• V ol. 4 • Issue : 15 • Date : 06-06-2011 to 12-06-2011 • Editor : Narendra Joshi • Mobile:9825065387• Land line 079 274 51449 • •• Address : 115/991, Nirmal Apar tment, T elephone Exchange Road, Naranpura, Ahmedabad -380013 • Phone : 274 51449 •• 3 3 3 3 3 Buy & Sell Buy & Sell Buy & Sell Buy & Sell Buy & Sell Major factors to watch: Diesel price hike and South West Monsoon… 9 9 9 9 DOWN trend started from 5600 for target 4100 17 17 17 17 17 Point BlankPoint BlankPoint BlankPoint BlankPoint BlankMarket thought inflation assumed 04/06/2011. W E E K E N D VOLATILITY. The market went up as there was a bullish Takuri Line formation in both the indices, last week. But the indices were not able to sustain at higher levels and gave up a major part ofthe gains on Friday. The volatility witnessed at higher levels was because the different timeframe trends were not in unison. Only short term trend had turned up and the medium term and long term trend were still down. As a result the medium and long term trends tried and impose themselves on the short term trend and that explains the volatility witnessed by Nift Nift Nift Nift Nift y Sutra y Sutra y Sutra y Sutra y Sutra Gold - Silver, Copper , Nickel, Lead, Zinc, Crude Oil-Natural Gas. Intraday & Positional Call. 89059-89050 Each n Every Call with strict SL and Proper Follow up. Special Services offered for Big Traders. ACCURACY ABOVE 90 % ACTUAL MERIT STOCKMERIT STOCKMERIT STOCKMERIT STOCKMERIT STOCKwww.meritstock.com For Past Performance and other details Pls visit : Nif Nif Nif Nif Nifty - Bes ty - Bes ty - Bes ty - Bes ty - Best Of t Of t Of t Of t Off f f f fer F er F er F er F er Fir ir ir ir irs s s s st time f t time f t time f t time f t time for Big and small tr or Big and small tr or Big and small tr or Big and small tr or Big and small trader ader ader ader aders... s... s... s... s... Open an ACCOUNT with us and EARN daily 20-30 Points. N No A o A o A o A o Advisor dvisor dvisor dvisor dvisor y Char y Char y Char y Char y Char g g g g ges.. Its FREEEE........ es.. Its FREEEE........ es.. Its FREEEE........ es.. Its FREEEE........ es.. Its FREEEE........ A A A A Accur ccur ccur ccur ccuracy suc acy suc acy suc acy suc acy such t h t h t h t h that u ha hat u ha hat u ha hat u ha hat u ha v v v v ve ne e ne e ne e ne e ne v v v v ver f er f er f er f er find bef ind bef ind bef ind bef ind befor or or or ore.. A e.. A e.. A e.. A e.. Abo bo bo bo bo v v v v ve e e e e 95%.. T 95%.. T 95%.. T 95%.. T 95%.. Tr r r r r y & Belie y & Belie y & Belie y & Belie y & Belie v v v v ve. e. e. e. e. Eac Eac Eac Eac Each n Ev h n Ev h n Ev h n Ev h n Ever er er er er y Call wit y Call wit y Call wit y Call wit y Call with s h s h s h s h str tr tr tr trict SL and Pr ict SL and Pr ict SL and Pr ict SL and Pr ict SL and Proper F oper F oper F oper F oper Follo ollo ollo ollo ollo w up. w up. w up. w up. w up. Call & Put Op Call & Put Op Call & Put Op Call & Put Op Call & Put Option, S tion, S tion, S tion, S tion, St t t t toc oc oc oc ock F k F k F k F k Futur utur utur utur utures ar es ar es ar es ar es are Ano e Ano e Ano e Ano e Anot t t t ther Ser her Ser her Ser her Ser her Ser vices vices vices vices vices Offered. Offered. Offered. Offered. Offered. MERIT STOCK89059-89050 www.meritstock.com WEEKLY REVIEW CFT, MSTA (Londen) A professional Technical Analyst and a Trader based in Bombay & Runs his own consultanc y http :// www.prakashgaba.com Email:[email protected]PRAKASH GABA Tel : 093222-10907 Continue on ......7 ASTROLOGY & STOCK MARKET MOBILE : 09811738366 - 09810018438 SATISH GUPTA http://www.astrostocktips.in e mail:astrosto cktips@redif fmail.com W W W W Weekl eekl eekl eekl eekl y R y R y R y R y Re v i e v i e v ie vie view fw fw fw fw for the or the or the or the or the W W W W We e k ee k e e k eek ee k J J une 6th to 10th 2011 une 6th to 10th 2011 une 6th to 10th 2011 une 6th to 10th 2011 une 6th to 10th 2011 TEXTILE, Paints and Watches