HAPPY DIWALI TO ALL READERS
Nifty was showing strength till yesterday, buckled down today. Yes, it has closed above recommended stop loss level of 5680 but chances of visiting lower levels of 5660 and 5640 have increased once again.
But, let me affirm that Nifty is still in uptrend un till closes below 5640 on weekly closing basis, and till that hitting upper channel 6050 remains alive.
Nifty showed remarkable strength today. Nifty also closed above 5730 for 2 consecutive tests. Hence, I would recommend to buy Nifty with stop loss of 5680 on closing basis for target price of 6050.
Fundamentally Sound and Technically positive stocks: Sintex, Crompton greaves, Educomp, Force Motors, NMDC, TCI ( Transport Corporation of India ), Tecpro systems. I will keep revisiting this list.
Sesa Goa shows very good pattern. Buy Sesa Goa at current level for target price of 182-190.
Rupee slipped again today. Rupee will have high resistance zone between 55-56. Rupee has tried once to take out 55 but failed and came down. But, I think the way Rupee is behaving, it can try once again to take out 55-56 resistance zone. Rupee is still in trend.
What is sure about Rupee is that it will test 51 to 48 zone.
Rupee is showing complete indecisiveness. Last 2 days closing is on the same level. With patterns formed so far, I will venture to short Nifty only if it closes below 53.50. Till then, it can move either in the range of 53.50 to 54.50 or may head up again to 55 and 55.50.
But , yes those who have risk appetite can continue to short Rupee on higher levels.
Dollar is almost ready to reverse its uptrend and ready to hit lows of 78.50. Dollar is done with upside is also seen in USD/JPY, AUD/USD and other pairs.
Gold is taking some rest today. Gold can stabilise here for a while before riding again if attained levels ( closing above $ 1717 ) not quickly given up. In Indian price, Gold has risen to some extra degree, thanks to Rupee’s slide.
Ah !! Gold turned people’s opinion up down in last few days. But, I continued to say that one day’s down trend should not be considered final and if downward spike is retraced completely in next 2-3 days then it was just a quick sell off pressure built intentionally to weed out weak holders of the positions.
Gold’s yesterday’s close was very much on $1717 from where Gold fell on 2nd Nov. As I am writing Gold is back above $ 1717 around $1723. I wrote day before yesterday that Gold has 2 options since Gold is moving in a channel wherein upper channel touches to $ 1840 and lower channel to $ 1460. If Gold sustains at higher levels and does not give up levels attained quickly, Gold will hit $ 1840. But, be patient. We are at critical juncture and patience will only pay at this time. Stay tuned to my updates.
Silver will continue to follow Gold.
I will remain sideways. Will update as opportunity arises.
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