Hello Friends,
Friday was a day where majority of the world markets closed in GREEN & its again the time for Nifty to test resistance levels of 2855. We are mentioning these levels since last many days as markets are moving in narrow range since 3 to 4 weeks. Range for spot Nifty is 2700-2850 & Sensex is 9000-9400. As said close above 2855 levels is required for minimum 2 to 3 days for fresh bull run to start else decisive close below 2725 is required for fresh bear run.
In our Fridays views it was mentioned that few stock charts are giving distribution signs at higher levels while for some we need to wait for 2 to 3 days to get the distribution signs confirmed. 1 of them was Reliance Industries as it showed 1st sign of distribution but we asked to wait as it was its 1st day too. On Friday morning we saw that Singapore GRM/Bbl is rising & its close to $8.5 to $ 9 per Bbl which was highly +ve for RIL & we got the results too as the stock rose by 4% & managed to close at 1345.
Niftie Intraday Levels:
Close 2843
Supports : 2825 / 2810 / 2770
Resistance : 2855 /2875 / 2920
PROVISIONAL FUND FLOW FIGURES IN RUPEES CRORES FOR 6 FEB 2009
Fii +117
Dii +132
Fii(deri) +439 (net)
Index Futures +376
Index Options +250
Stock Futures -243
Stock Options -56
Total Fii Open Interest at EOD is 32518.
Markets are likely to open +ve as backed by +ve SGX Nifty & Other Asian Markets. But will Markets sustain at higher resistance levels is big QQQ? Also we would like to tell you that stay away from small & mid cap stocks & please control your emotions by not buying these stocks due to sharp spike in the prices. We know many people tend to buy stocks at higher levels for trading purpose without stop loss & the same trading scrips becomes their Investments scrip 4 long term as they are not following trading rules of stop loss & also the entry level is too late.
Recently many such stocks are giving wild moves as they move up by 25 to 50% in a day for no reasons. Think that is their Fundamentals change overnight or is this pure Trap Speculation ? Many common feature in these wild scrips are they are being moved out of Derivaties segment & for some FEB Expiry is last month or for some March is the last one. Also from March Contracts LOT Size will increase & so will be the risk for traders of Derivatives segments. Also Warren Buffet Says " DERIVATIVES ARE FINANCIAL WEAPONS FOR MASSIVE WEALTH DESTRUCTION "
Regards,
Allies Financial Services
Mumbai, India
Website : http://www.AlliesFin.BlogSpot.Com/
Email Group : http://Groups.Google.Com/Group/AlliesFin
