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INTRADAY CALLS – 20/11/08 – VIJAY

GLOBAL SENTIMENTS  WEIGH ON THE MARKET

 

 

WE  WROTE” MARKETS  ON QUICK SAND” WHEN EVERYBODY WAS EXPECTING A RECOVERY YESTERDAY AND ONCE AGAIN WE ARE ONE OF THE VERY FEW WHO CALLED IT RIGHT.

 

POUNDING ECONMIC DATA  CREATES BOTTOM LESS VALLEY IN THE CHARTS.  OCTOBER –CPI  FELL BY THE RECORD AMOUNT, THOUGH A GOOD NEWS  IN TERMS OF INFLATION, THE FEAR OF DEFLATION AND RECESSION OUTWEIGH THE GOODNESS. OCTOBER HOUSING STARTS AND BUILDING PERMITS DECLINED SHARPLY AND WERE BELOW EXPECTATIONS. FEDERAL RESERVE`S PROJECTION OF NEGATIVE GROWTH IN GDP WAS THE LAST NAIL FOR THE DAY. DOW  WAS BRIEFLY POSITIVE AT OPEN AND STARTED FALLING GRADUALLY TO END THE DAY AT ITS WORST LEVEL AT 7997, NEAR THE  LOWEST LEVEL OF THE DAY OF 7987 LOSING 427 POINTS.  DOW IS NOW A SHADE ABOVE THE YEARLY LOW OF  7773, WHICH WAS CREATED IN OCTOBER 08. THE SINKING CITI, WHICH WAS DOWN BY 23 PERCENT, BROUGHT FINANCIAL STOCKS TO ITS KNEES.  NO WONDER, ASIA IS DOWN AND NIKKEI IS BELOW 8000 WITH A LOSS OF MORE THAN 300 POINTS AS OF NOW.

 

NIFTY FUTURE WAS TRADING IN THE PLUS ZONE  TILL AFTER NOON AND FELL FROM THE DAY`S HIGH OF 2782 TO CLOSE AT THE LOWEST LEVEL OF THE DAY AT 2609 LOSING 74 POINTS FROM PREVIOUS CLOSE.

 

DO NOT AVOID SL AND HEDGING IS THE ONLY WAY TO SUSTAIN THE VOLATILE MARKET.HAVE A PROFITABLE DAY. REPLIES AT THIS COLUMN OR AT VIJAY.CALLS@YAHOO.CO.IN

 

 

NIFTY FUTURE SUPP LEVELS 2615, 2520, 2360 RESISTANCE LEVELS 2760, 2815, 2890. ONCE AGAIN THE FUTURE  MAY OPEN LOWER. THE BOTTOM IS STILL ELUDING AND IS STILL AWAY. MAY BE THE MARKETS ARE HEADING FOR CAPITULATION IN THE COMING DAYS. HENCE NEVER TRY TO FIND THE BOTTOM AND CATCH A FALLING SWORD. WAIT FOR THE BOTTOMING OUT AND THOSE WHO  BUY FOR INVESTMENT  SHOULD BUY ONLY THEN, EVEN IF THE RATES ARE LITTLE HIGHER.  AVOID LONG BELOW 2600.  BANKING STOCKS MAY BE VOLATILE IN VIEW OF THE  CITI GROUP TROUBLES. WAIT FOR THE TRADES AND AVOID TRADING IN PANIC.HAVE A GOOD DAY. STOCK CALLS TOMORROW.