving sluggish economic growth. It provided a sobering reminder of the challenges still facing the government.

> Singh, in a rare televised address last Friday, warned his countrymen that "money does not grow on trees" on the same day that his biggest ally quit the government in protest against the reforms, which included opening up the country's retail sector to foreign supermarkets.

>Failing to tackle the deficit means India could potentially face a worse situation than the balance-of-payments crisis in 1991, when the country was bailed out by the International Monetary Fund (IMF), the report said.

Mean while The government on Friday said the rupee could touch the 50-mark to a dollar in the next four months on the back of strong inflow of foreign currency.

Added more that appreciation of rupee would help cutting down the subsidy bill and cool down inflation, which stood at 7.55 per cent in August.

>>>NIFTY - Weekly Chart<<<

>Click the Chart to see it on full screen<
Nifty Weekly Chart - Seems to be Possible Double Top near 5735-40 level.

>>Nifty - Daily Chart<<

>Click the Chart to see it on full screen<
Nifty Daily Chart - Unable to cross the channel suggest end of sub wave 3 or c.

>>>IFCI<<<

On Sep,26th IFCI started its fall on the Opening bell when Sebi has approved a proposed hike of the government's stake in IFCI Ltd to 55.57 per cent to make it a state-run company, without triggering an open offer for shares of public investors.

Unluckily I had a Call on IFCI to sell on 25th Sep,2012 below 31.30 (spot) - did not triggered and fell down sharply on the next day opening itself.

Meanwhile, Cabinet last month approved a proposal for conversion of debentures worth Rs 923 crore into shares of IFCI, following which the government’s stake in the financial institution would rise to 55.57 per cent, from a meagre 0.0000011 per cent currently.

So what's Wrong in SEBI's Order:-

IFCI investors are of the view that the conversion of debentures should be made at a price that is determined according to Sebi-mandated formula for preferential issues. This would ensure a fair deal for minority investors in the company. If debentures are converted at par, it erodes the value of small investors substantially

>Click the Chart to see it on full screen<

IFCI - Daily Chart shows a Head and Shoulder - I have earlier suggested last month in my Weekly Review that - Head Shoulder for a Target of 23-24. After hitting the Target, Price bounced back to touch the neck line as shown on chart. Now its time to fall once again.

>>>IGL - Indraprastha Gas Ltd <<<

"Natural gas prices must be determined by market forces," the 12th Five Year (2012-17) Plan document states.

After a tuff fight between PNGRB in SC and Delhi HC - its seems the war may end sooner, and allow IGL to fix its rates on own. As RIL also seeking an increase in Gas Price from Govt of India, it shows IGL may raise its price sooner with out any trouble may favour IGL in coming days to increase its revenue substantially.

>Click the Chart to see it on full screen<

IGL - Hourly Chart shows the Trend Line Break Out with Volume. Upmove Should continue as per Chart.

>>>INFY<<<

>Click the Chart to see it on full screen<
Whats the Latest News on Infy :- The Compnay considering giving wage hike to its employees in October this year. The extent of the hike could be in the range of 5-6%, according to sources in the company.

The decision on wage hike would be taken after the closure of the book next month. Infosys will announce its second quarter results for FY13 on 12 October.

In April this year, the company had decided to defer the annual wage hike citing uncertain business environment and slow growth. The company however had said that it would revisit the decision when the situation improves.

Which means the Cost for the company may increase substantially - during the time of poor business environment and may affect its revenue too.

Apart from News lets see what else left in Infy in coming days.

The rupee, Asia’s worst performing currency in the past six months, rose (appreciated) after the government allowed overseas retailers to invest in Asia’s third-largest economy and said foreign airlines can own minority stakes in local carriers. A stronger local currency hurts exporters because it reduces the value of repatriated earnings, Specifically IT Industry and Infosys in Particular.

Even though falling Western Nations and trouble in most of the Euro countries - sp far Infosys Profit not Hurt due to week Indian Rupee. The IT companies have gained a lot from the depreciation of the rupee recently.

But things have changed after latest Reforms form Govt. and Strength in Indian Rupee.

Every 1 percent movement in the Indian rupee against the U.S. dollar has an impact of about 50 basis points on Infosys’s operating margin, the company said in its annual report.

So lets see how Technically Infosys is going to be.

After a fall upto 2101 on 27th July,2012, INFY retraced till 61.8% of its previous high 2994 which I feel its an end of sub wave 2. The retrace was a-b-c as shown on above chart and a possible fall for sub wave 3 has already started. Break below 2520 may bring price upto 2440 which was my first Target.