sectors TEXTILE, Paints and Watches sectors TEXTILE, Paints and Watches sectors TEXTILE, Paints and Watches sectors TEXTILE, Paints and Watches sectors will get astrological suppor will get astrological suppor will get astrological suppor will get astrological suppor will get astrological suppor t t t t Nifty: (5517) Sensex: (18376) 3.6.11 We said ‘Technically the bar generated for the week is suggestive ofa possible up move or a limited downside bar…and if the up move happens then the next logical technical target could be 5564-5637 in days to come’ The market unfolded as expected climbed up but could not sustain due to selling pressure and found resistance around 5600 regions to close positive but flat... Technically the bar generated for the week is suggestive of a flat market ahead and can be considered up as long as 5450 holds but the market certainly cannot be considered as up until it takes out 5600 with force. From a trading point of view I would trade long as long as 5450 holds. Continue on ......10 Weekly Stock Market Prediction 6 th June – 10 th June 2011 Weekly planetary position: During the week, Moon will be transiting in Cancer, Leo & Virgo. Sun, Mercury & Venus in Taurus. Mars & Jupiter in Aries. Rahu & Pluto in Sagittarius. . Ketu in Gemini. Saturn in Virgo. Neptune in Aquarius. Lord Rahu & Ketu Dev will shift to Scorpio & Taurus on the afternoon of 6 th June 2011. B E CAUTIOUS: Planet RAHU & KETU will be changing the house from 6th June 2011. They stay in one house for 18 months. They are signaficators for speculation & trading in Stock Market. Many MARKET GIVES UP WEEKL Y GAI NS
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Point Blank Point Blank Point Blank Point Blank Point Blank
Market thoughtinflationassumed
04/06/2011.W E E K E N D
VOLATILITY.The market went up
as there was a bullishTakuri Line formation in
both the indices, lastweek. But the indiceswere not able to sustainat higher levels andgave up a major part of the gains on Friday. Thevolatility witnessed athigher levels was
because the different
timeframe trends werenot in unison. Onlyshort term trend hadturned up and themedium term and longterm trend were still
down. As a result themedium and long termtrends tried and imposethemselves on theshort term trend andthat explains thevolatility witnessed by
NiftNiftNiftNiftNift y Sutra y Sutra y Sutra y Sutra y Sutra
For Past Performance and other details Pls visit :
NifNifNifNifNifty - Besty - Besty - Besty - Besty - Best Oft Oft Oft Oft Offffffer Fer Fer Fer Fer Fiririririrssssst time ft time ft time ft time ft time for Big and small tror Big and small tror Big and small tror Big and small tror Big and small traderaderaderaderaders...s...s...s...s...
Open an ACCOUNT with us and EARN daily 20-30 Points.
NNNNNo Ao Ao Ao Ao Advisordvisordvisordvisordvisor y Char y Char y Char y Char y Charggggges.. Its FREEEE........es.. Its FREEEE........es.. Its FREEEE........es.. Its FREEEE........es.. Its FREEEE........
AAAAAccurccurccurccurccuracy sucacy sucacy sucacy sucacy such th th th th that u hahat u hahat u hahat u hahat u ha v v v v ve nee nee nee nee ne v v v v ver fer fer fer fer find befind befind befind befind befororororore.. Ae.. Ae.. Ae.. Ae.. Abobobobobo v v v v veeeee
95%.. T95%.. T95%.. T95%.. T95%.. Trrrrr y & Belie y & Belie y & Belie y & Belie y & Belie v v v v ve.e.e.e.e.
EacEacEacEacEach n Evh n Evh n Evh n Evh n Evererererer y Call wit y Call wit y Call wit y Call wit y Call with sh sh sh sh strtrtrtrtrict SL and Prict SL and Prict SL and Prict SL and Prict SL and Proper Foper Foper Foper Foper Folloolloolloolloollo w up. w up. w up. w up. w up.
Call & Put OpCall & Put OpCall & Put OpCall & Put OpCall & Put Option, Stion, Stion, Stion, Stion, Stttttococococock Fk Fk Fk Fk Futuruturuturuturutures ares ares ares ares are Anoe Anoe Anoe Anoe Anottttther Serher Serher Serher Serher Ser vices vices vices vices vices
Offered.Offered.Offered.Offered.Offered.
