mkt news

The fall from 2835 can take the shape of a normal 5-wave structure with the 1st wave already down by 265 points..(Or the 5th is Over??) or an ending diagonal..
Tomorrows trading should give us some clues to it.
2705 & 2734 are the 50% & 61.82% retracements..Markets action at this level and the earlier support as well as today's intra upper range of 2622-2630 will offer some clues..

Today's gap down opening manages to claw back up and closes 25 points down from yesterday's close. A few things of note - there is a clear trendline break on the daily chart (below), and today's price action ends up in a hammer but it is below the broken trendline. So we have a mixed bag of bearish(trendline break) and bullish(hammer) conditions. In this scenario, I'll ignore the hammer and go with the trendline break, and will use any pullback to 2750-2800 to go short again and I know only one thing in this set up - sooner or later this thing must break down (Of course, of course, you perma bear!).

(Inder Bhatia)

The Indian market opened gap-down on weak global cues. After opening market moved in narrow range till afternoon session however there was recovery in later half session and market closed in red zone . Nifty had broken the support 2630 intraday base but managed to closed above 2630.For coming session trading below 2570 it can test 2500 and on other side 2740- 2780 will act as resistances zone .Market will react on global cues.

Europe was up on an average of 1.5%.

Asia has opned positive.

We may have a gap up to a flat opening.

The support for the Sensex is 8500 and the resistance to the up move is at 8898-8998

Nifty: (2658) the support for the Nifty is at 2650 and the resistance to the up move is at 2860-3113

Day Trading ideas.

LNT

Buy above 682 for targets of 690 and 698

Sell below 661 for targets of 655 and 649

Aban Offshores

Buy above 645 for targets of 651 and 656

Sell below 632 for targets of 628 and 624

Unitech

Buy above 26.10 for targets of 27.05 and 27.80

Sell below 24.20 for targets of 23.60 and 23.10

Buy Nifty2700CE above 150, Target: 170,200 SL: 142

Buy Reliance1140CA above 54, Target: 60, 68 SL: 48

Buy Niftyfutures above 2680, Target: 2710, 2725 SL: 2665

Sell Niftyfutures below 2730, Target: 2710, 2680 SL: 2745

S S Cheema

0700hrs 03 Dec 08: US markets have ended 3 to four percent points in green. Before closing the markets looked like diving in red but recovered. Nikkei opened green but is now lower than the opening levels. Strait Times are about a percent and few points up.

02 Dec 08: The markets have actually held out the otherwise bad Global cues and non bothered govt here. Take a look at the crude – it is now a days a good barometer of where we are heading towards – crude up – stock up, crude down – stock down. Inspite of all the cues and the hype of lower targets – the markets survived and survived well. they recovered from the lows of the day – or to say the start of the day and there was actually a strong possibility that the markets would have gone green. The reason among the circles is that though is is a known fact that the production will reduce – the coming results of companies may be extremely bad – but the fact remains that the valuations at the moment are good and lower levels – see some sort of buying support that at the moment does not allow the markets to sustain fearlessly at the lower levels. It was expected that we will not break the S2 on the lower side and so it was. Today as I write the rally in US continues neutralising upto 1/3rd of the losses the markets made on maniac monday. So far so good. The second thing that pays up in mind is that the so called recession is already a year old. Does everyone really think that this will turn out to be worse than or equivalent of “The Great Depression?” – forget it! It is bad – agreed but there will be solutions too. There is a few billion people in Asia and Africa – who given the right environment will take the consumption and demand to higher levels. Take China and Indian example. You think our demand has disappeared? It is lurking and will pop up given the right environment. I may not really approve of it but the Auto bailout plan in US seems to be around the corner and that would give another boost to the markets for once. Eventually we may fall – okay but at the moment all the indicators are pointing up.

Okay – enough! let me start with the facts at hand. The Global cues forced Asia to start low and there was no reason that came during the course of the day to take the markets towards the recovery. Nikkei opened low – dropped lower and eventually closed 6.35% down in red. Hang Seng was down 4.98% and Strait Times was down 3.02%. Except for us and Strait Times – Nikkei and Hang Seng did not attempt a recovery. Europe opened flat with a negative bias – thereafter during the course of the day the markets dived down and then recovered to close comfortably in green. FTSE up 1.41%, DAX up 3.12% and CAC up 2.35%. So far so good. – now comes the US opening. The US opened flat facing green and has now towards the mid session climbed – Dow up 2.82%, Nasdaq up 3.35% and S&P up 3.41%. There is all the likely hood of the US closing green – that is if there is no surprise that crops up.

On the candlesticks front the news is not all good. The third day of onslaught has now stated turning the tables. It has turned missed but weighs still a bit heavy on bullish side. The candle is a hammer. If we take last three days of candles that show down movement (cannot call it a trend) then this hammer calls for a reversal. The Bollinger bands have expanded a bit. The 5 EMA line is looking down and no longer trying to face up to attempt a 20 EMA crossover. The volumes once again were low. MACD positive divergence has reduced a bit. RSI though still bullish – looks down. On slow Stochastic the red line is firmly below the blue line and red line has already crossed below the 50 marker. And the cherry – TRIX still looks up. I go by the TRIX’s way – it say bullish – I go bullish.

Pivot data…
R3 2774 against 2995 yesterday
R2 2735
R1 2696
Pivot 2633 against 2727 yesterday
S1 2594
S2 2531
S3 2492 against 2460 yesterday
Projected High Range 2664 to 2715
Projected Low Range 2628 to 2577
Fib Projected High 2699
Fib Projected Low 2542

We need to break up the R2 level atleast tomorrow.

The markets took the support once it touched the low at 2571 level and it managed to claw back to close at 2657 level a much needed support to Nifty above 2630 level and the weakness in RIL and ONGC is a great concern at this point in time.
The Australia cut the lending rates by 100 bps and our top brass discussing for the timing. The stimulus package announced to has some bearing on Infrastructure companies but the release of funds and the cost that matters a lot at this hour. The SEBI announcement of margin facility to all participants can improve the sentiment as the news flow infavour of Bull can propel the momentum in the Nifty levels back to 2800 levels.
In case the resistance at 2750 level crossed with ease, close above 2735-42 will add value to Bulls efforts. The bears will cover the positions as the positive news unfolds as progress progresses and the Nifty may touch again 3280-3300 level with short covering.
The only threatening concern unfolding is the verbal war with neighbours on Mumbai blasts can easily change the direction in case the situation provoked for a war on the terrorist camps.
The RIL has to cross the 1120 level, SBI has to cross the 1085 level and ONGC has to trade above 705level to see the Nifty to scale for new territory above 2860 level.

(NOORESH)

Just scanning through the large cap charts ..... Many of the stocks are crucial placed and need a sharp upmove to negate a possible breakdown like SBI , LT, Reliance Inds.

At the same time telecom stocks like Bharti and Idea look positive and need a breakout in short term to trigger more moves.

I have just made a quick review of the stock charts and may not be very precise levels but a simple reference guide and not a trading recommendation. So take your own call and do ur own research . Sensex 8300-9300 range would be difficult to trade till we dont breakout and above stocks would be the pivotals!.