Nifty Future Closed @ 5536 Nifty Future Supports @ 5430-5350 Nifty Future Resistances @ 5640-5755 Nifty Future Strong Above 5640 & Weak Below 5480 last week, Nifty Future broke all crucial Supports and closed below 200 DMA which makes bearish chart pattern. Technically Nifty Future is extremely weak but oversold. But Oversold phase can be longer than anticipated in trending range. Nifty Future trading strategies should be based on Crucial levels rather than Hope. Nifty Future medium term Supports Stands @ 5470-5350 which is vital for medium term market trend. 5430-5350 is importance support levels from where Pullback possible till 5755-5840 if holds 5430-5350. Closing Below 5350, Next Support Stands @ 5240-5120. One should add some longs and cut shorts on trend reversal or if 5430-5350 Holds. Trend will change to bullish only if closes below 5640. Long term outlook remains bullish and this correction is 20 Month Bull market correction not bear market correction. Long term Investors should accumulate Fundamentally Strong Scrips with 1 year time-frame in parts as risk-reward is fruitful in long run.
" Trade with Levels not with Hope "
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Nifty Future Closed @ 5700Nifty Future Supports @ 5620-5540Nifty Future Resistances @ 5760-5875Nifty Future Strong Above 5760 & Weak Below 5620This Week Nifty Future was in consolidation phase. For entire Week, Nifty Future Moved in Range of 5630-5755. For Next Week, 5630 will act as strong support. In Addition 5612 is crucial 200 DMA Support for Nifty Spot. Below 5612, Nifty Future will move towards 5550-10 which was break-out level in September above which Nifty Future made High of 6330+ on Diwali. This week, Nifty Future managed to close in Green. Above 5760 momentum will increase and short covering possible which can take Nifty Future towards 5830-75. Next Week which has 4 trading day is expected to be Volatile due to Expiry Week, RBI meeting and Earning session. Last week, Nifty Future set-up changed to neutral to slightly bullish from bearish zone. Risk-reward is in favor of Bulls until and unless 5630-12 Holds. Closing Above 5760, It will be Bullish and Closing below 5630-12, It will be bearish. Trade as per with Strict Stoploss. Long Term Support @ 5550-5350 & Still Bullish & Long term Investors should start accumulating Fundamentally Strong Scrips with 1 year time-frame in parts without thinking too much about next week or next month.
" Trade with Levels not with Hope "
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Nifty Spot Closed @ 5654Supports @ 5540-5370Resistances @ 5840-6030Last Week we mentioned, Nifty is Bearish for short term below 5970 and makes downside target of 5830-5700 if Fails to cross 5970. This week, Nifty broke Strong short term triple bottom support of 5700 with huge volatility and clearly in bearish zone. Nifty created a good base @ 5350-5540 before moving towards 6240 in Sept which will act as strong support in near term. In Addition, 200 DMA which Stands @ 5604 will be closely watched. Nifty Spot Strong/Weak Above/Below 5840. Most of the oscillator Indicators are oversold which indicates some short covering. It was the interesting week for the share market not from the point of view of its correction but from the point of view of volatility. Now Strong Resistance @ 5840-6030 & Strong Support @ 5540-5370. Fresh Buying & Selling will come near Support / Resistance or @ Trend reversal. Traders should trade in less quantity as per level due to high volatility. Medium term Support @5540-5370 crucial for medium term Investors. Long Term Still Bullish.
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Nifty Spot Closed @ 5904Supports @ 5830-5700Resistances @ 6040-6175We have been bullish since last 1 month from 5750 levels. Nifty Spot Hit 5950-6050 and finally 6180 Above 6050 & Finally a sell-off came once it failed to cross resistance zone of 6175-6202. Now Nifty closed below 5970 which makes short term bearish. On Downside, Nifty Spot will find Support @ 5830-5700 & on Upside Once crosses 5950-6020, Short covering will come. Its Bullish/Bearish Above/Below 5970 Spot Closing. Overall, Nifty in range of 5700-6300 for last 4 Months which makes BUY on Decline & Sell on High in trading market. Bank Nifty Support @ 10,810 which is 200 DMA which will help PullBack/Break 5%-10%. Rising Inflation & Interest Rate concern mostly priced. In Next 2/3 Months, when Negative will come in Banking, It will react positively. As the year 2011 started, most of the stock market participants are again bearish and talking more about concerns rather than positive outlook same like 2009 & 2010, Hence Equity looks to surprise on upside this year too.
" Trade with Levels not with Hope "
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2010 is over now and Stock market participants are looking here and there for Multibagger stocks for 2011 in India. Everyone who is involved in Indian stock market by any mean has dream to pick Multibagger stocks for 2011. Various Analysts, Brokerage & Equity firm has started giving their Multibagger stocks for 2011-2012 in India.