MERIT STOCK
89059-89050
www.meritstock.com
WEEKLY REVIEW
CFT, MSTA (Londen)A professional Technical Analyst and a Trader based inBombay & Runs his ownconsultancy http:// www.prakashgaba.comEmail:[email protected]
WWWWWeek leek leek leek leek l y Ry Ry Ry Ry Reeeeev ieviev ieviev iew f w f w f w f w f o r theo r theo r theo r theo r the WWWWWeekeekeekeekeek
JJJJJ u n e 6 t h t o 1 0 t h 2 0 1 1u n e 6 t h t o 1 0 t h 2 0 1 1u n e 6 t h t o 1 0 t h 2 0 1 1u n e 6 t h t o 1 0 t h 2 0 1 1u n e 6 t h t o 1 0 t h 2 0 1 1
TEXTILE, Paints and Watches sectorsTEXTILE, Paints and Watches sectorsTEXTILE, Paints and Watches sectorsTEXTILE, Paints and Watches sectorsTEXTILE, Paints and Watches sectors
will get astrological suppor will get astrological suppor will get astrological suppor will get astrological suppor will get astrological supporttttt
Nifty: (5517)Sensex: (18376)3.6.11We said ‘Technically
the bar generated for
the week is suggestive of a possible up move or alimited downsidebar…and if the up movehappens then the nextlogical technical targetcould be 5564-5637 indays to come’
The market unfoldedas expected climbed upbut could not sustain
due to selling pressureand found resistancearound 5600 regions toclose positive but flat...
Technically the bar
generated for the week issuggestive of a flatmarket ahead and can beconsidered up as long as5450 holds but themarket certainly cannotbe considered as up untilit takes out 5600 withforce. From a trading point
of view I would trade long as
long as 5450 holds.Continue on ......10
Weekly StockMarket Prediction
6th June –
10 th June 2011Weekly planetary
position: During theweek, Moon wil l betransiting in Cancer,Leo & Virgo. Sun,Mercury & Venus inTaurus. Mars & Jupiterin Aries. Rahu & Pluto
in Sagittarius. . Ketu inGemini. Saturn inVirgo. Neptune in
Aquarius. Lord Rahu &Ketu Dev will shift toScorpio & Taurus onthe afternoon of 6 th
June 2011.B E
C A U T I O U S : P l a n e tRAHU & KETU will bechanging the house
from 6th June 2011.They stay in one housefor 18 months. Theyare signaficators forspeculation & tradingin Stock Market. Many
506-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-2011 THETHETHETHETHEE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O N
ONLONLONLONLONL Y RS.1000 Y RS.1000 Y RS.1000 Y RS.1000 Y RS.1000
PER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GET GUJARA T GUJARA T GUJARA T GUJARA T GUJARA TI VERSION FREETI VERSION FREETI VERSION FREETI VERSION FREETI VERSION FREE
SENSEX SUPPORT 18211 /17823
RESISTANCE 18467 /18912SENSEX ----
( S U P P O R T - - 1 8 2 3 1 /17857----RESISTANCE--
18487/18741)Technically sensex
looking sideways forcoming days. The nextmajor Resistance level of sensex is 18741. Targetand Stop loss for clientsonly.
Stock looking strongTechnically. Indicatorsshowing good up movefor next few days.Traders can Buy cash andfuture for short term.Target and Stop loss onlyfor Clients.
GRASIM LIMITED
( S U P P O R T - - 2 1 5 4 - - -RESISTNCE--2367)----SELL
Stock is looking greatto sell for short term
traders and investors.Traders can sell cash andfuture. Target and Stop
loss only for Clients.SHORT TERM
TRADING CALLSTRONG TECHNICAL
BREAKOUT -- KEEPSTOPLOSS ALSO
BUY-----( BSE CODE--531582)BERYL SECURITIES
LIMITEDDisclaimer:These calls are based
on the technical analysisand personalobservations and are notrecommendations to anyperson to buy or sell anysecurities. We dontconsider fundamentalvalues of any scrip in thisnewsletter. Readers of this column who buy orsell securities based on
the information in thiscolumn are solelyresponsible for their
actions and profit or loss.It is only the outlook of themarkets and stocks withreference to its previousperformance. You areadvised to take your
position with your senseand judgment and withstrict stoploss. we sendour Articles to differentnews providers and wedont gurantee of accurateprinting of the article,there maybe misprintingand misreporting in thearticle. Stock market ishighly unpredictable anddemand and supply
affects it. And authorwon't be liable orresponsible for any legalor financial losses madeby anyone.
Moody’s today saidIndia’s growth prospectsover the next few yearsremain robust and the
economy is expected toexpand by 8.5-9.5 percent annually despite theslowdown during theJanuary- March quarterof last fiscal.
