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Posts Tagged ‘Union Budget

Markets Today

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Leading up to and during the budget we had a strong belief of increasing volatility & yesterday we saw indices fluctuate by 7% of their value intraday. Nifty almost touched 5500 which indicates a key level for a change in trend, soon thereafter we witnessed a downturn primarily because the gains failed to absorb the selling pressure emerging at higher levels.

I believe the effects of budget will reflect on indices sooner than later but technically indices staying above 5400 and 18000 can be considered as bulls getting stronger.Markets could consolidate above 5225 & below 5500 before we see a big move on either side of  break out of the consolidation range. Further, an upward trend will emerge when Nifty futures manage to cross 5500 as one could see a completion of a bullish technical formation. On flip side the inability of market to stay above 5350/17850 will indicate the continuation of the ongoing down trend.

 

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Written by Rakesh Gandhi

March 1, 2011 at 11:09 am

Posted in Market Watch

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Markets Today

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The first trading session of last week, i.e. Monday, markets witnessed a strong uptrend, which came to an abrupt ending on Friday, the first sign of reversal. Even so, markets managed to close up 2.75% for the week, despite the aforementioned sharp fall on Friday.

We believe that before the Union Budget we could see rising volatility, and I suggest caution in the days leading upto the budget, as there could be false breakout on either side. Based on technical study a fall below 5375 could increase downward pressure, but looking at the long term perspective, a fall only below 5250 will trigger a fresh round of selling. On the upside 5480 will act as near term resistance & above that, the next resistance is at 5525. Based on the short term charts,  I believe during the week swing traders can trade with stop loss of 5375.

Banking stocks are showing good resilience to the current downtrend after making an intermediate low a few days ago. Further if the  Bank Nifty holds above 11000 levels, which was seen for a very short period in last week, we could see strong upward momentum in many banking stocks.

Written by Rakesh Gandhi

February 21, 2011 at 3:37 pm