World in a tizzy and markets reacting sharply- nifty down 2 percent on Friday and losing 3.35 percent on a weekly basis. Volumes on the exchanges were upwards of 2 lac crores which is a bearish sign-dropping with high volume. Month on month also has receded into negative territory. Itâ€™s a no call zone for nifty-supports are pegged at 5990 â€“exactly a percent away-I am writing this on Sunday evening when Europe and Dow have closed poorly and crude has taken a lashing. Oscillators are moving into oversold zone but they do not matter when world situations create panic- China, Dubai and Ireland together with poor IIP numbers - I think for all of that and Powergrid FPO sucking liquidity we did ok. Would watch for a day to make a view on Nifty since it can go either way - however if 5990 were not to hold then decision to drop stocks, nifty would have to be made sooner-a bounce to 6150 is an equal probability. It would be better to trade individual stocks than nifty.
Coming to individual stocks and sectors â€“almost all took the fall on the chin- SBI the banking leader fell sharply this week- metals fell sharply on china concern- trading high betas like sugar and textiles gave up sharply- as usual FMCG and Pharma acted as defensive staying in flat to mildly positive territory
Looks like some high degree volatility maybe on the cards- it creeped in a week before Coal India IPO and I think will carry on till January- but looks like this is a consolidation on which will form a base for a new breakout to new all time highs- donâ€™t know the bottom â€“but will buy on dips-maybe tom is a good day to deploy some funds
Stocks looking good-Sintex, Bilcare, Shree Cement, Lupin, Fact, RCF, Autoline, Adani Power and Ruchi Soya
Needless to say rest of market looks weak-bad results on rcom and rcap may weaken adag. Tata steel result impact would have to b considered .soft commodities may b bought on further dips
Nifty day levels-R2: 6256, R1: 6163, S1: 6018, S2: 5964
Nifty moving averages- SMA -10 -6181, 20-6115, 50-6007, 200-5402
Nifty moving averages- EMA -10-6172, 20-6136, 50-5990, 200-5480
Wishing you a safe week!
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