NIFTY is the king of financial world today.

India rules the world in the Financial Markets.

Nifty is the king of indices this week among its global peers. As Nifty enters into 6^th month of non-trending moves, it has managed strength to reach the nearest resistance at 5350, next stop likely at 5400. Current week movements saw tight range with Nifty struggling at the top. On the weekly gains our market was not a strong performer, it was the Hang Seng and the UK markets that closed good for the week. For the year of 2012, so far NIFTY is the leader followed closely by NASDAQ. Hang Seng is managing to catch up, yet is far behind.

On the charts, weekly has its volume drying up as the market approaches resistance levels and the index is non-trending now, chances of reaching for value zone at 5140 looks more likely. On the daily charts, whole of last week saw mostly negative volumes in comparison to its average, though Nifty is in an established trend, few of the indicators have began showing tiredness. A close near the over value zone with a Blue impulse gives direction for short trades on the 60 minutes time frame. Let’s take a look if the next level has some promise for shorts. 60 minute chart has close with an uptick at the value zone, at present we cannot take short as there is no permission to trade. Once there is a down tick and the reward to risk goes in favor of our 1:3 range, the trade becomes attractive.

With Global markets closing strongly negative on Friday, there will be more pressure from the bears in the early hours of the next session. We have to wait for the mood to subside and find the right opportunity to take positions. If there is no opportunity with a good reward to risk on the trade, leave the index to go on its own way and look for trades in some of the good stocks that are coming up every day for new long trades.

Sector leaders.

On the sectoral front, Reality was the undisputed leader with an above 4% gain on its index value. ANANTRAJ, with an above 412% increase in its weekly volume against its average was the topper and has given a trend reversal buy signal on the weekly. A trend reversal with pretty strong volumes is an added strength to a stock in its next direction. Long term trades can take position in this stock above last week’s high. For risk rewards calculated using your capital on this trade please visitstocksupermarket.in. UNITECH, DLF and GODREJPROP were the follow up leaders, but none of them are trending and have any good chance of a long trade as of this week’s value.

Followed by Reality is the Media sector that had some good numbers to show up. EROSMEDIA was the leader and this stock too has given a buy signal on the weekly charts and has gained on volume by 37%. Volume support is more reliable if the stock has managed to reach above 50%. This stock is in long trade signal, but not so very attractive to take position. Select stocks that are highly promising, this work may be laborious, but it pays rich dividend when done with passion. The followers here are RELMEDIA and DISHTV, among them DISHTV has run up in value, but non trending on the weekly, while RELMEDIA is yet to give valid signals.

Institutional investments.

Compared to earlier weeks, this week’s activity was subdued on both FII as well as domestic levels. FII have mopped up stocks worth 2420.95 crores this week while the domestic players have sold 1579.73 crores worth of stocks. We have seen time and again that the FII are smarter than our domestic counterparts in their decisions on taking positions in the market. But, this time there are some interesting facts, with the market languishing to rally, though it is inching up in a slower pace, it looks like the domestic fund managers are going into caution mode ahead of result season. Some brokerages though have announced few sectors to outperform the markets on the results front like the Pharma sector, but the overall sentiment among industry groups looks to be heading down wards. Traders, please take all the signals the broad markets are giving you time and again and position yourself at the best possible levels. Only then you can have consistent growth to you account capital.

Make money through money.

The currency markets corrected sharply in the past week but pulled up again to close higher. The price USDINR thought touched the value zone on the weekly, on the daily there is more bearish strength on the charts. On Friday, USDINR had a uptick on close, giving a long trade signal. But, the reward to risk at present is not so good with a less than 2 times reward for the risk exposed. As the daily charts are attracting more bears, a wait for some clearer picture will be a good decision on this market. After there is another bout of selling and the indicators reach a bullish divergence, the trade will look more attractive. Keep off emotions, wait for the right opportunity to show up, when you see the chart, the trade has to ask you to take it, that is the intuition call and it will almost always lead your position to be a winner.

Market perspective.

Trend following trades on the daily charts have got stabilized with few of them rallying with above 20% gains. Whereas before the leaders could come in and position themselves in the run, there were many stocks that got into the trend, but failed to gain momentum. As the markets on the daily have fairly stabilized though not with much euphoria, weekly charts have begun to show up stocks on the trend following long trades. Few positions have got traded, while there are some more for the coming week. Traders with a long term perspective can take positions on these stocks. To get the recommendations on each stocks entry, stop loss and quantity in respect to your individual trading capital, login to stocksupermarket.in. Stock Supermarket keeps off greed and fear the most essential traits in trading success by managing your trading accounts in the highest professional manner. It give you your own personal money manager. A trader is at liberty to choose from our list pre-selected stocks to invest, while the maximum hurdle your account can face is 18% of your capital. We ensure highest safety to capital and give top priority to risk management. Stock supermarket is a revolutionary product in the financial markets, a total trading system online made available for every trader and investor.

‘I will burn all bridges behind me, and stake my entire future on my ability to get what I want.’

                                                                                                                                                                   -Edwin C. Barnes, a Business associate of Thomas A. Edison.

Happy trading week,

Team BraViSa.