Before going to 2011, let see what happened in 2010. Besides throwing some light on Multibagger stocks for 2011 and 2012 in India, Let see what happened with broad Market. Nifty started the year with 5,200 and closed around 6100+. There was 3 Correction, 1st in Jan-Feb, 2nd in Apr-May and 3rd in Nov-Dec in 2010. Interesting thing to observe is that all 3 Correction was around 11% from its earlier peak and duration was also approx for 6 Weeks. Now what it indicates, it tells we are in long run secular bull market where we will have 10%-15% bull market correction in every few months. If my Wave counting is right, then we are in Wave 3 which means Nifty Target of 9,200. This wave 3 was started around 2500 in March, 09 and makes target of 8,000-9,200 in next 2/3 years. Hence, Long term outlook remains bullish and many Multibagger stocks for 2011 and 2012 in India will emerge in future. Since, this is Wave 3 which means Bull Run will be based on macro-economic conditions and stocks will rally based on earnings and based on strong growth story. Remember, In Wave 1, 80% Stocks do well but in Wave 3, Only 50% stocks performs. Hence, Stock Selection is very crucial and not easy for good return.
Now Talking about 2011 Stock Market Outlook.
As of Now, medium to Long term is still Bullish. Nifty has Strong Support @ 5690 then 200 DMA stands @ 5590 and then 5350. Hence, 5590-5350 will act as Strong Support for long term bull Market. If Nifty closes below 5350 then this Bull Market will be in Danger and 5120-4800 will come in picture. On Upside 6300-57 will be most crucial stiff resistance. Nifty Spot has made Double top @ 6330. 1st Top @ Jan, 2008 then 2nd Top @ Nov, 2010. Once Double top is taken out on weekly closes, then Sharp upside expected northward and later on it can act as strong short term Support and 5700 as medium term support too. Most of the stock market participants have started saying of 20% correction in 1st half and rally of 20%-30% in 2nd half. Is it possible?? May be or maybe not. Although, Correction is always healthy for Good Bull market in order to BUY Multibagger stocks for 2011 and 2012. But still what I know is one can't buy @ Bottom and Sell on High. Hence, Follow Systematic Investment. Choose 5-10 Good business and invest every month and earn better return than any other asset class. When one will see market and its portfolio after 3 years, then 6,000 or 5,300 will not make big difference. I do not care what street talks about it what I care more is best stock selection specially Multibagger Stocks in systematic way. Easy and works fine.
One can follow 7 general rules for better risk-reward while selecting Multibagger Stocks for 2011-2012.
1) Avoid Large Caps with PE 30+ in any Sector
2) Buy Stocks with PE below 15 in Realty, Infra, Tea, Fertliser, Civil Aviation, Domestic Consumption, Education, Mid-Small Cap IT Companies, New Innovative theme with less debt and strong visible growth for 2 Years+ in systematic order.
3) Avoid all stocks which has come in the horizon of IB where promoters and Operators nexus is exposed.
4) Avoid Mid and Small cap where PE is above 20 in any sector.
5) Buy Multibagger Stocks in strong growth trajectory and economy driven irrespective of the fact there are no operators.
6) BUY Good Business not Good Stocks. Good Business always surprises on Upside but Good Stocks only Give " Feel Good Factor " not Capital Appreciations all the time.
7) AVOID Timing the market. If you think, you can buy your favorite stock @ Rock Bottom Price in next big correction. Then Think again, if anyone can buy stock @ bottom price. Then everyone bought till neck in early 2009 and by this time everyone would have become millionaire and must be spending long holiday in Las Vegas :). When Nifty was 2,600, everyone was saying 2,000, @ 3,100 everyone was saying 2,600, @ 3,700 everyone was saying 3,100, @ 4,300 everyone was saying 3,700, @ 4,800 everyone was saying 4,300 and @ 5,400 everyone was saying @ 4,800 and now @ 6,000 everyone is saying 5,400 Time is more important than timing. Wait to increase your allocation when your stock corrects not to start investing. Correction will always come, but that should be time to increase equity exposure not to start, Otherwise one will become Speculator rather than Investor.
Which specific Stock to BUY for 2 year perspective??
The answer depends on one's risk appetite and your financial Goal. If one is looking to earn better return than any other asset class. Then there are many Good stock picks. Few of the stock picks are YES BANK, SELAN EXPLORATION, BOMBAY DYEING, RELIANCE, GITANJALI GEMS, GODREJ INDUSTRY, CAIRNS INDIA, CHAMBAL FERTLISER, BAJAJ-AUTO AND BHEL. One Can BUY these 10 stocks with Monthly Systematic way and expects 50% Return in Next 2 Years. If you only want to start Investing @ 5,400 then i can tell, you will be never able to invest because @ 5,400 as when if 5,400 comes gain I will be observing of people saying of 4,500. If one is looking for Multibagger Stocks for 2011 in India, Then Subscribe Multibagger Plus of equityahead.net. As Multibagger stocks are not BUY & FORGET thing, We need to Observe, analysis and Update the Scrip performance, Earning, Market outlook, News, acquisition & expansions and various news to get 300% return. After 2 Years, I will be publishing Performance of Multibagger Stocks here and then one can realise what one missed. I can say to Invest now, but after 2 years, i might not say in same confidence as market might have reached @ level where multibagger stocks will be hard to find. Think, Decide & Implement.
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