But the fall may go deeper enough as I feel the Result won't cheers the Market and the guidance going to be too poor due to appreciating Indian Rupee.

>>>PERFORMANCE<<<

Following is the Performance for the month end of September 28, 2012.

Wish You all a Very Happy Weekend. Cheers

Nifty Support at 5623

Dear All

>>>NIFTY<<<

>Click the Chart to see on full screen<

Nifty forming a Flag like pattern and stuck in between those channel, today's attempt to break above the channel failed and fell upto 5640. Now if breaks 5640, next logical support at 50% fibonacci ratio along with the channel support as shown on chart.

Break below 5623 may favour bears with good sell off.

>>>TATA MOTORS<<<

>Click the Chart to see on full screen<

I think No explanation needed for the above Tata Motors Chart. Inverse H&S Break Out and falling to touch the Neck Line. But there is also another story in Eod which we have discussed along with chart last weekly review - as we found there is a Big Head and Shoulder.

So finally if 250 gives support - Possible bounce back, else may fall Heavily as per Eod Charts H&S Pattern.

Interesting days ahead. Lets wait and See. Cheers!!!

Nifty - Still Consolidation

Dear All,

>>>NIFTY<<<

>Click the Chart to see on full Screen<

Nifty not giving up even after breaking out of channel, raises concern about bears strength. 5640 Support and 5665, 5690 and 5720 Resistance should decide the trend in coming days.

>>>HINDALCO<<<

>Click the Chart to see on full Screen<

Earlier Last week we had a Call on Hindalco Short - Which did not perform well. Even after breaking the main channel as shown on chart - not able to fall. So we covered our Short on Cost.

>>>TATA STEEL<<<

>Click the Chart to see on full Screen<

Tata Steel we had a Short Earlier - Covered with good Profit. Right now Tata Steel 392 which was its Previous Low and 389 act as a good support as shown on chart. Break below these levels may invite good sell off.

Lets get ready for the Interesting Expiry Day tomorrow. Cheers!!!

Nifty - Consolidation

Dear All,

>Click the chart to see on full screen<

Nifty continue to consolidate. 5665 & 5650 remains as a near term support. 5690 & 5720 acting as an Resistance level.

Cheers!!!

Nifty - Here comes S&P Again !!!

Dear All,

Despite of Bold Action from Govt. on Reforms front, S&P Lowered India's GDP forecast to 5.5%. S&P have already cut India’s sovereign rating of `’BBB-’ to negative from stable in April. Even Moody’s was unimpressed by the reforms and said last week that the measures were too small to affect the country’s sovereign rating.

CRISIL too had slashed its forecast for the country’s GDP growth to 5.5% from 6.5% for this fiscal. HSBC has also cut growth forecast for fiscal 2012-2013.

India’s Planning panel also lowered annual average economic growth rate to 8.2% in the 12th Five Year Plan (2012-17) from the earlier 9% due to lower economic growth and lack of appropriate policy measures.

Mean While PMEA Council Chairman C Rangarajan said today that India's growth rate is expected to pick up in the second half of this fiscal and reach 6.7% for entire 2012-13

He said the agriculture performance this year would also be better than what was expected a few months ago. "Therefore, taking all these factors into account, I expect there will be a growth rate of 6.7% in current (financial) year.

Lets wait and See how S&P going to react on its Rating Front - as Govt of India has taken a very delayed action on Reforms front like FDI / Reducing Subsidy Bills by contracting fiscal Deficit etc., etc., blaw blaw blaw..

>>> NIFTY <<<

>Click the chart to see it on full screen<

A small symmetrical triangle break down - confirmed that Nifty shall fall upto 5600 & 5560. Negative Divergence on Hourly chart also confirmed the fall. 5540 which is a second gap may get filled possibly.

>>> HINDALCO <<<

>Click the chart to see it on full screen<

Hindalco - Was earlier in our List - Shorted and Earned also. Please refer the Performance for this month. Today also went Short -

Chart shows Negative Divergence - Unlike earlier - the counts were little bit changed and looking for a Target of 113.8 & 109 as marked on Chart.

>>> HDIL <<<

>Click the chart to see it on full screen<

HDIL - another case of Negative Divergence or Fake Price Movement - As shown on Chart - today have broken a small channel and tomorrow if trades below 88-89 then should fall more.

Lets See!!! Cheers!!!

Weekly Review - 22.09.12

Dear All,


GET SET GO ..... Said Govt.

Didi Gone, FDI amended, Cong govt Stable, Nifty & Sensex at a New High...What made these all, What else left to do ?

