Nifty Break 2638 -

Target 2550

Then more selling pressure

emerge in the market.

EXPERTS COMMENTS

Nifty PCR has been increase up to 0.83 levels as heavy unwinding seen in at the money put option and highest call activity occurred in 2800 and 2700 strike price. Roll over till date of Nifty is15.32%, while in stocks LT, BHEL, Tata Steel, Suzlon & Unitech has shown a significant rollover. During the intraday session the FII trend were mixed, but they were the net seller in cash segment. Heavy call writing was seen in the 2800 call thus it work as a strong resistance and we do not expect that market to go beyond 2800 till expiry. We have seen fresh short position formed in IB Real Estate, Praj Ind, Rel Capital, and Axis Bank so we can suggest that the traders may raise short position in these stocks.

NIFTY FUTURE + BANK NIFTY +CNX IT

: Nifty Future :

Nifty 2500 are major support

Remain above, buying opportunity on panic

NIFTY :   Higher level major resistance 3160. Weekly support 2683, resistance 2870 3037, down side support 2516 2329. Today resistance 2700, crossover think positive, down side support exit 2600, thereafter non stop target 2550.

BSE :  Today resistance 8850, down side below 8649, non stop target 8502, 8300.

CNX IT : Weekly trend decider 2313 resistance 2466 2612, down side support 2168 2015.

BANK NIFTY Oversold counter.. but cautious at higher level.

DOW :
Consider Down Major support 8000, described as negative, indicating further weakness to the down side and we are looking down ward up to 6600-6700. (If hold 8000, corrective rally likely but our lower level target intact and remember more and more pain USA in 2009)

Citigroup Failure Imminent

If so Banking System Shutdown Possible.

USA HISTORY OF BANKING FAILURE/COLLAPSED

1933 - 4000 Banks (Maximum no. of Banks)

1989 - 534 Banks.

2008 - 22 Banks.

Citigroup, US second largest banking conglomerate, is on the brink of failure. Stock price already collapsed. If it fails, the largest banking disaster in history, involving $ 2 trillion of assets (Credit Card Port folio - 185 Million Accounts worldwide) which is six times of Washington Mutual Fund. Present Position indicate no buyer big enough in the USA to absorb Citigroup. Nor, it is likely that an internal consortium of banks would want to squander the previous capital that have left on a sinking titanic, the size of Citigroup. In addition, Citigroup had a massive portfolio of credit cards - 185 million accounts worldwide - that felt could be the final nail in its coffin. Even before the most recent episode of the global financial crisis, Citigroup's losses on bad credit cards had surged by 67% from a year earlier. Worse, the number of credit cards 90 days past due was going through the roof, foreshadowing more large losses on the way. All of these weaknesses were detailed in Citigroup's financial statements.

Cause of USA Banking collapsed :

Derivatives are bets made mostly with borrowed money. They are bets on interest rates, bets on foreign currencies, bets on stocks, bets on corporate failures, even bets on bets. The bets are placed by banks with each other, banks with brokerage firms, brokers with hedge funds, hedge funds with banks, and more.

They are often high risk. And they are huge. According to the U.S. Comptroller of the Currency (OCC), on June 30, 2008, U.S. commercial banks held $182.1 trillion in notional value (face value) derivatives.
¹ And, according to the Bank of International Settlements (BIS), which produced a tally six months earlier for the entire world, the global pile-up of derivatives, including institutions in the U.S., Europe and Asia, was more than three times larger - $596 trillion.

That was ten times the gross domestic product of the entire planet ... more than 40 times the total amount of mortgages outstanding in the United States ... nearly 60 times greater than the already-huge U.S. national debt.

RELIANCE: .
Higher level major resistance 1250.
Weekly trend decider 1121 resistance 1202, 1251, support 1072, 991. FIIs are in a selling mode. Below 1100, selling opportunity. And likely test 1020, 1000 mark.

SUZLON ENERGY:
 
Weekly trend decider 50, resistance 56, 62, support 44 38. Decisively break 40, another round of panic selling in this counter, today resistance 45.

PUNJ LLOYD : Weekly trend decider 159, resistance 178 205, support 133 113. No if and but, on opening bell sell, non stop target 125, thereafter it will touch 95 mark in coming days. Below 140, 156, bear favour.

LANCO :Weekly trend decider 121, resistance 142 167, support 95. Down side last and final support exit 103, thereafter real panic will start and likely test 80 mark.  

TISCO:  
Today break and trade below 150, non stop target 135 and close below it will touch 110-100.

HINDALCO. Weekly trend decider 55, resistance 63, 73, support 45 37. Below 54, super hot sell.

BANK OF BARODA:. Keep a stop loss 260 and sell, more close below 240, free fall in coming days.

AXIS BANK : Weekly trend decider 406, resistance 428 440, support 394 371. As remain below 420 sell only.