Friday, October 17, 2008

india markets hit the bottoms

technical analysis demands,certain evidence which CAN suggest that the prevailing trend has been reversed,,,markets so many times produce such mooves that a technician starts believing that the end of the current phase is very much near,but market fools him,such things happen so many times during a strong trend that at one stage he just stop looking at such reversal signals and just wait for the LATE BUT CONFIRMED reversal signals,and he argues that ,,let the market itself say that its turning !!!!!!!....infact ,nothing wrong in such an attitude, present the whole world market and india in particular is producing such signals that ,,,,,clearly suggests TO ME me that ...theres a very very high probabilty that sensex and nifty had seen their respective bottoms at their lows yesterday....such strong bearish trends cant reverse their course all of a sudden and overnight,,there will be some pattern formation on daily charts ,there will be abottom testing,there may be another small leg of downward move to produce positive divergance for the rsis and rocs ...a 3-6 months consolidation phase will be there........and as bottom formation in general phases out sector wise..some weak sectors will be seeing still lower levels in the medium term future,,but most of the active and fundamentally stronger stocks have seen their bottoms as on yesterday..
as we all know, psychology plays the most important role in markets,and at the pick of a typical top or a typical bottom the greed & fear factors reaches there extreme,,although there is no measurement for just collecting news paper clips,,video clips of tv shows for one week..and watching both in a silent room can give a my opinion the fear factor is at its best now than ever before !!! fear among who ?? ,,a day trader is in its greep,an investor is out of the markets,,,infact selling his holding at current lelvels... there is redemption pressure on mutual funds.,an economist draws a gloomy picture....govt. auhorities at last accepting that yes we may be in recession{read mr.bernanke}..and the whole in the bear hug......the picture is exactly reverse of the one which we saw in jan-08.....remember my words the long term india story is quite intact,,find out a country in the whole world thats been growing in the recent decade {after china} with a gdp of over,this is the BEST TIME TO INVEST IN INDIA.
BJNAIK.17 October, 20083:47:08 AM

Friday, October 10, 2008

time to INVEST

HI, morning , we are going to see one of the worst opening for even our markets, and having seen such turbulance times on many occasions, and having studied daily ,weekly, monthly charts i suggest to buy following shares, with an investment point of view, with a target of 30-40 % return within a time-span of 3 months....we will check opening prices of these stocks tonight.
1} bharat forge
2}bombay dyeing
3}guj alkalies
4}guj mineral
5}hinduja ventures
6}jp associates
7}micro inks
8}neyvelli lignites
10}rel. petro

Thursday, October 9, 2008

technical analysis

what a turbulant period we are as a participents of stock-markets watching through !!!!!...learned masters of the great subject technical analysis,,like john murphy,adwerd & maggie,steve nisson,martin pring,,and most others illustrated the effects of human psychology and especially greed and fear in details in their master works,, years back on the stock market behaviour and vow !!!!!! we are watching these factors working live...erosion of wealth of common investor on such a massive scale is really very very sad..a speculator who trades blindly and against the trend can easily loose his entire life time savings in only a few days,,like these...i have been taking a class recently to teach technical analysis to a few young generation traders since last 20 days, beyond general technical analysis i gave importance to greed & fear and the real psychology of markets in last few days,,the impact of my teaching was so good that they virtually stopped trading in the manner they were used to ...and all in their own words saved atleast 2-3 lacs of rupees....hates off to the great subject !!!!!!!

Wednesday, October 1, 2008

a quarter ends with positive techno-funda factors...take a note

in todays article,i am trying to present my thoughts on fundamental projections of india economy based on techniacal analysis of our indices.before looking at technical position of sensex and nifty,i would like to draw attention to the fact that since mid-july our indices started to deviate from the world indices,especially the asian inidices quite dramatically..i as a student of the great subject of technical analysis have been learning one very very important so called golden rule of the subject ..MARKETS DISCOUNTS THE FUTUE.. i have read this one sentence time and again in almost all the great books on the subject,and i do believe and i always express my thoughts on technical picture keeping this in mind.the deviation of our indices from other markets from mid -july onwards ,now as on yesterday if one observes charts of world market indices, its easy to find out that only 4-5 indices have not broken the july lows,,and india is one of them..this is clearly the net effect of the deviation process started from mid the question is ..that weather this clear strenth shown by indian indices is the indication of great strenth of indian economy as well ???..i am here trying to have an answer of this question using my way of doing technical analysis.their are very very clear two possibilities of where our markets are headed..its not that they are either going to go up or down...the answer of what lies ahead depends upon a trading range breakout and in my opinion the breakout will be coming very soon ,perhaps within next 2 months..
i here would like to note some fundamental developments in last 2 months,
1} oil coming down from 147 usd to less than 100 usd and looking to its weekly charts i think its headed much lower ,atleast in the medium term future, india is among very few countries where lower commodities price ,especially is a boon to its economy....inflation must come down in the medium the interest rates may also have topped out.
2} reliance industries ,the giant of indian companies announced last week the driiling of oil and gas from the KG-BASIN has been started ,and one important ALMOST UNNOTICED ANNOUNCEMENT from mukesh ambani was that within 18 months from the start ril will be able to produce 40% of indias total oil demand per year,,as on today, indian oil import is 1/3 of its total import and should be roughly more than 50 billion usd...{was 44 billion usd in 2006},now just take out 40% out of this amount which will ultimately be REMAINING IN THE COUNTRY ITSELF....i am not an economist but my commonsense suggests me it will have a huge impact.
3} clearance from NSG and neuclear deal with the USA will take more than 5 years for the real impact of this factor ,but the different sorts of news that will follow in coming months a new nuke deal with france or germany or any other country,,,than news that indias old nuke plants actually getting uranium from other countries and news that a certain company announcing building of nuke plant ...and so on ..will surely have positive psychological impact on investors..
4}THE USA in last few months seen quite a few of its major financial companies collapsing starting from bear sterns to fennie and freddy ,to the giant lehman and wamu followed by wachovia.....none of the indian banks have any MAJOR IMPACT OF THIS SORT .this shows atleast upto this day that theres no direct impact of subprime crisis OF USA in india.
these are the few fundamentl changes took placed in last months,their positive impact is yet tobe felt on the markets in a big way..more on technicals today evening.but would love to mention one technical aspect of yesterdays close ,was that yesterday a new quarter was ended,and quarterly charts of SBI,HDFC,ONGC...only a few of showing quarterly bullish canlestick patterns suggesting trend reversal on quarterly basis !!!!!...simply put..only a day after the US markets closed down collapsing the most after 1987..some of the indian major are showing signs of bullishness...quite unbelievable.. but thats the saying goes on charts speaks..we have to hear them...........................