Hello Friends,
NIFTY AT 5100+
SENSEX AT 17000+
In last 2 weeks we have seen markets to move in a very volatile way making tough for the day traders & even for the Investors who track markets regularly.
Just last week at Tuesday was at Friends Wedding when the markets tanked the most & tested 4800 for Nifty & Sensex around 16000 lvls lost of Phone calls were received due to humans Panic nature as if its no Tomorrow. Its truly said that " PEOPLE TEND TO BUY MORE AT HIGHER LEVELS RATHER THN TO GET CONVICTION AT LOWER LEVELS ". We mean to say that due to Advisor in nature people dont just let us to enjoy the WEDDING function which generally happens once in LIFE TIME of Friend.
At that time people tell us that markets are going to tumble upto 4400 - 4000 - 3600 lvls & MERA KYA HOGA SAGA & so on & they were so convinced about the fall which some time shaken my conviction for the markets. But today we saw that Nifty made New weekly TOP at 5125 which is exactly the Resistance zone of Current rise & fall. A sign of relief was seen among the Bull traders as it had crossed recent top of 5097 & closed above that. we may see smart Short covering once Spot Nifty closes above 5125 levels moving it for next level at 5165 ~ 5202.
But still the conviction is missing among them & the sentiments are sitting at years low, like Volatility Index SEBI along with Exchanges must start Sentimental Index too which must indicate how people panic at lower levels & chase at higher levels, just kidding.
That day we remember that even MARGIN calls were triggered out at Brokers desk & many peoples stocks were thrown away at cheap prices leaded for distress sell off. The very Next day markets opened GAP up & some stocks which saw distress selling were up +ve by anywhere between 2-5% only. Today is a day when the same Broker is telling that clients to buy at 5100 levels. What a Tragedy or Thriller ???
From Brokers prespective they offer over LEVERAGE to clients for small or cheap Brokerages as they have huge overheads & to overcome that they have to even work at Cheapest or free of cost prices by just collecting the Taxes like STT etc from clients.
OUR ADVISE TO THE RETIALERS / HNI / MNI'S IS DONT ASK FOR OVER LEVERAGES OR OVER EXPOSURE FROM THE BROKERS IF YOU WANT TO SURVIVE AT PANIC TIMES ELSE GET READY TO FACE THE CONSEQUENCES. ALSO SAME ADVISE TO BROKERS THAT IF YOU WANT TO SURVIVE FOR NEXT FEW YEARS IN TO MARKETS THEN DO NOT OFFER SUCH OVER EXPOSURES TO CLIENTS. IF YOUR CLIENT IS FINISHED TODAY BY WAY OF LOSSESS THEN TOMORROW ITS SURE SHOT CALL THAT YOU AS A BROKER ARE GOING TO BE FINISHED. PEOPLE WILL TELL OTHERS THAT WE HEARD A BROKERS NAME xxxx / yyyy BT " ONCE UPON A TIME " .
Anyways after enough philosophy Markets after moving in a very volatile form or rather VERTICAL FALL & RISE is now likely to move in HORIZONTAL Form. This means markets are likely to consolidate at current levels again making few boring days for traders but this could be +ve sign for markets in near term unless lower levels are holding grounds. The consolidation range could be 5005 to 5165 levels of Spot Nifty, kindly adjust Futures Premiums/Discounts.
INSTEAD OF BACK SEAT TRY TO COMMENT ON FRONT SEAT WHICH ARE ALWAYS INVITED BY EMAIL ON : ALLIESFIN@gmail.com
Good Day , Happy Weekend with FAMILY.
AXIT D SHAH
{ Founder & Advisor }
Allies Financial Services
Mumbai, India
Website : http://www.AlliesFin.BlogSpot.Com/
Mobile WAP: http://m.smsgupshup.com/groups/ALLIESFIN
Email Group : http://Groups.Google.Com/group/ALLIESFIN
