markets for 29 june 09
the new week opens with the bullish pre budget week after the expected correction having been over around nifty levels of 4141. Nifty having closed around the support levels of 4230 to 4250 on 3 occasions during the last 7 trading days starting from 18th june clearly suggests that the much feared closing levels of 4117 on 26 may 09 will hold along with intraday levels of 4092 for many many days & weeks to come & only a catastrophic event can breach the level of 4092 in coming weeks.
A decisive cross over of 50 week moving average at 3466 by the 20 week moving average now at 3522 coming from below has occurred for the first time after nearly 5 years. The last cross over having occurred during first week of dec 2004 that led to a further 3 years of bull market till jan 08. Investors should not take this cross over lightly as it is a confirmed long term bull market signal. Coupled with this, the decisive cross over of 200 week exponential moving average at 3636 by the 50 week exponential moving average now at 3686, should not leave any doubt in the minds of bulls for onset of the long term bull market & every correction that one saw last week or may see in mid august should be fully utilized to buy & buy only. Nifty safely trading much above the 50 dma at 4040 & 200 dma at 3366 adds further strength to the index and the only grass made hurdle of 20 dma which now stands at 4444 will be conquered very soon. Most of the daily indicators are showing signs of bouncing back after having bottomed out last week.
for the trading on monday, all technical indicators point to another up move that should take nifty above the initial psychological level of 4400 to meet the 50% fibonacci level of 4418 followed by shivering 20 day moving average counting its days by hiding around 4444 levels. The only thing that can bring down the indices is that, the way nifty has closed at the highest point of the day on friday. It has become a common occurrence now days that in case the indices close at the highest point, the next trading day sees a downward correction & if it closes at the lowest point then the next trading day sees a good up move. In any case any intraday correction is great buying opportunity at this stage.
even if asian markets remain flat or mildly weak at start due to indecisive dow on friday, they may shoot up to close +ve by the end of their trading. With hourly rsi in the chart above indicating further up move, even if indices fall initially, it must be fully used to buy & hold. Nifty has intraday support around 4355 & 4333 levels and resistance around 4424 & 4444 levels above which rocket like up move may be anticipated towards major resistance around 4535 in a day or two. investors must accumulates stocks of inra, oil & gas exploration & power sectors as these sectors are going to be the major beneficiary of the coming budget. Just look for an opportunity to buy and hold boldly the stocks of these sectors on every decline.
morning update will be at 0800am
the new week opens with the bullish pre budget week after the expected correction having been over around nifty levels of 4141. Nifty having closed around the support levels of 4230 to 4250 on 3 occasions during the last 7 trading days starting from 18th june clearly suggests that the much feared closing levels of 4117 on 26 may 09 will hold along with intraday levels of 4092 for many many days & weeks to come & only a catastrophic event can breach the level of 4092 in coming weeks.
A decisive cross over of 50 week moving average at 3466 by the 20 week moving average now at 3522 coming from below has occurred for the first time after nearly 5 years. The last cross over having occurred during first week of dec 2004 that led to a further 3 years of bull market till jan 08. Investors should not take this cross over lightly as it is a confirmed long term bull market signal. Coupled with this, the decisive cross over of 200 week exponential moving average at 3636 by the 50 week exponential moving average now at 3686, should not leave any doubt in the minds of bulls for onset of the long term bull market & every correction that one saw last week or may see in mid august should be fully utilized to buy & buy only. Nifty safely trading much above the 50 dma at 4040 & 200 dma at 3366 adds further strength to the index and the only grass made hurdle of 20 dma which now stands at 4444 will be conquered very soon. Most of the daily indicators are showing signs of bouncing back after having bottomed out last week.
for the trading on monday, all technical indicators point to another up move that should take nifty above the initial psychological level of 4400 to meet the 50% fibonacci level of 4418 followed by shivering 20 day moving average counting its days by hiding around 4444 levels. The only thing that can bring down the indices is that, the way nifty has closed at the highest point of the day on friday. It has become a common occurrence now days that in case the indices close at the highest point, the next trading day sees a downward correction & if it closes at the lowest point then the next trading day sees a good up move. In any case any intraday correction is great buying opportunity at this stage.
even if asian markets remain flat or mildly weak at start due to indecisive dow on friday, they may shoot up to close +ve by the end of their trading. With hourly rsi in the chart above indicating further up move, even if indices fall initially, it must be fully used to buy & hold. Nifty has intraday support around 4355 & 4333 levels and resistance around 4424 & 4444 levels above which rocket like up move may be anticipated towards major resistance around 4535 in a day or two. investors must accumulates stocks of inra, oil & gas exploration & power sectors as these sectors are going to be the major beneficiary of the coming budget. Just look for an opportunity to buy and hold boldly the stocks of these sectors on every decline.
morning update will be at 0800am