Wednesday, 18 September 2013

Nifty Opens with a Gap. Is this a Short term rally? Lets Read will 6093 play spoil sport?

Nifty opens with a Gap breaking its major trendline forcefully. Will this Rally Sustain or Nifty will come down soon to fill the gap.

For Nifty, 6093 is the immediate resistance and then teh next Resistance is too far at 6229. At present Nifty is comfortably settled above its 100 day and 200 day SMA.

Tuesday, 17 September 2013

Respect this Trendline on the Daily Chart on Nifty.

Respect this Trendline on the Daily Chart on Nifty.

If Nifty is not able to sustain above this trendline, be ready again for a down fall.

Monday, 16 September 2013

August WPI rises to 6.1%, food inflation at 18.18%

The Wholesale Price Index(WPI) for the month of August rose to 6.1% versus 5.795 in July. An ET Now poll had predicted the date to come in at 5.9%.

The headline inflation rose at the fastest pace for six months in August, driven by the jump in food prices. The food inflation for the month rose to as high as 18.18% versus 11.91% in July.

The reading for June was revised to 5.16 per cent from 4.86 per cent, data released by the Ministry of Commerce and Industry showed.

When he holds only his first policy review this week, the new RBI governor has to confront what may well prove to be the biggest challenge of his time in office.

Raghuram Rajan has already warned he does not have a "magic wand" to deal with India's economic crisis, but hopes are high he can find a formula to stabilise the rupee, calm inflationary pressure and at the same time spark a revival in economic growth.

But first he will have to deal with the outcome of a pivotal meeting on Tuesday and Wednesday of the US Federal Reserve. The Fed is likely to announce measures to rein in its massive economic stimulus, an expected policy tapering that has already sparked an emerging market selloff contributing to the rupee's fall to a record low.

The August WPI inflation last major data point before the former IMF chief economist, who famously predicted the global financial crisis, holds his first policy meeting on Friday.

The Fed is expected to reduce its $85 billion a month bond-buying programme, but financial markets are uncertain about the extent of the reduction.

Concerns that India, along with other emerging markets, will see reduced capital inflows once the Fed trims its stimulus programme have been a major factor in the rupee's slump.

Many analysts say the economy is more vulnerable than most because of a record current account deficit and a fiscal deficit, both bloated by the increasing cost of oil imports as global crude prices are rising.

Thursday, 12 September 2013

Symmetrical Triangle Breakout on Reliance?

Has anyone noticed this slow and steady build up of a symmetrical triangle formation. Well, Guys be ready for a wild and strong break out once Reliance breaks out of this Triangle at the tapering part.The breakout can be upwards or downwards and the stock can move drastically up or down respectively once this formation is breached

See rupee at 60 vs US dollar by March 2014: Rupa Kudva, CRISIL

See rupee at 60 vs US dollar by March 2014: Rupa Kudva, CRISIL

Tata Steel and Technical Analyis as on 12th September 2013 at 3.10 pm

Technical Analysis already worked on 2 occasions on the Daily chart of Tata Steel. Now it is forming a Pattern of Bearish Harami. Does that mean a fall is expected for Tata Steel.

ONGC - The Fall

On the Daily chart of ONGC, it seems there is a formation of near about Double Shooter Top or Tweezer Top with a difference of just 25 paise (293.20 and 293). This may be a start of another fall for ONGC as per Double Top Shooter Theory

For The Bulls, If they Nifty will move up then the may right to some extent as there is an unfilled gap on the upper side between 6047 and 6061. But be cautious there 2 unfilled gaps on the downside (5738 and 5688) and then (5552 and 5460).Nifty may come down to fill these down levels irrespective of it filling or not filling the upper gap.

