i Develop Stocks Advisory

Bears Day Out... There was a sudden attack on Nifty in the market which has really given upper hand to bears as far as Nifty trades are concerned. 5220 was a major technical resistance which was pointed out by me yesterday and the attack was on that levels where lot of stop losses have triggered. This has given temporarily a shake out signal unless on closing basis Nifty does not recover beyond 5220. This has shaken bulls and those who are going long in Nifty because the attack is only on Nifty. The stocks specific all are up compared what they were when Nifty was at 5200 in JAN. We know volatility is very and will remain very high which clearly suggest that all Nifty call should be done with strict stop loss. As regards futures, even market is not much bothered because they know that you can’t cough 70 to 80% margin and therefore even if you are buying either you quantity is too small or you are buying in cash instead of going into futures. Therefore this has now become their domain till the time margins are streamlined. The volatility will always remain high and 500 points up and down will become a regular feature in view of the fact that FII are now allowed to go short without underlying buy in cash holdings. Therefore futures will remain again a very high risk zone and no day trading is possible in this. Only position trading could yield some gains. At the same time we stick with our convictions about market and our targets. We will hold our view even in falling markets though there will remain always contrary views. Power stocks will remain in action after the RELP listing. SBI, R Tower followed by RIL retail issue are sufficient triggers to keep market ticking. US slow down even though affects Indian exports the domestic consumption is enough to take care of Indian productions. At the same time U S has no alternative than to increase biz with India manifold which is must for their survival. Stay cool and invested. Setting an example is not the main means of influencing another, it is the only means.