Terming inflation asthe biggest challengebefore the Indianeconomy, Moody’s saidthe Reserve Bank shouldfocus on controlling theprice rise and added that
maintaining the balancebetween growth andinflation would a test forpolicymakers.
The slowdown in
India’s real GDP in thethree months to Marchwas not entirelyunexpected... Theeconomy is still carrying
s t r o n ggrowthmomentumi n t o2 0 1 1a n dsho ul dgrow ina rangeof 8.5-9.5 perc e n tover then e x tf e w
years, in line with itsrecent trend, it said in a
report.The country’s
economy grew by 7.8 per
cent during the quarterended March, theslowest pace of growthin the last five quartersmainly on account of poor performance of themanufacturing sector.
It had registered agrowth of 9.4 per cent inthe correspondingquarter of the previousfiscal and by 8.3 per centin the third quarter of 2010-11.
Overall, the economicgrowth during 2010-11was 8.5 per cent, a tadbelow the government’sforecast of 8.6 per cent,but well above 8 per centregistered in 2009-10.
706-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-2011 THETHETHETHETHEE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O N
a low of 18199 an dclosed the week at18376. The Sensex
gained 110 points on aweekly basis. SimilarlyNifty opened the weekat 5493, made a high of
5604, a low of 5458 andclosed the week at5516. The Nifty closed
with a gain of 40 points
on a weekly basis.Market required a
bullish white candle tobe formed last weekand was on course fordoing that. But the fallon Friday made surethat the market made aneutral white body
Spinning Top formationon the weekly charts.The bearish aspect isthe long upper shadow,which signifies selling athigher levels. On thedaily charts, bothSensex and Niftycompleted a BearishEngulfing pattern onFriday. Thus the veryshort term time framehas turned negative.
Only a close above theweekly high will negatethe effect of BearishEngulfing.
Sensex made aRising Gap while
moving upwards,between 18072-18087.This gap is expected toprovide support in caseof a fall.
One can sti l l
consider the market tobe in a pull-back modeas long as the low of
17786 for the Sensexand 5328 for the Niftyis not violated. We haveto consider a pull-back
of the fall from 19811-17786 for the Sensexand 5944-5328 for the
Nifty. The pull-back
levels are placed at18560-18799-19038for the Sensex and5563-5636-5709 forthe Nifty. If we considerthe entire fall from21108 to 17295 for theSensex and 6318 to5177 for the Nifty then
the pull-back levels are18751-19202-19651 forthe Sensex and 5621-5758-5895 for the Nifty.
The market is wellbelow the long termaverage i.e. 200dma(Sensex – 19181 andNifty – 5757) andmedium term averageof 50dma (Sensex –18817 and Nifty –5645). But the market
has closed andmanaged to stay abovethe short term averageof 20dma (Sensex –18295 and Nifty –5483). As a result, the
short term trend hasturned positive whilethe medium term andthe long term trendscontinue to remaindown. As the medium
term and the long termaverages are above thecurrent market price,
they wil l act asresistances.
There exists a strongsupport line in the
form of demandtrendline at Sensex17855 and Nifty 5342.
This is a very critical
support line and themarket has beenrespecting it for thepast 18months. Themarket tested thistrendline two weeksback and managed abounce-back from thistrendline. A breach of
this support line willconfirm a Bearish Headand Shoulders Reversalpattern. This will beherald a strong bearonslaught.
On the higher sidethe 50% pull-back levelof the immediate fall,38.2% of the entire fall,and 50dma all convergeand are placed nearby,thus forming first
resistance zone i.e.from Sensex 18751-18817 and Nifty 5621-5645. Above this, thereis a second resistancezone formed by the
convergence of 50% of the entire fall, trendlineresistance and 200dma.Thus Sensex 19181-19279 and Nifty 5757-5794 forms a second
resistance zone.The market
completed a smallBearish Head &Shoulders and thetarget for which is
Sensex 16573 and Nifty
4964. The target for thisBearish Head andShoulders will remain
intact as long as themarket remains belowSensex 18724 and Nifty5605.
MACD even thoughin negative territory,
has given a Buy signal.ROC is positive andhence in Buy mode. RSIhas just fallen below 50and is at 48, giving a Sellsignal. A close above
SUSCRIBE FOR ENGLISH VERSION, GET GUJARATI VERSION FREE
906-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-2011 THETHETHETHETHEE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O N
MFI=Money Flow Index * RSI=Relative Strength Index
ADX=Directional Momentum Index
BSE Sensex (18376.48) and Nifty (5516.75) closed down.0.6% and 0.7% respectively last week.Nifty Future Junewas quoting at 17.05 points premium.Nifty call option June5600 was very active.Support for Sensex is at 18160. Resis-tance for Sensex is at 18630 .Support for Nifty is at 5450and resistance at 5595..