Tuesday, 10 September 2013

Bajaj Auto Analysis

Bajaj Auto had shown a Formation of Tweezer Tops or Double Top Shooter on 26th and 29th July 2013.The top was 2050.Since then the stock fell with a force and showed a low of 1680 on 28th August 2013

Monday, 9 September 2013


A slightly missed out case of Double Shooter could be seen on Maruti Weekly chart (Week 

ended 31st August & Week Ended 7th September 2012) The lows had a difference of just 

20 paise.(1130 & 1130.20). From here the stock moved to make a high of 1777 on 24th 

May 2013

And now on the Daily chart The Maruti stock is gearing up itself for breaking 

major trendline resistance at 1370 levels

Tweezer Bottom or Double Shooter with performance of HCL Tech The Journey From 745 to 1070

Tweezer Bottom formation or Double shooter Formation is a Good Bullish Call and one can be Bullish on The stock.

Tweezer Bottom Or Double Shooter Refers to Two Adjacent Candles having same lows.The second candle in this 2 candle pattern should be green

In the above example HCL Tech made equal lows of 745 on 25th and 26th June 2013. The signal would be confirm if the third candle after the formation of Double Shooter Moves up. If one would have been long with the initial stop of 745, the results are in front of everyone.

Today the stock is at 1070

Axis Bank can still move further and has a resistance at 1120. Current Market price of Axis Bank is 1009.

Axis Bank can still move further and has a resistance at 1120. Current Market price of Axis Bank is 1009.

What Next for Nifty?

Nifty heading upwards to touch its crucial resistance of 5852. What next? Selling pressure expected from this level for Nifty. Well! it seems so!

Thursday, 5 September 2013

Morgan Stanley slashes Sensex target to 18,200

Morgan Stanley slashes Sensex target to 18,200

American brokerage Morgan Stanley today slashed its Sensex target for the next 12 months to 18,200, citing weakening macro fundamentals of the economy. 

"We cut our Sensex earnings growth estimates from 10.5 per cent to 4.1 per cent for this fiscal and from 19 per cent to 12.7 per cent for the next. The new 12-month forward Sensex target is 18,200. Given the tail risks, we underscore our bear case-- a 14 per cent fall in the Sensex with a 35 per cent probability," Morgan Stanley India head Ridham Desai said in a note. 

Citing the weakening macro fundamentals for the downgrade, Desai said: "We are trimming our broad market earnings growth forecast for FY14 to -6 per cent from 12 per cent and introducing an estimate of 5 per cent for FY15. 

On the triggers for the market, he said that signalling has been a key issue for the market and said "the RBI needs to reaffirm that high rates will linger and the government needs to endorse fiscal consolidation." 

He also warned that without credible policy measures, the market will be punitive with prices, especially the rupee forcing macro rebalancing. 

Equating the equity valuation template to the 1998 levels, he said a negative gap implies the market is not cheap though the P/B is in its bottom decile. 

Wednesday, 4 September 2013

Nifty Prediction

It Seems Nifty as we had predicted will remain Below 5448 today.

A close below 5448 could be an initial ignition for a further fall. 5351 looks as the immediate crucial support below which it can test 5297

Monday, 2 September 2013

Microsoft to acquire Nokia's handset business for $7.2 billion

 Microsoft Corp on Tuesday said it would buy Nokia's mobile phone business for 5.44 billion euros ($7.2 billion), and the Finnish firm said its CEO, Stephen Elop, would join Microsoft when the transaction closed. 

Finland's Nokia, once the undisputed leader in mobile phones, has been struggling to respond to the challenge from smartphone makers such as Apple and Samsung . 

Analysts say Elop's bold bet in 2011 to adopt Microsoft's untested Windows Phone software has yet to pay off. 

The deal is expected to close in the first quarter of 2014 and is subject to approval by Nokia's shareholders and regulatory approvals. Nokia partnered in 2011 with Microsoft and uses Microsoft's Windows software to run its mobile phones. 

"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," Microsoft's outgoing CEO, Steve Ballmer, said in a statement. 

"Bringing these great teams together will accelerate Microsoft's share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services." 

Nokia said in a statement it expected that Elop, along with senior executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber, would transfer to Microsoft when the deal was concluded. It did not say what roles they would take at Microsoft. 

Nokia board chairman Risto Siilasmaa would take over CEO duties while the Finnish firm looked for a new CEO, it said. 

Elop, a Canadian hired by Nokia in 2010 from Microsoft, has been one of the favourites to take over as Microsoft chief when Ballmer steps down.