About to slide.........

About to slide………..

In the global financial markets, India’s lead continues to hold on, while China, the once super power is sinking slowly. China is the only market that is negative at the moment, but, that does not mean we are insulated from any eventualities. Everything that goes up has to come down, when it is up and running make the best out of the moves. And while it is stagnant or falling, keep out and watch the fun, enjoying from your gains.

After a weeklong strengthened rally, Nifty shows hints weakness coming from all fronts. Leading indicators have begun showing bearish divergence. High lows are not much in support of the rally. Pressure on banks is not a good sign for the markets in the long term. Bad loans are a cause for concern. An increase in NPA’s as reported by Stat Bank of India, is a clear sign of the economy not being in good health.

Auto sector is the happening sector this week, finance sector sunk. Strong rally in the FMCG segment is a booster, while there is nothing to be surprised here as recessionary markets have foods and medicine stocks rallying. Stocks like SUNPHARMA, ITC, HINDUNILVR, GODREJCP JUBLFOODS are worth a watch. Technology has given some good trades too; Mphasis just closed with 53 points gains while Infosys has begun its long trade on the daily scoring up above 100 points last week. Reliance has woke after more than a year long slumber.

Trendiness update.

Trendiness on the Nifty is 50%, among that 28% is bullish and 22% is bearish. Situation is slowly moving up in the direction of bullishness, but is it worth taking a call to trade? Not surely in the index, but there are ample opportunities to trade in some really bullish stocks. HINDUNILVR is one such stock which has been in long trade giving above 50 points in profits, similarly a trade in AMBUJACEM, which has been running up with gains of above 20 points. As these bullish stocks keep moving up the ladder, look for opportunities to trade and make some gains from their moves, these are one of the easiest ways to make money in the market. You can get trading calls from the best of bullish stocks through mail with guidance on exits with maximum gains as the stock progresses upwards. Write to admin@bravisatempletree.com to receive stock recommendations.

New High’s New Lows index both on weekly as well as on the daily have retraced bearish divergence as the market moves above July 2012 high’s, a clear indication that longs on the index needs their stops to be made tight. With a downtick on the daily histogram, a sell signal has already been triggered on the Nifty on Friday. Last week we had written that, the indicators that we track do not always give us directions about market moves, but, it is worth tracking them as they give us advance warnings about what is in store for the coming days. It has proved now the usefulness of them. So, take a few minutes a week to get to know what is the big picture of the markets? Then start tracking your stocks based on the idea.

One of our other guiding indicators for the broad markets the CMZoom indicator which tracks the advance decline ratio and the up-down volume ratio on both the NIFTY and the NSE 500 stocks had an intermediate top on the 1^st of August, when the index hit a higher high of 5338 on closing of 7^th August 2012, all the guiding indicators retraced a lower top. This again is an added confirmation that the market has topped out for the time being.

Stock watch

Stocks that have chances of long trade this week are Jindal Steel and Power, Orchid Chemicals, Escorts, Praj Industries, & Central Bank.

“You can’t control life on the outside. Hard stuff will happen. But you can control what goes on inside. And those who do become great.”

-          Robin Sharma