Identical Twins 2008-2013 on Charts..... Interesting read

Hi All,

Markets moved up from the lows of 4800 to 6000 in less than a years time (From June 2012 - Jan 2013) with an ~ 50% annualized returns. Moreover they are trading positive for last 3 months, viz. November, December and January...

Following is the chart which compares the current scenario to that of January 2008, after which we all know what happened to the markets..... At a very nascent, amateur level, the same looks to me as very identical patterns however the consequences may vary as we know that Technical analysis is an art of dealing with probabilities and not certainties.

I personally feel that 5990-80 levels will be very crucial for the immediate trend which will take Nifty towards 5940-5900 and they will act as strong supports for short to medium term and finally a big range of 5500-5800 will be very vital for mid term to long term trend in Nifty going forward....

The targets there after can be as low as 5000-4500 and even 4000....

However as mentioned the above mentioned levels should be watched out for......

Read this with the article mentioned below -

http://www.equitymaster.com/5MinWrapUp/detail.asp?date=01/16/2013&story=2&title=Who-is-in-the-drivers-seat-of-Sensex-20000.

This is just a personal view and the levels to watch our for on the higher side will be 6100-6200-6350........

Regards

Hrishi

JP, Orchid and R Power.....

At this point JP Associates, R Power and Orchid Chemicals look good for short Term deliver with stop losses below 91, 91 & 98 respectively.

R Power

 





Orchid Chemicals -



JP Associates -

Market update -

Nifty faced resistance near yesterday's highs and slipped by 1 % off those levels. During the trade it even breached 6000 levels in last half an hour, however managed to close positive to end the session.

On daily and hourly charts it showed some negative signs as mentioned earlier, and in response corrected steeply.

Going forward the bias remains cautious to negative with areas to be watch out for as follows -

Supports - 5990-5960-5930-5900
Resistances - 6040-6070-6100

We continue our bias of having stock specific positions instead of entering Long in Nifty at current levels as there is no favorable risk reward and on the short side 5940-5900 will act as good supports, but if broken can mean a fresh downward trend for Nifty going forward, however we would take a call on Nifty at the particular time rather than predicting it right now.

Would like to re iterate that a correction in Nifty at this point of time can be a healthy sign going forward, 5940-5900-5850 are the levels to watch out for.

Warm Regards

Team ATC