Bulls Taken Rest and Stock Market Tips

1
Bulls Taken Rest and Stock Market Tips
Indian Stock Market fell on Monday for a
second consecutive session, moving back from
record highs hit in the preceding session,
while blue chips such as Larsen Toubro
chop down on profit-taking while variable
global shares also weighed. The Bombay
Stock Exchange Sensex closes at 22632 were down
by 57 points or fell by 0.25 percent BSE Midcap
index up 0.88 percent while BSE Small cap rose
0.26 percent in trade today. Sensex Major
Resistance on Upside at 22740-22847-22954 Sensex
Major Support on Downside at 22563-22493-22386
Trend Deciding Level at 22670 Nifty Index Major
Resistance on Upside at 6861-6959-7057 Nifty
Index Major Support on Downside at 6708-6653-6555
Trend Deciding Level at 6806 Major Headlines
Godrej Consumer Q4 consolidated net profit at
Rs236 cr Shree Cements falls as Q3 net profit
down 19 (YoY) Siemens Q2 Net Profit at Rs 88.3
cr Vs Rs 29.9 cr (YoY) IDFC Q4 net profit at Rs
258 cr Vs Rs 526 cr (YoY) JSPL arm commissions 2
mtpa integrated steel plant in Oman Mastek US arm
wins 2 orders in North America Sadbhav Engg
starts toll collection at Harakhed, Omerga
Warud check posts Results on Tuesday were Sesa
Sterlite, Shriram Transport, ING Vysya Bank,
IFCI, Dabur India, Federal Bank, lOB, Bharti
Airtel, Jindal Steel Nifty Indices Nifty ended
the day in negative territory after the
formation of two weekly bearish reversal
candlestick patterns. This indicates that bulls
are taking a breather again and Nifty is back
to moving in a range. The new range for
Nifty is 6665-6870 levels, which is derived
from the following observations. One, wave
5 up is still extending and the
current sideways movement is in its wave ii
down. So till the low of 6665 is not broken
the short-term bias shall remain up. Two, the
Nifty has completed its wave 5 up and will bounce
back in its wave B up of the recent
correction. One more thing that we have
observed is that on both the daily and the
hourly chart the Nifty is raising in an
upward sloping parallel channel. Till the
channel holds the overall bias shall remain
up. Bank Nifty, however, managed to close in
green which is quite bullish for the long traders
in the short term. But the index has also
reached the upper end of the triangular
pattern it needs to surpass the same in order
to gain momentum. The daily Know Sure Thing (KST)
has just come into buy mode which is an added
advantage for bulls. The daily KST of the Nifty
is still struggling as it remains in sell
mode, though the prices are making new
highs. This negative divergence is a worrisome
factor for the bulls because this clearly
depicts that the momentum is slackening as
Nifty is inching upwards. This might lead
to a sudden trend reversal. However, in
technical research more weight age is given to
prices. So till the prices
2
dont reverse the trend shall remain up. This
might also turn out to be a case for a reverse
divergence wherein the prices shall move up
slowly and the momentum shall return to buy mode
slowly, generating strength in the ongoing
trend. Hence, we maintain our bias up till
the swings low of 6665 holds or something more
reliable forms In the daily chart the index
is trading above the Twenty-Daily moving
averages (DMA) and the Forty-DMA, ie 6740
and 6600 correspondingly. The momentum
pointer is trading in negative mode with
negative deviation. In the hourly chart, the Nse
Nifty is trading above the Twenty-hourly moving
average (HMA) and the Forty-HMA, ie 6789 and
6804 correspondingly, which are vital
intra-day levels. The hourly impetus indicator
encompass turned negative. The market
duration was turned positive mode today with
740 advances and 736 declines on the National
Stock Exchange. Nifty Future Major Resistance on
Upside at 6847-6870-6892 Nifty Future Major
Support on Downside is at 6799-6774-6751 Trend
Deciding Level at 6822 Bank Nifty Major
Resistance on Upside at 13293-13369-13344 Bank
Nifty Major Support on Downside at
13078-12939-12863 Trend Deciding Level is at
13154 5 Daily Moving Average _at_ 6807 50 Daily
Moving Average _at_ 6481 200 Daily Moving Average
6114
5 Days Relative Strength Index _at_ 45 and 14 Days
Relative Strength Index
59 INDICATES
NIFTY PLACED IN TRADING ZONE, WITH BEARISH
MOMENT. Stock Market Tips Buy Nifty Fut May
Intraday above 6845 sl 6820 Tgt 6860-6885 Or
Sell Below 6800 sl 6825 Tgt 66780-6755 Buy Bank
Nifty May Intraday above 13275 sl 13225 Tgt
13325-13375 Or Sell below 13175 sl 13225 Tgt
13125-13075 Curious Fact In the Assembly
elections held in November-December 2013, when
Nota were introduced, it made an immediate
impact. More than 15 lakh disgruntled voters
exercised the option in the four states that
went to the polls49,730 in Delhi, around 3.56
lakh in Chhattisgarh, 5.9 lakh in Madhya Pradesh
and 5.67 lakh in Rajasthan.