INTELLECTUAL TRADING

Nifty weekly performance  (April 25, 2016 – April 29, 2016):            Indian stock markets ended the week on a negative note. For the week, the BSE Sensex was down by 0.9% and the NSE Nifty was down by 0.6%.             These losses follow the sharp surge of the past few weeks. The Sensex as well as the Nifty have notched gains of 13% and 14% respectively since Feb 29. The mid and small-cap indices that and are up 16% and 17% respectively. Market participants are now gauging the strength of this rally and whether it will continue.          The index opened the week on a slightly bearish note, moved up in the middle and slipped back again in the end. It ended the week with a loss of 0.63%. During the week the level of 8,000 again acted as a resistance. On the lower side, it found support around 7,800. This range seems to be holding up the index for the time being. We will have to wa...

SML Isuzu Ltd  :  Re commanded  on 6th April at 818 levels , CMP 954 - 16.6 % up  Today made high 969 our target is 970. Short term traders exit from current positions  Long term traders change stop loss to 909 

The heat is dreadful these days. It's almost unbearable. But you can always rely on capitalists to try to make money in any situation, even the unfortunate ones. And so they're at it again. This time with stocks of companies that make room air conditioners (ACs). The heat waves and rising temperatures of summer have sent these stocks soaring. They've gained up to 24% in just one short month. Investors seem to be betting on these companies doing brisk business: But there's a problem. Some summers will be good, some bad. This one is turning out to be hot as hell, and thus good for AC companies. Last year, it rained early, and thus was a bad season for them. This surely does not mean that investors mark up or down their estimated value of the business. Because in the larger scheme of things, a good summer is as much a part of the air conditioning business as is a bad one. Here is B Thiagarajan, executive director and president of Blue Star's...

Nifty weekly performance  (April 18, 2016 – April 22, 2016):             Indian indices clocked marginal gains during the week. For the week, the BSE Sensex was up by 0.82% and the NSE Nifty was up by 0.62%. During the week, India's third-largest software services exporter, Wipro Ltd, announced its results for the fourth quarter and the full fiscal year 2015-16.The index opened the week with a gap but has failed to make any headwind after that. It ended the session on a very flattish note every day this week. This indicates that the index may be losing out on momentum as the resistance at 8,000 kicks in.  3 Day SMA : 7908 & 15 Day SMA 7742 . Nifty Prediction for Week  (April 25, 2016 – April 29, 2016): Support for the index lies in the zone of 7850 where 200 Daily SMA is lying. Minor support for the index lies in the zone of 7700 to 7750 where the index has opened gap up on 13/04/2016. If the index manages to close below these...

Nifty weekly performance  (April 11, 2016 – April 13, 2016): Indian markets flourished in the green during the week. For the entire week, the BSE Sensex was up by 3.8% and the NSE Nifty was up by 3.9%.  The bulls snapped back into the ring and have pushed the bears in a corner after almost a 300-point rally in the Nifty in just 3 days. The index finally closed above the 7,800 levels with good volumes and are looking very strong at this point of time. The above surge came on the back of a slew of good news - forecast of an above-normal monsoon, dipping consumer price inflation and a rising Index of Industrial Production (IIP).  Nifty Prediction for Week  (April 18, 2016 – April 22, 2016): Support for the index lies in the zone of 7500 to 7550 from where the index has broken down after making the double bottom pattern and 100 Daily SMA is lying. If the index manages to close below these levels then the index can drift to the levels of 7400 where the inde...

Nifty weekly performance  (April 04, 2016 – April 08, 2016)): Indian indices ended the week on a negative note. For the entire week, the BSE Sensex was down by 2.4% and the NSE Nifty was down by 2%.  Bank Nifty nosedived 3.4% as the Reserve Bank of India (RBI) cut its repo rate by 0.25%.  The index lost its momentum as it hit multiple resistances. It has closed below the 13 EMA for the first time after a month. It has also closed below the 7,600 level. It seems that the index is now trapped in a broad range of 7,800 to 7,400. Trading activity is likely to remain lackluster next week as traders will want to avoid taking any major bets ahead of the long weekend. Nifty Prediction for Week  (April 11, 2016 – April 13, 2016): Support for the index lies in the zone of 7500 to 7550 from where the index has broken down after making the double bottom pattern and 100 Daily SMA is lying. If the index manages to close below these levels then the index can drift t...