Inflation data will be released by the Government on 14th
June 2011.RBI monetary policy review meet will be held on
16th June 2011.Sun TV and RIL added Open Interest in June series.Huge
position was build up at Tata Motors June Call Option StrikePrice 1100.Good build up was also seen at RIL June CallOption Strike Price 980.
Strategy for Futures Option players.1)Wipro(443.10) Lot Size-500 SharesBuy One Call Option of June Strike Price [email protected] Rs
Break Even Price=450.702)Infosys(2833) Future-Lot Size 125 shares.Buy One Lot June Future @2833 RsSell One Call Option of June Strike Price [email protected] Rs.Premium Received=32.50*125=4062.50 RsMaximum Profit=2900-
Trading Idea1)LT(1712.75)Buy this stock in decline and trade.2)Dabur(115.20) Buy this stock in decline and trade
TREND OF MAJOR STOCKSSTOCK TREND NO OF Weekly Monthly
DAYS Trend Trend
BHEL.NS Bearish 1 Falling Rising
ICICIBANK.NS Bearish 2 Falling Falling
ITC.NS Bearish 1 Falling Rising
TATASTEEL.NS Bearish 2 Falling Falling
TCS.NS Bearish 1 Falling Falling
TO GET SUCCESS IN STOCKMARKET ALWAYS READ TER
STOCK CLOSE MFI-21 RSI-14 ADX-14
BHEL.NS 1911.8 31.8 36.6 35.54
ICIC IB AN K.N S 104 7.4 5 1.8 1 4 7.03 18 .7 6
ITC.NS 193.45 48.36 58.35 16
TATAS TEE L.N S 5 73.25 60 .5 3 4 4.38 17 .7 5
TCS.NS 1152.1 58.81 49.8 11.47
DOWN trend started from5600 for target 4100
Dinu's SAR -Trend and Stop-loss Table for Nifty -Investor Chart trade Beta Trend From Stop Gain
type type % lossDerivative Daily 20 (+1.2) DOWN 5550 5530* +30Swing trade Weekly 20 (1-1.2) UP 5840 5510* +10Short term Bi-weekly 20 (1) DOWN 5810 5530* +290Medium term Monthly 20 (1-0.8) DOWN 5700 5590* +190Mutual Fund Quarterly 10 (-0.8) DOWN 5700 5670* +190Long Term Yearly 10 (-0.8) Neutral 3670 5290/5750** +2210
(Daily stop-loss + close)/ 2 will give trader next day’s stop-loss and trend for NIFTY.Traders to exit below trigger** and re-enter trend at trigger** or lower level. Reversetrend, if market trades against stop loss for 30 min.*
Nifty - weekly close 5517(5476) – After flat close on
Monday, Tuesday and
Wednesday had a month end
rally due to mutual funds
buying to boost NAV. Selling
again started on Thursday andcontinued on Friday. Weekcloses above trend point 5480with gain of 40 point. As perour One two ka four %formula with 5600 high,midterm UP trend stoploss is5490, long term UP trendstoploss is at 5380 and with5510 low, short term DOWNtrend stoploss at 5565.
Modify all stop losses withmarket hitting new high or
Continue on ......10
Now out of our 15 different hints for nifty to Trader and Investor, 9 are bearish. Outof 50 NIFTY stocks 33 are trading negative below their mid term supports. 18 NIFTYStocks are below long term support 500 DMA. Reader can see Intraday, EOD technicalchart of Nifty and nse/bse stocks with Mobile Phone on my site http:// dinuthakur.blogspot.com – free and first time in India.
Short term Trend and reversal levels for NIFTY stocks are as follows -
1106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-2011 THETHETHETHETHEE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O N
IPOs with less than Rs 25crequity to list without SEBI nod
Come September and
initial public offers (IPOs)of companies with paid-up capital of upto Rs 25
crore will not requiremarket regulator SEBI’snod to raise capital.
“The companies witheither market cap or paidup capital upto Rs 25
crore will only require
exchange’s approval forlisting.
Such companies willnot berequiredto takeapprovalof theSecuritiesa n dExchangeBoard of India tomake thep u b l i coffer andg e t t i n g
listed, BSE head of product strategy SayeeSrinivasan told reportersyesterday on thesidelines of roadshow of the exchange.
In reply to another
query, he said bySeptember it wasexpected the BSE will beready to launch theexchange facility to caterto small and mediumenterprises. NSE has alsoreceived in-principalapproval for similar SMEexchange.
