NIFTY in Range!!!
It was written on the wall, charts clearly showed sideways moves today. There is pretty strong indecision developing in the market. Neither bulls nor bears are sure about the markets direction at present. It is clearly shown in the dearth of volume in all the indexes.
IT though showed positive closing, has given back more than 30% in volumes. What is all this telling us? A clear warning bell, that you should tighten your belts on the long trades. Most of the Index stocks have retraced bearish divergence on their main indicators.
Not only Index futures, many big stocks which lead the indices are also short candidates on first signals. If NIFTY manages to re-test 5400 or beyond once again, that would clearly be the last puff of the bull. BE CAREFULL, bear moves can be very powerful. Take the right opportunity to exit the winning portfolios, need not repent on the lost opportunity later.
On the Sector evaluation TECHNOLOGY stood the gainer, followed by CONSUMER GOODS & CONSUMER SERVICES. The gains were very pretty miniscule. The weakness was lead by the INDUSTRIALS followed by UTILITIES.
On the Industry side it was Paper the biggest loser. What is in store here? Watch BALLARPUR, the fall is a blessing in disguise for some real strong stocks. These stocks have the potential to give good returns even if the broad index fails to.
System trades for the past 3 weeks on the Index futures have given NIL returns, adding confirmation to the sideways move of the market. Only the prudent lot is able to make some gains in the present market, so dont get carried away by the INDEX moves, it has the potential to suck in un-intended small traders.
Fertilizer Industry group showed good gains and our recommendation NFL, has closed with good gains too from very high weakness, of the last session.
SUNDARAM FASTENERS fell short of target by a tick today, but the scrip is strong and will reach target in the coming sessions.
ABGSHIP, ADORWELD and BHARTI closed weak today. Stops Intact.
HINDALCO is a short candidate holding a 20 point potential; take a look at this chart.