Struggling Bulls!!!!

After falling 19% since closing of Jan 3'2011 (6158) markets still don't show any signs of revival....Have BULLS lost hope??Or they gave up????. Markets are trading well below 100 day EMA Low of 5348.

Nifty has bounced back after making a low of 4720 in past few trading sessions (I would say a 5% recovery) but still charts looks confusing.(sideways). Nifty will see a stronger momentum on the upside if it breaches 5239 and trades strong above the same......For coming few trading sessions I will maintain a cautious approach as the downside is more and the risk return tradeoff may turn unfavorable....

Near Term Support and Resistance
R1 - 5128
R2 - 5335
S1 - 4932
S2 - 4709

Comments

Macro factors at play.....

After making an all time high of 8180, Nifty has been on negative rally. It has broken the upward sloping channel pattern. It is said correction in market are good for a long term bull rally. Considering the outcome of the upcoming election results (in Maharashtra and Chennai) it is advisable to stay cautious till market shows a specific direction. MACD has not showed any trend reversal pattern, RSI has been in 30% range. Changes in the macro economic factors like inflation and earnings growth will also play an important role in setting a new direction for the market w.r.t Short – Medium term movement. Even though Medium to Long term trend is positive, but at current level one can look at sector specific stocks and should have a cautious approach towards market. Disclaimer: - The views expressed in this article/blog are completely personal. This blog or article should not be considered as an investment advice or recommendation to invest. This article/blog is solely...

Aventis Pharma

In past few trading sessions there was a spike in price of share but this was not supported by volume. Indicators like MACD and RSI have turned negative and hence one can start booking profits in the same. S1 1953 S2 1920 R1 1981.5 R2 2017.5 Today’s closing price is 194, it has already broken the crucial support point of 1953, next level to look at is 1920 - 1906. Recommendation:- Book Profits (Sell)

HDFC Bank - Buy - For Short Term

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