BTT Weekly Forcast
Indian Market Averages
Nifty
The monthly chart of Nifty is non-trending and is gaining bearish strength, so there is no chance of market turning bullish in the near term. Weekly chart is still bearish but has managed to stay within previous low levels. With the indicators showing strength on the bullish side, there are chances that the tide may change towards a small bullish rally, but the index has not yet confirmed to change direction. While it is expected to happen soon. If the rally is going to be persistent with the New Year euphoria there are chances to reach 5100 resistance levels. But, investors please do not get taken aback that the market has resumed its bullishness, it is a relief rally which will give more opportunities for short traders. One more valuable short trade can happen in the index in the coming weeks. Daily charts are trending and has formed a double bottom on the indicator, the next low on the index will give the necessary bullish divergence and that will give strength to get the most needed rally on the index.
NIFTY MID Cap, This index seems to have to bottom; it is just reaching for new lows both on the index as well as the price levels. The next support levels are at 5850 which is close by and may have a turnaround from there.
NSEIT, this index is continuing its sideways range and going narrower every date, Volume is also getting lower as the range of the day is getting narrow. There is a likely break out soon, and which side it will be is to be seen, with the broad market getting more and weaker, the break has the probability of breaking down.
NSE500, This index is again reaching for new highs with the indicator too recording lows. Histogram is retracing bullish divergence and we believe the divergence will fail.
Exchange Sectoral Indices
BSE REALITY was likely to bottom out last week, but now it seems that it is also adding more bearish strength. The way the trend is opening out, it seems that the index will see some more very strong bearish moves.
PSU Index is just a falling knife, almost all the supports a have been broken and the nest one is at 6197, with the power that the index is being beaten down, the ext support is not likely to hold.
NSE REALITY is showing god bullish strength, but the patterns in price do not indicate any immediate turn of events, it may have a brief rally but break down at the value zone, in case of multiple divergences the signal strength with will and will move into non- trending zone.
BSE POWER is again another index which is very strong on the bearish side. Short toper stocks when the index reaches 2144-1988
BSE OILGAS, though the Index is reaching for new lows, indicators are getting stronger, but there is no indication of an uptick to turn bullish, this index may need a strong watch for trades in it. IN case the Index turns bullish with a low range bar at the bottom of the price move. There is a chance for reaching 8157 on the index.
BSE METAL index is going flat but the price moves are suggesting that there mere room for bearishness. On the event of a recovery to value zone short the weakest stock in this category. As the site is at present getting live, we are unable to list out the weak or best stocks in each index category. Very soon our news letter will have stocks that are favorable candidates for short and long in line with Index performance.
BSE HEALTHCARE is not trending and the formation seems like it will not go into any kind of trend for some more weeks to come. Among the new lows Pharma industry is the only industry group that records higher number of new lows every day.
BSE FMCG, is holding on to the sideways pattern with the 3951 support, this index has already retraced strong bearish divergence, on the break of support the index will turn bearish. Hindustan Lever is the only stock that is worth watching for entries on the long side.
BSE into is into a very broad side ways range with 7940-8974 range. This industry will keep oscillating between these ranges unless there is a narrow pattern and a break on with side, as of now the break will be only on ht e bearish side.
Bank Nifty, This index is one of the worst performing index in our country today, it has bleariest all supports and is continuing to do so regularly. The next support on the Index is at 7100.00. This index has lost more than 40% of its value in a year’s time; this is one of the best sectors for any economy. Why this has happened? It is not the Government or any bureaucracy to blame, it is we who have to blame. We have used the facilities of this sector to the maximum disadvantageous ways. It was exploited to such an extent now they are unable to collect the amount lent to their borrower. And most of the borrowers are bankrupt now. And to top that we have our beautifully elected people to rule us, who know only to loot and nothing else. When administration is like this, Industry will naturally sink. Every day the number of stocks hitting new los is top in the public sector industry group. Though they may not go bankrupt, because our so called netas will bring in some money from unscrupulous taxation policy and fill the gap. How long will this drama go on, one the day is not far away for India to become on Greece, Poland, Italy or etc.,
The rightful citizens we have awake ourselves, enough that we have slept putting the blame or our politicians for the crap. The so called politicians are elected by us, does that mean we are all corrupt. No, it is not that, we are lazy to the core; we do not want to wait a little while, to get out the corruption. You may not be able to eradicate corruption over night, but with sincere effort from every citizen in small ways wherever possible, we can bring down corruption. Let us give us children a wonderful world with a lot of love and affection..
BanK Nifty
Bank Nifty managed to stay within previous weeks range but is increasing bearishness on the indicator. Support still remains at the 7325 levels, on the reach of value zone we will have a wonderful short trade in this Index, please do not miss this golden opportunity of easy money. Monthly chart is off course non-trending but weekly is in a fantastic bearish trend. Daily charts are also trending but the pattern clearly indicates show that it may turn into a sideways pattern soon on the daily charts.
