Hello Friends,
NifTiee Close 4681
Supports : 4666 / 4646 / 4616
Resistances : 4717 / 4747 / 4777
Nifty closes below 4700 on the second day of the week & this was the cause of concern yesterday we talked about. So 1 day above 4700 & 1 day below 4700, so does this means the rally has ended or the huge profit booking can come ????
The answer is some Profit Booking can come into markets in those stocks or sectors which has given sharp run up in this rally like Auto / Cement / Reality etc, this does not mean end of bull run or so. The stocks or sectors which were laggards in this rally may now participate & help sustaining the markets at this levels & can even take to next higher levels. On last Monday we were also concerned about Reliance Pack stocks ( Index based ) who have not participated into this rally till now & we can see some +ve moves in these stocks. In last 2 days we saw that at some point of time these stocks have lead the markets to make news highs for the year but these stocks individually are far away from the highs.
Today we can see some volatile moves in the markets as Tug of War will be seen between Bulls & Bears for close above 4700 or below 4700. Such war leads to high intraday volatility causing tough time for day traders as sometimes stoplosses are hit & even targets are achieved. Stocks / sectors which we feel can participate if markets close above 4700 is Banking & Capital Goods. The Banking & Financial space is amongst the highest weightage among other sectors in Indices, so we feel that these two sectors can contribute more to the rally but only on close above 4700 for minimum 2 days. The views will be negated if markets does not close above these levels.
Provisional Fund Flow Figures Rupees Crores for 04 August 2009 :
Fii +259
Dii +253
Fii (derivatives) -121
Index Futures -427
Index Options +278
Stock Futures +63
Stock Options -35
Market Volumes below 1Lac Crore mark since last 2 days.
Good Day
Regards,
Allies Financial Services
Mumbai, India
Website : www.AlliesFin.BlogSpot.Com