Nifty Jumped around 450 Points, Rupee at its 4 months High.


1) Govt Cut withholding tax on overseas borrowing by local companies to 5% from 20%. Now Cheaper Funds will flow into Local companies.

2) Fin Ministry also approved Rajiv Gandhi Equity Savings Scheme to encourage small investors to enter the stock market. Retail investors earning less than Rs 10 lakh ($18,400) annually, would be eligible for a 50% tax deduction on investments up to Rs 50,000. The programme will include mutual funds and exchange-traded funds.

3) Infrastructure and construction companies, burdened with huge debt, will benefit from the government’s tax measure.

4) Govt. would relax the minimum requirements for Indian carriers to fly overseas.

Inflation, Monetary Policy and External Factors like Euro Crises and Chinese issue remain the same, yet to be assessed going forward.

Weekly Nifty Chart :-

>Click the Chart to see on full screen<

Nifty Weekly Chart shows that Price crossed and closed above 61.8% retrace looks bullish. May cross over to 5950 which is 78.6% retrace next.

As per EW theory - On going Wave is C. 5870 is the Logical target for Wave C.


Daily Nifty Chart :-

>Click the Chart to see on full screen<

Daily Chart - Both Channels topping out - as 1-5 wave is ending - as its time for correction before a Next Upmove. Possibly a good round of selling next week possible.
May try to fill the first Gap at 5450.

Weekly Bank Nifty :-

>Click the Chart to see on full screen<

Bank Nifty Weekly Chart closed above 61.8%. But the Previous High 11433 may act as a Resistance this week.

Daily Bank Nifty :-

>Click the Chart to see on full screen<

Daily Chart of Bank Nifty - Have marked here as A-B-C. On going C was should cross 11433 as shown on Weekly Chart and should touch 11620 which is 78.6% retrace of wave A.

>Performance<

Following Excel Sheet is our Sep month Performance So far :-

Performance was down due to Tata Motor which had a gap up Opening a day after FDI bill Passed. Even though advised only small or risky traders to exit / Other to Average. So have deducted Tata Motor as Loss here.

Those who wish to Participate our Calls should call me on 9677924975 or krish_venkatesh@yahoo.com

Cheers!!!

Will Nifty Hold 5527 ???

Dear All,

>Click the Chart to see it on full screen<

Nifty support @ 5527. If breaks then can fall up to 5448.

Political Chaos Vs Nifty

Dear All,

Trinamool Congress chief Mamata Banerjee on Wednesday vehemently denied any attempt at communication from the Prime Minister's Office (PMO).

"You may control some channels but you cannot control us. We are transparent. People know our credentials," she added. "I was never informed about FDI decisions," Banerjee reiterated.

"I will stick to my position, come what may...the (TMC) ministers will tender their resignations," she told reporters, a day after she announced withdrawal of support and pull out of ministers, if the government does not go back on its decisions.

Trinamool Congress, the second biggest constituent of the UPA, on Tuesday dealt a major blow to the Manmohan Singh government when it decided to withdraw support on the issue of FDI in retail, diesel price hike, cap on subsidised LPG cylinders and corruption.

She had said that party ministers in the UPA government would meet the prime minister in Delhi and submit their resignations at 3:00 pm on Friday.


>>> NIFTY <<<

>Click the chart to see it on full screen<

Nifty forming a Pennant formation - a Break below the channel may target 5500 or 5450. Upper side break out may lead to 5660 & 5706.

>>> TATA MOTORS <<<

>Click the chart to see it on full screen<

Tata Motors - forming a Head & Shoulder - Support at 272, breaks below may lead a fall up to 263 & 257.

>>> HINDALCO <<<

>Click the chart to see it on full screen<

Hindalco - Complted a-b-c - retracement and broken the support of 114.50. Should fill the gap for a possible low upto 109 & 103

Bull Came with FDI Policy!!!

Dear All,

Sudden announcement of FDI Policy on Friday evening, Made every One surprise. It seems that Every thing was Planned Previously.

RBI also cut CRR by 25 BPS. Now the Question is why RBI refused to Cut for last 4 Session - as they have indicated Inflation as an Important Point of concern. As Diesel Price Hike may Impact 100 BPS on Inflation - is RBI cutting rate at right time.

Even though after Diesel Hike - Many voices are raised that fiscal Deficit shall be More than 1.25 Lak Crore Vs 85K crore Previously.

Nifty as Expected made a Gap Up Opening - made a come back in the afternoon session after RBI cut the Rates.

Now will Nifty cool at least a Bit form here ??

