Stock Market status for next week and 16th Aug'10

Trader can follow these Tips to Trade and make profit from its trading.

The new week opens on monday after the independence day, hopefully freeing many traders & investors from the dow phobia, that has entangled may investors & traders across the country for many many years, putting a brake to their freewill to trade freely and carry overnight positions. having fully realized that dow presently is trading around 10300 levels which is much lower than 1999 june levels of 11000 when nifty that time was trading around 1100 levels, traders & investors across india now have fully understood the game plan of dow operators and have started to pray for a big overnight fall in dow at least once or twice in a week so that they can enter long positions on a big gap down fall induced by overnight dow.

In case dow fails to rise and stay above 11000 levels in coming days, traders & investors must be absolutely sure in their mind to see dow breaching 10000 levels to go & test march 2009 lows of 6500. so, every overnight dow induced gap down fall must be accepted as a god sent opportunity to go long and buy fundamentally strong stocks in the beaten down sectors of oil & gas exploration, metals, pharma, auto & banking for excellent gains in next few months of the present long term bull market that has started since march 2009.the result season which had started poorly with infy & reliance results, have ended well with astounding results by other index heavies like sbi, tata motor, tatasteel & bajaj auto and many other a & b group stocks to compensate for the not so good results of infosys & reliance industries. during the coming week, although indices are again going to be range bound with nifty remaining within the high of 5500 to 5545 & low of 5404 to 5383, many individual stocks are going to be in the limelight with big moves on either side.

For mondays trading one can expect a flat to mildly weaker opening. nifty had closed at 5452 on friday and a possibility of another range bound day within the tight range of 45 points with 5434 as the low and 5477 as the high is quite possible. however any side breach and sustaining out side the range may see some big move in the direction of breach. reliance is looking for an opportunity to at least move up above the face saving level of 1000, however it is paralyzed to such an extent that every rise above 1000 will meet with heavy liquidation by long term holders to quietly quit reliance & enter cairn india, which is a much better stock in the same oil & gas exploration sector. monday also may see continuation of buying interest in tatamotors, tatasteel, sbi & bajaj auto to salute in response to their much better than expected results. any intraday decline in these stocks along with some fundamentally strong pharma & biotech stocks may be bought by medium to long term investors for good returns.

For intraday trading on monday, nifty spot finds initial support around 5439 to 5434 levels which bulls must protect at any cost, failing which nifty spot may fall like a stone towards 5404 to threaten the critical 5400.similarly on the higher side nifty finds initial resistance around 5464 to 5470 & a decisive breach of 5470 may see massive short covering by the bears to see nifty shoot past fridays high of 5477 towards 5500 to badly expose itself to another wave of massive shorting by the waiting bears.

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