VOLATILITY CONTINUES……….

NIFTY breached previous lows briefly, but managed to close with a small weakness to its previous close. Daily charts have opened out to a new bearish trend; further bearishness in the coming days will strengthen the trend. If there is a pull back, the trend will again change to neutral. Global cues which gave a push to our market nearing close has started getting weak as we write this just after opening bell in New York. European markets too have given back much of their gains.

Daily charts needs some more sessions for confirmations & trade directions. 'PATIENCE PAYS'. Hourly charts which went strongly bearish on the first few bars pulled up drastically, for those holding shorts it would be nail biting to keep watching 100 points of open profit drift away into thin air. That is the give back we need to give to have the trades till the end of trend. Some times it may reverse abruptly without much profit. As of now NIFTY has reached value zone in the Hourly charts. With the trend showing tremendous strength, it is short entry signal for those who have missed the train while it started its journey. It is also an add-on entry signal for those willing to leverage more.

Short below 5043 with a stop above EMA at 5095 on the NIFTY futures.

TELECOM Sector is the only Sector to close positive today, a very strong recovery from the Telecom Equipments Industry was reason for this. It is SIEMENS with a 5% gain to its price that has single handedly pulled up this Industry and Sector. Telecom Equipment Industry is one of the strong charts which is yet to retrace any weakness. SEIMENS being the leader of this group, which is also an outperformer in this sector. Wait for a trend change to trade long on SIEMENS.

The other Sector which showed its head up marginally was INDUSTRIALS Sector. This was a purely news based gains from the sudden spurt of ABB. The promoters of ABB are increasing their stake in the company from 52% to 72%. The sudden input of this news took market men by surprise and the stock took to a panic short covering. This stock is likely to go into a broad sideways pattern for a prolonged period.

The officers who lead the charge down hill today was ENERGY Sector recording 1.27% loss followed by TECHNOLOGY Sector losing 1.03% on their index. Rest others held to a marginal loss between 0.20 and 0.80%.

The star performing Industry apart from Electrical Equipments and Telecom Equipments was the Plantation Industry group with a close to 3% gain on its index. MCLEODRUSSEL & TATATEA were strong gainers here.

The weakest Industry today was Auto LCV & Tractor Industry with a 2.68% decline in its index value. TATAMOTORS lead the fall by dropping 3.30%.