SML Isuzu Ltd :  Strong Buy with Target 970 with Stop Loss : 801 ,  CMP 818 Holding period of 2 to 5 weeks. SML Isuzu Ltd  corrected from its October 2015 high of 1,452 to its February 2015 low of 638. It is forming an ascending triangle pattern on the daily charts. The base of this pattern is placed around 675 while the neckline of the pattern is placed at 825. The depth of the triangle is worth Rs 150 (825-675). Stock broke out of the neckline with very good volumes.  When you add up this perpendicular distance to the breakout level of 825, you get a possible target of 975.  1) Bollinger band started squeezing upwards - Indicates the start of up trend 2) 20 Day SMA : 782 , 50 Day SMA : 801 , CMP is 848 - confirms the Up Trend 3) MACD has entered the positive territory after almost 5 months 4) RSI is 63.637 , placed in the bullish zone. Disclaimer -PLEASE NOTE THAT THESE VIEWS AND CALLS ARE AS PER THE ANALYSIS OF CHARTS AND MAY...

1 – Overview For a market participant transacting just based on company specific information may not be sufficient. It is also important to understand the events that influence the markets. Various outside factors, economic and/or non-economic events have a key impact on the performance of stocks and markets in general. In this chapter we will try to understand some of these events, and also how the stock market reacts to them. 2 – Monetary Policy The monetary policy is a tool with which the Reserve Bank of India (RBI) controls the money supply by controlling the interest rates. They do this by tweaking the interest rates. RBI is India’s central bank. World over every country’s central bank is responsible for setting the interest rates. While setting the interest rates the RBI has to strike a balance between growth and inflation. In a nutshell – if the interest rates are high that means the borrowing rates are high (particularly for corporations). If corporate can’t borrow ...

1) Nifty has been moving in this downward sloping falling channel over a year ,  Nifty has formed support as well as resistance in multiple locations of this channel. Currently Nifty is at upper edge of this channel & may face strong resistance . 2) Also Nifty is near 52 week EMA [equal to 200 daily EMA ] becomes strong resistance. 3) Last week nifty formed Hannging man candle stick [A hanging man is a bearish candlestick pattern that forms at the end of an uptrend. ] 4) Weekly RSI is at 50 levels , Recently Nifty has reversed its direction whenever weekly RSI is at 50. All above 4 things suggests - Nifty may halt bull run and reverse from here.

Amid higher market uncertainty, the price of gold is up by 16% year-to-date – in part due to NIRP. History shows that, in periods of low rates gold returns are typically more than double their long-term average. Investors should consider doubling their gold allocations amid negative interest rates,says World Gold Council(WGC). The world has entered a new and unprecedented phase in monetary policy. Central banks in Europe and Japan have now implemented Negative Interest Rate Policies (NIRP). The long term effects of these policies are unknown, but WGC see discouraging side effects: unstable asset price inflation, swelling balance sheets and currency wars to name a few. Amid higher market uncertainty, the price of gold is up by 16% year-to-date – in part due to NIRP. History shows that, in periods of low rates gold returns are typically more than double their long-term average. “Looking forward, government bonds are likely to have limited upside, due to their low-tonegative yields...

Nifty weekly performance  (March 28, 2016 – April 1, 2016): Indian indices ended the week on a negative note. For the entire week, the BSE Sensex was down by 0.3% and the NSE Nifty was down by 0.1%. On Friday, the Indian equity markets finished their day on a weak note, despite markets correcting from their lows in the second half. At the closing bell, the BSE Sensex closed lower by about 72 points, while the NSE Nifty finished lower by 25 points. The index started the weak on a jittery note but held above 7,600 and ended the week on a flattish note. And until it moves decisively out of this range, the choppy action will continue.  Traders should take cues from the RBI policy meeting scheduled early next week.   Nifty Prediction for Week  (March 21, 2016 – March 23, 2016): Support for the index lies in the zone of 7500 to 7600 from where the index has broken down after making the double bottom pattern and 100 Daily SMA is lying. If the index manages t...