However, toparticipate in trading theminimum trading lotwould be Rs 1 lakh.
Keeping in mind theinterest of smallinvestors who not havemuch access to smallprivate companies, it wasdecided to keep theminimum trading lot of Rs 1 lakh, irrespective of share value
1306-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-2011 THETHETHETHETHEE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O N
THE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTION WELKNOWN ANALYSTS WRITERS FROM DIFFERENT PART OF COUNTRY
FDI Sector will attract investore FancySensex revived
slightly in the early partof the week asprogressing monsoonsent a breath of fresh airthrough equity markets.But harsh readings fromeconomy coupled withre-stirring of the 2G-hornet’s nest made
stocks wilt once againand close the week withmarginal gains.
The mood amonginvestors and traderscontinues to belackadaisical and this isreflected in plummetingvolumes, especially inthe derivative segment.Market participantsperhaps found it moreamusing to watch thedrama surrounding thelatest anti-corruptionfast.
FIIs turned net buyersagain. Open interest ishowever creeping up
and so is the proportionof puts in the OI implyingthat more traders arebetting on marketdeclining from theselevels.
The decision on dieselprice hike scheduled fornext week could causesome reaction.
Economic data willcontinue to be scannedwith great interest formore signs of slowdownin the economy.
The surge in the earlypart of the week helped
the 10-day rate of change oscillator climb into positive territory. Butthe slide that followedhas pulled this indicatorlower to the zero line
again, implying that thenear-term viewcontinues to beambivalent.
The weekly oscillatorsare also hovering in theneutral region, on theverge of moving in tobearish zone.
I n t e r e s t i n g l y ,
oscillators in the monthlychart are also poised inneutral zone following a
decline. This implies thatthe zone around 17,800where Sensex iscurrently halting is acritical trend-decider forthe medium and long-term as well.
Decline below thiszone would mean thatthe down move canaccelerate turning themedium-term view tonegative.
When the first leg of the current decline tookplace between last
November and February,the other global equitymarkets were in robustshape and hitting newpeaks. The developedmarkets including the USare only just beginning tocrumble under profit-booking.
Once those marketsbegin correcting, Indiacould also join in, makingthe third leg of thisdecline reach even thesecond target of 16,493.
According toFibonacci retracement
also we get two criticalsupports at 16,758 and16,118. So the entirezone between 16,000and 17,000 should be anarea where the brave-
hearted start cherry-picking.
In the short-term,Sensex faces astrong resistancein the zonearound 18,700.Inability to moveabove this levelwill mean that theindex can headlower to 18,124or 17,786. Haltaround 17,800again will result inthe index moving
in the rangebetween 17,800and 18,600 forfew moresessions. Such amove will retainthe bearish short-term bias.
Strong movebelow 17,800 willpull the indexdown to 17,420or 16,647 overthe ensuingw e e k s .C o n v e r s e l y ,targets on a close
above 18,700 are18,915 and19,126. Theuptrend can betaken seriously only on aclose above 19,126.
Nifty (5,516.7)Nifty too turned
volatile after recordingthe peak 5,597, justbelow the resistance at5,608.
As explained in ourlast column, there is aconvergence of resistances around this
level. Failure to get pastthis level in the early partof the week can cause adecline to 5,434 and5,328 in the days ahead.If the index stabilizesaround the support at5,330, there can be arange-bound movebetween 5330 and 5600for few weeks. Such amove will retain abearish short-term bias.Breach of 5330 supportwill usher in a decline to5224 or 4989 over the
ensuing weeks. Targetson a strong close above5,600 are 5,640 and5,710.
Global CuesGlobal stocks were
jittery as the crisis inGreece worsened.Moody’s Investors
Service’ downgrading of Greek government’scredit rating and thedeposit and senior debtratings of eight Greekbanks stoked thenervousness. Mostbenchmarks closed 1-2per cent lower.
CBOE VIX closedhigher at 17.9 afterhitting the intra-week
peak of 19.8. DJ Euro
STOXX 50 is once moreclose to its medium-termsupport at 2800.
Bounce from theselevels will maintain apositive outlook for themedium term. But thedouble-top formation inthe weekly chart is a littledisconcerting.
The Dow recorded asharp 290 points declinelast week. This is the fifthconsecutive week whenthe index has ended in
the red. Immediate
support for the index isat 12,070. If this level isbreached, the index can
decline to 11,555.As explained earlier,
medium-term trend willturn negative only on aclose below 11,640.
Asian benchmarkswere relatively resilientand closed with minorprofits.
