Archives : WAR CLOULD ENGULFS MARKET - 26/12/2008.

WAR CLOUD ENGULFS MARKET – 26/12/2008.

 

The market lost its momentum amidst continous speculation of a breakout of war. The market which had last week closed above the important level of 50 DMA was not able to sustain & lost substantially to close below the 50 DMA. All this happened inspite of much lower inflation figure, comparatively stable global market & drastic drop in crude prices.

The intermediate short to medium term uptrend has given away to a short to medium term downtrend.

 

RollOver Analysis:

 

SENSEX.

For the week ahead the Resistance is at 9633-9838-9911-10188. Support is at 9028-8909-8726-8590.

 

NIFTY.

For the week ahead, the Resistance is at 2922-2960-3046-3110. Support is at 2812-2700-2570-2502.

 

LAST WEEK’S RECOMMEDATIONS:

The market was extremely volatile to say the least. But inspite of such Bearish conditions, our Recommendations on BPCL & EDUCOMP managed to reach the Target. However IOC & ESSAR OIL did pretty well too.

 
  • Buy BPCL 385 Tgt was 400 Reached 400.
  • Buy IOC 423 Tgt was 434 Reached 430.
  • Buy Essar Oil 94 Tgt was 102 Reached 100.
  • Buy GVK Power 23 Tgt was 26 Reached 24.15.
  • Buy L&T 819 Tgt was 844 Reached 836.
  • Buy Educomp 2727 Tgt was 2868 Reached 2868.
 

THIS WEEK’S RECOMMENDATIONS:

 

WATCH OUT FOR:

 

 

  

WAR CLOUD ENGULFS MARKET – 26/12/2008.

 

The market lost its momentum amidst continous speculation of a breakout of war. The market which had last week closed above the important level of 50 DMA was not able to sustain & lost substantially to close below the 50 DMA. All this happened inspite of much lower inflation figure, comparatively stable global market & drastic drop in crude prices.

The intermediate short to medium term uptrend has given away to a short to medium term downtrend.

 

RollOver Analysis:

The roll over analysis suggests the percentage of Nifty roll over & market wide roll over remain at almost same level as that of the previous month. However, the stock futures roll over has been lesser as can be seen by the decrease in overall Open Interest of the stock future. But the trading activity seems to have shifted to Options. The Options Open Interest has increased substantially as compared to previous month. The Option writing suggests the market may be in a range of 2800 & 3200.

 

SENSEX.

Sensex opened the week at 10102, made a high of 10173, made a low of 9294, and closed the week at 9328, thus registering a weekly loss of 771 points.

The Sensex has formed a Bearish Engulfing Candle on the weekly charts.

The Sensex has closed below the 50dma and hence the short to medium term trend has turned down.

It has formed a falling gap formation between 9838-9894.

Current fall is a result of selling pressure witnessed around 10000 levels.

The Trendline Resistance is at 10079 and Trendline Support is at 9028-8590.

For the week ahead the Resistance is at 9633-9838-9911-10188. Support is at 9028-8909-8726-8590.

 

NIFTY.

Nifty opened the week at 3077, made a high of 3110, low of 2844, and closed the week at 2857. The weekly loss was 220 points.

Nifty has formed a Bearish Engulfing on the weekly charts.

The Nifty has closed below the 50dma and hence the short to medium term trend has turned down.

The indicators point towards weakness.

The Nifty O.I.PCR is at 1.12 suggesting that still some bullishness is left in the market.

The Nifty Put of 2800 & Calls of 3000 and 3200 have added lot of Open Interest, suggesting some support at 2800 & resistance at 3000 levels.

The Trendline Support is at 2806-2700 and the Trendline Resistance is at 3095.

For the week ahead, the Resistance is at 2922-2960-3046-3110. Support is at 2812-2700-2570-2502.

 

LAST WEEK’S RECOMMEDATIONS:

The market was extremely volatile to say the least. But inspite of such Bearish conditions, our Recommendations on BPCL & EDUCOMP managed to reach the Target. However IOC & ESSAR OIL did pretty well too.

 
  • Buy BPCL 385 Tgt was 400 Reached 400.
  • Buy IOC 423 Tgt was 434 Reached 430.
  • Buy Essar Oil 94 Tgt was 102 Reached 100.
  • Buy GVK Power 23 Tgt was 26 Reached 24.15.
  • Buy L&T 819 Tgt was 844 Reached 836.

Buy Educomp 2727 Tgt was 2868 Reached 2868.

 

THIS WEEK’S RECOMMENDATIONS:

  • Sell BHEL 1300 SL 1341 Tgt 1269-1242-1155.
  • Sell INFOSYS 1109 SL 1132 Tgt 1077-1040.
  • Sell Bharti Airtel 686 SL 698 Tgt 674-660-649.
  • Sell HDFC Bank 972 SL 995 Tgt 942-920.
  • Sell TCS 471 SL 480 Tgt 460-445.
  • Sell ONGC 642 SL 671 Tgt 612-597.
  • Sell SAIL 71 SL 75 Tgt 64-61.
 

WATCH OUT FOR:

 

 

  
Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

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