Last week (http://samirmachawe.blogspot.com/2011/12/4700-to-be-taken-out-soonnifty-12-dec.html) I indicated that Nifty will have resistance @ 4920 and Nifty could only make it up to 4910 during the whole week. And what speed it retreated challenging and closing at the 2 years low. I had said this last week that the previous lows would be challenged. I hope you took my advice of not taking any long positions seriously, else you would have burnt not only your fingers, but the whole hand. All indicated down side levels were hit last week.
Nifty view for the current week -
My view that Nifty wont be able to take its head above 5000 soon has gathered further strength now. Going beyond 4820-4840 now looks painful for the index, and any attempts (if any) must be used to open fresh short positions. All attempts to move up shall be met with immediate selling. To me 4880-4900 appears to be ultimate top for Nifty for a few months from here on. The chart for Nifty has worsened much more than one can imagine and any thought of buying into the market must be kept away. The market is currently only southward bound.
A strong resistance zone is evident in the 4800-4880 zone and looks impossible to be conquered immediately. On the downside, its looks like a free slide and everyday a new low on the Index must not be a surprise! Expect Nifty to show 4600/4560/4500 and lower levels soon.
Bank Nifty view for the current week -
Bank Nifty to achieved all downside targets indicated last week. The chart for Bank Nifty is even worse than Nifty and banking stocks are going to be one of the hardest hits stocks in the coming days. This Index hardly has any support to bank on and the only position recommended here is a short position. It faces a huge resistance @ 8450-8550 zone and any attempts to rise to this levels must be used to open short positions only.
The probability of Bank Nifty closing above 8650-8700 in the near future looks almost zero. On the downside expect levels of 7950/7800/7670/Lower in the immediate future.
Caution - Long positions are not at all recommended for the current week and can be suicidal for your money.
Power Investing -
I recommended Buying 4700 Jan PUT around Rs. 50 on 7 Dec http://twitter.com/#!/SamirMachawe/status/144272227230171136. Targets were 150/200. Both targets per achieved in 9 days and it closed at 200 on Friday. That is a growth of 4 times in 9 days. That's Power Investing - That's Financial Abundance. Expect it to extend the gains further to 250/300 this week. To get such recommendations with abnormal returns follow me on Twitter - http://twitter.com/#!/SamirMachawe
First 2 down side targets achieved on day 1. Nifty makes a intraday low of 4555. To targets of 4600 and 4560 get done in 1 day. Expect more in coming days.
ReplyDeleteWhat a bounce back Nifty gave today. It closed @ 4693, up 148 points. The question is however, will this euphoria last? The current rally is likely to fizzle out near about 4720-4740 or 4800-4820. A close above 4820 looks difficult. Fresh short positions can be taken near to the above levels indicated.
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