First lets have a glance at the week…that was.
Monday started with a mild negative opening, after last Fridays, smar recovery from 5293,,nifty levels.nifty made a high of 5282, on Monday, but could not cross 5299
Which was previous weeks high..and one of my important target/ resistance.
As I suggested..last Saturday that there is a pattern called BEARISH EXPANSION
Is developing, and nifty seems to start a correction…after remaining sideways for
Two days, nifty finally decided to break down.
On 16th ,I had given a sell call on nifty below 5307…and yesterday ,we did see 5246
NIFTY has broken down from the short term support line,,that was mentioned
In the chart ,presented to all .last Friday.
I can see supports for the coming week emerging at around 5188---5122 levels
For spot nifty…for these levels to come nifty has to move below 5240 and
Now,,lets see where supports lies in some major stocks.
I have been observing hdfc as major indicator for the markets since past six months or so….it remains ahead of all others..
AS one can see on the chart of hdfc..it has been moving in a rising channel post budget…yesterday it took support in this channel and at one support level 2640
So for the next week,,it will be very interesting to see how HDFC moves.
We will give a follow up during the week.
But do remember that a strong close below 2640…hdfc can drag down to
WITHOUT reliance , one cant predict Indian markets.
Here again the post budget rally was very steep and was a RISING WEDGE(A BEARISH PATTERN),,,
RELIANCE has supports around 1075---1053..if these two levels are held
We may see some bounce back coming from Wednesday around in reliance.
Recently ICICI HAS been a major banking stock, over taking sbi.
And my major concern is ICICI.
IT has already broken out of a bearish expanding structure…it has supports
At around 905…and to take NIFTY up ICICI must trade and close above 964.
THE entire rally in our markets from march-09 lows , was started with huge contribution from auto stocks., which remained subdued in 2007—2008.
Maruti has been a leader of them.
I strongly FEEL that maruti has started a DEEP correction..
Maruti can find find support around 1239----1084.
So any rally in the coming week should be used to EXIT, AUTO STOCKS for
The medium term perspective.
As I HAD MENTIONED a few months back on my blog,,sbi had broken down from
A triangle pattern on weekly charts…and the rally started from around 1890 after budget , ..may have ended…as it found resistance at the trendline drawn on the chart.
Cmp 2047…if sbi closes below 2006..in coming days…it will have serious damaging
Effects on our markets for short---medium term.
LAST BUT NOT THE LEAST…
I have given a weekly chart of nifty…in which you can see a PARRALEL CHANNEL DRAWN .
OUR markets will enter a deep correction ONLY as AND WHEN nifty breaks below the support line ( THE lower channel line) drawn on the chart.
So, expect SUPPORTS at the lower line in coming weeks..
We , will PRESENT you some trading ideas FOR some small-mid cap stocks
For the week on Monday,, before markets.
DO REMEMBER that i was among very few firsts, who dared to say a buy call on nifty 2 days before the MEGA event, called budget, and i had given nifty target 5398 , almost 20 days before..recent nifty high was 5399,,,and on 8th april, i boldly said :"A TOP ".....WHEN NIFTY TRADED at around 5370.
To get the best of me intraday,,join us on our sms service at www.twist4nifty.com.