NIFTY FIFTY

[Saint]

yep Amit on yesterday's highs.......now 2600 on the Nifty futs!

 

[AMITBE]

Only a few minutes left for now, and would be great to keep above 2586.
It would be a great close.
Suddenly the money has shifted to the index stocks. The others doing well have selling pressure.

 

[AMITBE]

ONGC is kicking up a storm.
And hit 2600 on the NIFTY!

 

[Saint]

ONGC is kicking up a storm.
And hit 2600 on the NIFTY!

Looks like a close above 2600!

 

[AMITBE]

Looks like a close above 2600!

Last traded price 2602.80!
The closing would be a little less, but hey, Great Show!
Thanks mainly to a late kick *** move in ONGC...up almost 3.5% at 1078!

 

[AMITBE]

2586 taken out, 2600 tested, oil prices under check, strong funds flow continue, all the bits and pieces are in place.
So, whats wrong with this picture then?
Volume and market breadth.
Unless these two components are included in the rally, its always going to remain rather like a three-legged race, if Im using the expression correctly.
Short coverings have moved things along, and will do so today as well. Even so, the proceedings may not run smoothly, being the last day of the contracts. Theres been a lot of roll over into the next month but here too the volume is low.
All one can say for now is that the sentiment has improved greatly, and lets hope the participation improves further.
Should some of the index counters that made sharp gains yesterday come in for profit booking early on, expect a fair deal of choppiness.

The levels.
2580-2586 are likely to give short term support to the down. 2586 is vital today.
Below this, 2572 has been strong.
To the up, 2615-2630 is the range.
Will follow along.

 

[Saint]

2586 taken out, 2600 tested, oil prices under check, strong funds flow continue, all the bits and pieces are in place.
So, whats wrong with this picture then?
Volume and market breadth.
Unless these two components are included in the rally, its always going to remain rather like a three-legged race, if Im using the expression correctly.
Short coverings have moved things along, and will do so today as well. Even so, the proceedings may not run smoothly, being the last day of the contracts. Theres been a lot of roll over into the next month but here too the volume is low.
All one can say for now is that the sentiment has improved greatly, and lets hope the participation improves further.
Should some of the index counters that made sharp gains yesterday come in for profit booking early on, expect a fair deal of choppiness.

The levels.
2580-2586 are likely to give short term support to the down. 2586 is vital today.
Below this, 2572 has been strong.
To the up, 2615-2630 is the range.
Will follow along.

Very nice write-up,Amit..............that is the biggest worry,this lack of volume.

 

[AMITBE]

Very nice write-up,Amit..............that is the biggest worry,this lack of volume.

Thanks saint...yes, the volume continues to confound. What could be the resaon I wonder. Specially in the cash segment it's abysmal, with the derivatives proping it up.
2620 now has become the magic numer for the NIFTY.
This was tested a while ago quickly.
For the continuation of this rally, we need a cross-over here with much better volume.
At these dizzy hights the stablising foundation is VOLUME.
2610-2615 are short term supports.

 

[AMITBE]

The NIFTY has reacted at 2634 sharply.
The malady of low volumes is likely to cause some sharp volatility witnessed a week ago, as again it's shooting up without consolidation and a broad based participation.
I have close to fifty scrips on my watch list and the volumes are noticably low and the price action flat to beaish on a good number of these.
For this reason, despite the high index levels, making fresh calls or taking new positions is hazardous.
2620-2622 look firm as supports for now.

 

[Saint]

The NIFTY has reacted at 2634 sharply.
The malady of low volumes is likely to cause some sharp volatility witnessed a week ago, as again it's shooting up without consolidation and a broad based participation.
I have close to fifty scrips on my watch list and the volumes are noticably low and the price action flat to beaish on a good number of these.
For this reason, despite the high index levels, making fresh calls or taking new positions is hazardous.
2620-2622 look firm as supports for now.

Amit,

I am sure CNBC must be going all excited by now in India.......amidst all the euphoric talk of 9000 and 10000,great words of caution ,my friend........

Great stuff.......and keep em coming!!

Saint