iCharts Discussions

[rameshraja]

Market had a good sell off on Friday 09.05.2008 and Nifty futures closed at 4989.70.

On Monday 12.05.2008, my sense is Nifty should take support at 4955 failing which at 50 SMA around 4925. Any closing below this average will spoil the earlier uptrend. Since Moving averages are perfectly intact with proper sequence, I trust market should take support at 50 SMA.

Reliance has single handedly supported the upmove of Nifty futures from around 4625 level to 5270 level, a whopping 645 Nifty points in the last fortnight. There were lot of apprehensions in market about Banking sector about their last quarter performance due to their exposure in Forex loss but results turned out to be a better than what market expected.

As most of the banking sector results are out and clouds of their losses has minimised, I feel going forward, this sector should do well and Reliance will pause for sometime. Stocks like SBI / ICICI / HDFC are highly oversold in RSI 5 period and stochastics indicator, these stocks could come to the rescue of Nifty when RIL starts underperforming.

Airtel buying out of MTN had weighed down on its stock price movement for the last one week, over shadowing its stupendous performance of last quarter result. I think Airtel and R com should comeup along with Banking sector to support the Nifty.

One stock which has shown lot of resilent in the last one week is Gitanjali. The moving averages have come into sequence and the stock has started to moveup from oversold territory. Since rupee also started depreciating, this stock is worth watching for long in one's radar.

SAIL is the stock which is highly oversold and RSI is in Zero for the last couple of sessions. Probably this stock is prone to pullback by 6 to 8% from low.

Last but not least, Tata motors on Friday suddenly showed exorbitant strength towards the close in Futures and there was a sharp upmove. The stock needs to be watched closely as the stock refused to fall and was bucking the downtrend of Nifty.

Disclaimer: The views expressed by me regarding the above are from my little knowledge I have in technical analysis. I would advise you to not to react to my views to your real trades and instead you use your analysis and take decision. Technical Analysis is a subjective matter and I may be wrong in my analysis.

Best wishes and Regards

C T RAMESH RAJA

[mayurnsk]

hello sir

Thats a very good analysis as usual from you no doubt

Mayuresh Jahagirdar
Nasik
Maharashtra

[rameshraja]

Dear Mayur

A small attempt has been made by me when Nifty is at crucial stage. However and whatever tools we adopt to position ourselves with market when it is at vulnerable stage, it always teaches us a bad lessson.

I believe market is always Supreme and it is very difficult to comprehend its move with any rational tools.

Best wishes

C T RAMESH RAJA