Industry Groups
Cement Major, Personal care, Auto 2 & 3 Wheelers, mini Cements and Contraceptives are the leading industries today. Now we shall go to the order from the bottom as the market is bearish, Heavy Engineering, Civil Construction, Computer accessories, sugar etc.,
In the Cement Major Industry group, ULTRATECH is still leading the pack, but is not so very strong. Whereas in the Personal care Industry, HU+INUNILVR is ruling very strong and has a potential for a good trade in it on the daily charts. In the Auto 2&3 Wheeler Industry BAJAJ-AUTO is the only stock that is holding god, and even that has broken the back of the bone on it histogram. Cement – Mini is one of the industries which is leading today but the only constituent in the industry SAGARCEMENT is not having a good chart pattern.
New High/ New Lows
New high new lows for Friday’s close does not show any better picture apart from a slight improvement. The count is 2/97, off course new lows registered is getting reduced. This also indicates that the market is trading in themed range. The Industry that registered higher number of new lows this week are 10/34 in the Civil Contracting Industry, 9/24 stocks in the Public Sector banking Industry. Public Sector Banks Industry is one of the worth performers on all fronts, it seems like the whole Indian community has lost total trust on the public banks. This data is worth thinking about
Expected trading opportunities for this week.
The week gone by saw lesser activity and hence none of our entries were filled. So all the levels have changed for this week. Since are trading the pull backs on the highly strong patterns, we have to wait with patience for the charts to give us the right opportunity to either go long or short. Please keep the stocks on your watch list and when the trigger comes through place your entries. Once again our very sincere warning even for seasoned traders, please do not operate without stop losses. Protect your capital first. There are umpteen numbers of opportunities the markets offer us often, if we are in a hurry we will only end up losers.
Again we are giving entries in 2 stages, first entry is as the stock approaches the value zone and then we add on to overage our position but keep the stop same of the first entry. By no means stop will move against the position, it will always be either stagnant or move in the direction of the trade. All short trades are based on futures positions and hence brokerages are calculated as per futures operations.
Once more request, as much as possible please keep risk per trade within 1% of your capital, have adequate to trade positions. We have listed positions based on their reward to risk ratios, always try to get the trades with the highest reward to risk, this will ensure your account to be positive even in the event of having few losing trades. All the calls given here are based on few advanced calculations and probabilities; there is no guarantee that all the trades will be winners.
In case users have doubts about how to trade the positions and manage risk, please feel free to write to us. Almost care has been taken to ensure that the nest of trading opportunities offered in our calls. Bravisatemple tree has launched a newly advanced site with runs huge proprietary calculations to rank Earnings growth, Price Relative strength Growth, Industry group ranking, Mutual Fund ownership, Sales and net profit growths to facilitate users in finding the best stock of their choice to invest it. Many of the concepts used on the site are highly useful in stock selection, but are very much new to the average user. All kinds of doubts regarding the usage of the site can be clarified through mail at the above given ID.
This weeks trades
Long
Symbol Entry 1 Entry 2 Stop Target R/R
KALECONS 92.46 97.06 94.76 122.55 7.16
PATNI 380.77 404.02 392.40 506.71 6.20
MICROTECH 137.13 143.17 140.15 166.44 4.84
RAJTV 63.39 68.27 65.83 80 3.78
HINDUNILVR 358.06 379.52 368.79 432.05 3.56
SHREECEM 1923.59 1993.98 1958.79 2181.90 3.18
AMTEKIND 70.76 86.95 78.86 106.95 2.59
Shorts
TITAN 199.69 191.22 195.46 158.72 7.64
RANBAXY 467.92 444.26 456.09 377.98 5.77
SIEMENS 783.25 735.10 759.18 618.80 5.09
PNB 942.58 888.93 915.76 771.79 4.63
BHEL 314.09 285.57 299.83 225.18 4.59
AXISBANK 1062.00 979.89 1020.95 808.35 4.51
BANKNIFTY 9405.84 8876.73 9141.29 7791.00 4.38
ICICIBANK 845.84 777.41 811.63 654.40 3.95
LT 1379.89 1242.66 1311.28 1008.40 3.81
SUZLON 33.18 26.64 29.91 16.25 3.63
ADANIENT 456.12 385.77 420.95 276.60 3.54
SESAGOA 210.78 186.55 198.67 150.71 3.38
STERLITE 121.06 106.97 114.02 86.35 3.35
HDIL 96.65 75.15 85.90 49.40 2.86
NIFTYFUT 5050.13 4817.00 4933.57 4531.19 2.78
BraViSaTemple Tree wishes all the traders and wonderful and prosperous New year 2012 with a lot of pleasant surprises.