Sharp decline indollar over the weekmade commoditiesincluding gold and crude
to spike higher.
VMS Industries IPO finallysubscribed 1.36 times
VMS Industries IPOfinally subscribed 1.36times on its last day. VMSIndustries IPO was openon May 30, 2011 andclosed today forsubscription. VMSIndustries has receivedbids for 97,34,400 shares
as against issue size of 71,52,778 shares.
Subscription Detailfor Day 4
Qualified InstitutionalBuyers (QIBs): 0.0000
Times Non InstitutionalInvestors: 1.1100 TimesRetail IndividualInvestors (RIIs): 3.4100Times
Total Over-subscription:1.36 Times
Posted Date: 6/2/2011 8:50:55 AM
Timbor Home IPOfinally subscribed 5.78times. Timbor Home IPOwas open on May 30,2011 and closed todayfor subscription. Timbor
Home has received bidsfor 21,339,400 shares asagainst issue size of 3,690,000 shares.
Subscription Detailfor Day 4
Q u a l i f i e dInstitutional Buyers(QIBs): 0.6500 Times
Non InstitutionalInvestors: 3.2200 TimesRetail IndividualInvestors (RIIs): 14.2200Times Total Over-subscription: 5.78 Times
1506-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-201106-06-2011 to 12-06-2011 THETHETHETHETHEE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O NE C O N O M I C R E V O L U T I O N
THE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTIONTHE ECONOMIC REVOLUTION WANT SUCCESS IN STOCK MARKET, READ THE ECONOMIC REVOLUTION
Elliott Wave Rules-9 [completed]No matter how hard
one tries to slog hardand slave
It is difficult to figure
out how the stockmarket will behave
Many trades can turnout to be a close shave
Your knowledgemakes me feel asbackward as the man inthe cave
While you’re earlierposts one has tended toadmire and rave
To attempt to evenunderstand this one,one has to be brave
The consequences of wrong application canbe counterproductiveand grave
For the time beinglike any other computerfile, I shall only save
Your comprehensivepresentation on Elliotwave
(Actually, it is so longand wide that I can’thelp an analogy withtsunami wave)
How I wish thatalongside us to explainthis on a computerterminal, “you” wecould have
One shall alwaysremember in hindsightand be grateful forknowledge that yougave.
Of course, instead of sweeping one aside likein tsunami, this onesweeps us off our feet. Ihave used the wordbrave because I honestlywish you could presentthis online to us on acomputer terminal.Wave count beingdeceptive, Elliot wave isdicey to understand as itis.
Somebody gave me apresentation onadvanced get fourmonths back. Here is abrief summary of itwhich that guy gave me.This is not a patch onyour knowledge or thepost above butfollowing the healthytrend you always set, letme share whatever littleI got. The person fromwhom I learnt all thisseemed very
competent. Most of it isGreek to me now since Ihave not had theopportunity to use it.
WAVE 2 = 50% OFWAVE 1 62% OF WAVE 1
WAVE 3=1.62(1.618)x1=2.62X1=4.25X1
WAVE 4= 24% OF 338% OF 3 50% OF 3
WAVE 5= WAVE 1 =1.62 X 1 =2.62 X 1
Advanced Get:-
TYPE 1 BUYEV4 WHEN PRICE >
MV,PTI>35,WAVE 4 NOTBROKEN,OCILLATORPULLBACK IS BETWEEN90-140%.
IF WAVE 4 CHANNELSARE BROKEN, LOOK ATAGGRESSIVE WAVECOUNT
TYPE 1 SELLEV4 REVERSALIF
AFTER BUYING OR
SELLING, PRICES CLOSEIN VICE-VERSADIRECTION OF MOVINGAVERAGE, REVERSE THETRADE AND IF YOUHAVE CONSECUTIVE 4LOSSES, DOUBLE THEQUANTITY AND DO THESAME AFTER THE 7THCONSECUTIVE LOSS.
TYPE 2 BUYDIVERGENCE BETWEENBOTTOM OF 3 AND 5WITH BOTTOM OFOSCILLATOR. PRICE >CLOSE OF MA.
IF PRICES STILL MAKEA FEW LOW OR FAIL TORISE, LOOK AT LONGTERM WAVE COUNT.
TYPE 2 SELL L O O KFOR DIVERGENCEBETWEEN TOP OF WAVE3 AND WAVE 5 WITHOSCILLATOR.
PRICES CLOSEBELOW THE MOVINGAVERAGE.
IF PRICES FAIL TOFALL, LOOK AT LONGTERM COUNT.