>Click the Chart to see on full screen<

Nifty Channel shows it faces Resistance near 5650.

>Click the Chart to see on full screen<

Hourly chart says sw(iii) has been completed near 5650 may correct for sw(iv) which may be near 5500 or 5450 as it may fill the gap left on chart.

Lets see. Cheers!!!

Weekly Review - 15.09.2012

Dear All,

>> After a Month long waiting Cong. Govt got the courage to Open the doors for FDI in Multi Branch Retail and Civil Aviation Industries. This will pave the way for the much-awaited entry of foreign retail giants such as Walmart, Tesco and Carrefour into the $450 billion retail market, although their footprint will be limited to million-plus cities in states which have agreed to back the measure.

>> The Cabinet Committee on Economic Affairs also approved disinvestment in public sector units - Oil India (10%), NALCO (12.5%), Hindustan Copper (9.59%), Neyveli Lignite Corporation (5%). This move is likely to fetch Rs 15,000 crore for the government.

The decisions on Friday, along with a go-ahead for disinvestment in four PSUs to mop up Rs 14,000 crore, come within a day of the ruling coalition's decision to raise diesel price by a stiff Rs 5 a litre and cap subsidized cooking gas cylinders to six a year for every household.

>> Foreign carriers were not allowed so far to directly invest in Indian carriers for security reasons, although 49 percent FDI by non-airline players was allowed.

According to civil aviation ministry sources, the directives for the implementation of the policy will be issued within a month.

Cong Govt, Says, Allowing FDI in retail will benefit farmers and the common man the most.

UPA constituent Trinamool Congress set a 72-hour deadline for the government for the roll back of the decision.

TMC said the decision is harmful for the people of the country. “It will allow multi-brand firms to dictate their own terms.”

BJP Said FDI in retail was made under the pressure of "foreign forces".

SP Said "FDI in retail would affect Indian market and agriculture. The move would hit Indian economy as retailers and farmers would be ruined by it,"

BSP also criticised the move by saying, “It will provide to be a fatal for farmers and will make India a slave of multi-national companies.”

CPI(M) Said “The UPA government "cannot give any job but is snatching jobs. It is destroying the livelihood of people through so-called reform measures aimed at pleasing corporates."

So Lets analyse - Is there any Special Features or good things that can help our economy ????

Yes, or May be..

The minimum FDI limit has been set at $100 million. Half of any investment has to be made in infrastructure like cold-storage chains and warehouses. This is designed to help the agricultural sector and India has a severe shortage of these.

Another point is Least 30 per cent of the goods to be sold will have to sourced from local producers, means local producers are going to have a good price for their Products from now onwards.

But the above rules has also been relaxed a bit by the govt that if companies don't want to procure 30 per cent locally, they will have to set up a manufacturing unit. Hence forth many FDI's wants this rule to be relaxed. There is split within the government over this.

The government argues that FDI in multi-brand will give consumers the best deals possible on goods and also get it much-needed money.

Also The government will have the first right to procurement of agriculture products. Fresh agricultural products, including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and meal products may be unbranded.

So Market getting ready to cheer on Monday also.

Coming back to Nifty - I was Pointing out that Nifty shows many negative divergence and advised caution. Instead after Friday's move from US QE3 - Nifty had a superb rally of nearly 150+ Points. Many asking or questioning that Is Nifty turned Bullish or Worst is Over????

I dont have any short call on Nifty. Due to caution - I have advised my clients to clear all Positions on the day of German Verdict and made NIL positions. We had some stock specific short calls - which is still open with out meeting Stop loss on friday's rally.

Next my level 5490 get breached and I agree that the Patterns and counts changed, even though I don't feel we may get a Buying opportunity as there is going to be one more gap up.

So whats else we have it more in Nifty lets see..

<< Nifty - Weekly Chart >>

>Click the Chart to see on full screen>

Weekly Chart - 5630 which is our recent high should be watched closely. 5575 & 5673 should be the Weekly Resistance levels.


>Nifty - Hourly Chart<

>Click the chart to see in full screen<

As said on Weekly Chart - 5575 & 5673 shall be the 61.8% & 78.6% retrace of sw(a).

>> Weekly Chart - Ranbaxy <<

>Click the chart to see on full screen<

Many queries about Ranbaxy - as many had this popular stock in their portfolio. I feel Ranbaxy is on A-B-C pattern - As B wave got over on 04th Sep, 2012 at 578.4. So Now stock may move down for Wave C. So I advice caution for those who where Long, atleast have your Stop Loss, as stock is ready for a deep correction.

Happy Weekend to All. Cheers!!!