NIFTY in last one year

Dear Investor,

Last one year from July 2009 to July 2010, Stock market has been moving in the range of 4500 to 5300. Every time market goes down to 4700 it has reversed. What's amazing is most of the worlds other markets have not been able to hold this kind of range bound action. Most of of them including in US stock markets are in bear market.

I find India's stock market is very strong and its not letting anything take it down. 150 day moving average has been a strong support. Personally I feel, any correction is a buy in this market. Unfortunately we do not get strong corrections. Any ways, We will find our way out.

Following chart is one year range. Nothing much has really happened. I think, the big show is about to begin anytime soon as soon as we leave this base. The bias is more towards upside but you never know. There is no confirmation of the next move. Guesswork does not help. You need solid confirmation on either side.

IndiaBulls Financial Services has some convincing action going on. A consistent close above 165 will pave a way for its next wave. I am not putting anything on active buy list because of a crappy global environment. Since traders are so news driven, with upcoming European Bank Stress Test Results, It is very risky environment. Its good to be picky and touch where you have less risk.

This chart pattern is called cup with handle pattern. Its just text book formation of buy. We also have huge confirmation volume. Only we need to wait for it is close above 165 and stay above for 3-4 days. That should clear the way for target of 215.

Federal Bank is very very bullish stock. It is overextended in its trading. Huge buying volume suggest that people just can't wait to get their hands on this guy. Well, That's not very good sign but technically its very sound stock to have in your portfolio.

You must be wondering why I ask you to wait for 3-4 days of close above its resistance price. Take a look at the following TV 18 Price action. This stock came crashing down in past two days after reaching its resistance price. This is a trap we need to avoid and hence the wait is worth the time and your money.

Thanks

Anil

Got a Question/Send your contributions for other members:

email:indiastocktrend@gmail.com

Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.