WAVE 3 BUYW H E NSOFTWARE LABELS
WAVE 3, LOOK FOROSCILLATOR. IT SHOULDBE ABOVE OSCILLATORBREAKOUT BAND.
IF YOU SEE A SHAREIN WAVE 3 BUT IT IS
BELOW MOVINGAVERAGE, MOMENT ITCLOSES ABOVE MOVINGAVERAGE, BUY. THESE
ARE KIND OFCONTINUATION TRADEWITH MORE THAN 95%
SUCCESS RATE. TO BOOKPROFIT IN WAVE 3, WEUSE SHORT TERMCOUNT WHICH REVEALSWHEN WAVE 3 SHALL BEOVER.
WAVE 3 SELLREVERSE OF ABOVE
I hope I am notoverdoing the poetrybit. I feel that everygood, sincere postdeserves to be
applauded especiallyconsidering the fact thattraders don’t shareknowledge as readily ascredit. The old agade, “If you can’t win them, join them” needs to beslightlymodified in thiscontext , “ If you can’t join them, appreciatethem”.
The Elliot Wavetheory
Elliot discovered thatthe ever-changing pathof stock market pricesreveals a structuraldesign that in turnreflects a basic harmonyfound in nature. Fromthis discovery, hedeveloped a rationalsystem of marketanalysis.
Under the WavePrinciple, every marketdecision is bothproduced by meaningfulinformation andproduces meaningfulinformation. Eachtransaction, while atonce an effect, enters
the fabric of the marketand, by communicatingtransactional data toinvestors, joins the chainof causes of others’behavior. This feedback
loop is governed byman’s social nature, andsince he has such anature, the process
generates forms. As theforms are repetitive,they have predictivevalue.
Wave PatternsIn markets, progress
ultimately takes theform of five waves of aspecific structure. Threeof these waves, whichare labeled 1, 3 and 5,actually effect thedirectional movement.They are separated bytwo countertrendinterruptions, which are
labeled 2 and 4. The twointerruptions areapparently a requisitefor overall directionalmovement to occur.
At any time, themarket may beidentified as beingsomewhere in the basicfive wave pattern at thelargest degree of trend.Because the five wavepattern is the overridingform of marketprogress, all otherpatterns are subsumedby it.
The 5 wave pattern isoften followed by 3corrective waveslabelled as A-B-C.
Wave ModeThere are two modes
of wave development:impulsive andcorrective. Impulsivewaves have a five wavestructure, whilecorrective waves have athree wave structure ora variation thereof.Impulsive mode isemployed by both the
five wave pattern and its
s a m e - d i r e c t i o n a lcomponents, i.e., waves1, 3 and 5. Theirstructures are called
“impulsive” becausethey powerfully impelthe market. Correctivemode is employed by allc o u n t e r t r e n dinterruptions, whichinclude waves 2 and 4.Their structures arecalled “corrective”because they canaccomplish only apartial retracement, or“correction,” of theprogress achieved byany preceding impulsivewave. Thus, the two
modes arefundamentally different,both in their roles and intheir construction, aswill be detailed in anupcoming section.
overlaps or enters thearea of wave 1. Anoverlap means one shdconsider the possibility
of A-B-C corrective* An exception to the
above is a 5th waveending diagonal
* Wave 3 is never theshortest.
* Wave 3 & 5 arerelated to wave 1 by aFibonacci ratio (equalityor 1.618 or 2.618)
* In any corrective,wave C is related towave A by a Fibonacciratio (equality or 1.618or 2.618)
* In any corrective,
wave B is related to
wave A by a Fibonacciratio (0.618 or equality)
* Compared toimpulses, correctives
are difficult to trade.There are more than 23types of patterns.Sometimes the bestthing to do is let themarket make up its mindand then decide what todo.
* In an impulse, it iscommon for a wave 3 orwave 5 to extend.
* Any correctionfollowing a 5th waveextension will typicallyend at wave 2 of theextension
* Alternation: if wave2 is a sidewayscorrection, wave 4 willbe fast/ straight/ swift(and vice versa).
* Waves are fractaland principles applyacross all time frames. A1-2-3-4-5 impulse couldbe a part of larger Awhich in turn can be apart of a larger 1
A triangle in itself isa 5 structure withoverlapping sub-structure,more oftenthan not
a)Triangle precedesexhaustion
b)final consolidationb4 last run up
Thats becausepsychology of triangle isindecision between thesellers and buyers in themarket.
Wave 2 cannot be atriangle at all
because wave 2’s are just like B waves,(suckerpunch),a B wave createsa false illusion of a bullrally and by definition B
waves are 3 structures.
Cont. from Pg. 16LIC
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