Over sold market

Catch on panic and Sell on Rally

For swing/smart traders

EXPERTS COMMENTS

The Indian market closed in red after the huge selling observed across the Asian market. The news was American company Nortel has filed its bankruptcy. All the sectoral indices are ended with red. The major underperformed sectors are Bank, Realty, Metal, Power & PSU sectors. FII were the net seller in Index future, and index options while buyer in stock future and stock options. They were taking interest in put buying. Fresh short position has been formed in Unitech, RCOM, Tata Steel, Sterlite and DLF. So we suggest the participants that they should trade in these stocks with bias

FII ACTIVITY

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The most active contracts in FII counter are Nifty 2450 put up by 142%, Bank of India 220 put up by 133%, Maruti 500 put up by 108%, and STER 270 put up by 12%. Total NET BUY / SELL VALUE in the FII's counter is following - In Index future it is -470.20CR, In Index Option it is -316CR, in Stock future it is 371CR & in stock options 46CR

NIFTY PCR STRATEGY:

Nifty PCR level becomes 0.95 level. Higher level PCR levels were seen in PNB 5.20, Wipro 2.85, Ivrcl infra 2.50, BPCL 2, and Gujarat alkali 1.50. While lower PCR was seen in HDFC 0.85, ONGC 0.88, BHEL 0.98, Niit tech 1 and Infosys tch 1.50. Highest call activity was seen in 2800 and 3000 call while highest put activity was seen in 2700 and 2800 put

Always Remember :

1.   The World did not stop lending, servicing & consuming, it moved on.

2.   Turmoil in stock market excellent buying opportunity for long term investors. (Expected return 100 to 300-500 percent in 12 to 36 months)

NIFTY FUTURE + BANK NIFTY +CNX IT

: Nifty Future :

Bearish opening.... Thereafter short covering possible on intra day basis... then......

 Nifty Future Weekly Analysis

Views of Nifty Future : Nifty future remain inside a trading range and hold the major support level 2800. For smooth run of it must cross and close above 3150-3250 range thereafter it will be able to reach 3550-3600 range but at present market conditions chances are very remote.

On the other hand this down trend will be accelerated when the Nifty break and trade below 2800. On a option side heavy call writing were seen at 3000-3100-3300 strike which further confirmed that traders may not be confidence of a further rally. Interestingly 2900 puts also witnessed sharp drop in open interest which indicate profit booking by put buyers and they are shifting their position at lower band like 2700 and 2800 saw sharp accumulation in open interest position. Consider trading range 2800 to 3150, down side break and close below 2800 confirmation of weakness and play for short sell is a best strategy. Below 2800, non stop target 2600 thereafter the possibility of falling again to its October lows of about 2250.

NIFTY :

Monthly: Trend decider is 2881 and resistance is 3187 and 3416 and support is 2653 and 2347.

Weekly: Trend decider is 2942, resistance is 3074 3278 and support is 2738 2606.

Strong resistance 2830-2850. Today resistance 2750, 2790, break and trade below 2700, non stop target 2650 and likely reversal

CNX IT :

Weekly: Weekly trend decider 2222, higher level resistance 2331 2467, down side support 2086 1976.

Today resistance 2200, below 2150 selling opportunity.

BANK NIFTY :

Weekly: Weekly trend decider 5061, higher level resistance 5275 5659, down side support 4677 4464.

Higher level selling opportunity. (from 5500 to 4500)

DOW :

Above 9000 over all positive and target 9500-9600, close below 8000, panic in the USA market and expected very bad news.

RELIANCE:

Monthly: Monthly trend decider is 1224 resistance is 1415 1597 and support is 1042 and 851.

Weekly: Trend decider is 1209, resistance is 1325 1506 and support is 1029 913.

Further up move only above 1220, if sustained with volume, today support 1100-1090 panic up to buying opportunity and sell on rally.

SUZLON ENERGY:.

Monthly: Monthly trend decider is 54, resistance is 72 83 while support is 44 26.

Weekly: Trend decider is 56, resistance is 67 80 and support is 42 32.

Keep a stop loss 52 and sell, down side target 45, thereafter more weakness

IBREAL:

Monthly: Trend decider is 129 , resistance is 173 216 and support is 87 43.

Weekly:
Trend decider is 123, resistance is 151 188 and support is 86 58.

Higher level resistance 120-123, if hold with volume fantastic up move

PUNJ LLOYD:

Monthly: Trend decider is 149, resistance is 171 195 and support is 125 104.

Weekly:
Trend decider is 129, resistance is 152 190 and support is 90 67.

Over sold counter and at the current level no short sell please, lower level strong support 100 mark. It will face resistance 120 mark.

IVRCL INFRA :

Monthly: Trend decider is 149 and resistance is 241 and 338 and support is 51 and 40.

Weekly: Trend decider is 126, resistance is 164 208 and support is 82 44.

Further up move only above 122.

BALRAMPURCHINI:

Monthly: Trend decider is 44, resistance is 58 66 and support is 36 22.

Weekly:
Trend decider is 50, resistance is 54 58 and support is 46 42.

Lower level 41-42 are a excellent support ------ Today above 51 looks good.

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