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Unlock This ArticleI clearly Updated on last Thursday in read line : “I will suggest to buy Nifty 5572-5606”
On Friday, the Democrats and Republicans made a joint and civil statement to the press following a brief meeting on the fiscal cliff. It signaled to the markets they are trying to begin this round of talks in a more professional manner, which was not the case in 2011. Therefore, something changed today…it was a step in the right direction. After the rare show of political civility, the tone of the markets improved immediately. The S&P 500 rallied to close 16 points off the session low.
Since warning of slowing stock momentum on September 24, we have seen little to get us interested again in stocks. Friday was better. On the charts, let’s start with the good news; the S&P 500 found buyers at a logical level (see green arrow below).
Based on numerous factors, we can envision a countertrend rally back toward the 1388-1448 range on the S&P 500. A similar A-B-C rally took place in May 2012. The rally began at point A, moved to point B, and then made a lower low at point C (see below). Markets often have symmetry and a move toward point B on the right is certainly one possible scenario for the next week or so. Keep in mind, point C would represent a low lower than Friday’s low of 1359. A good next step is to clear resistance near the pink line below, which sits at 1362 on the S&P 500.
Another scenario is the S&P 500 holding below the downward-sloping trendline from the April and May highs (see red arrows). Stocks broke above the same trendline in August (see breakout below). Now the trendline may act as resistance; it sits near 1370 on the S&P 500.
The biggest obstacle to a rally may be Europe. There is talk of another round of “haircuts” for holders of Greek debt, which sides with the “risk-off” camp. The German DAX is clearly in a downtrend and has broken some key support levels (see orange arrow).
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Once MCX Aluminium open downside you can sell it. Targets: 106.6-106.4.
You can buy mentha oil: 1213-1219
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(Updated on 16-11-2012 at 08.20 AM)
Crossover below 5642 may take NF up to 5631-5625.
Break below 5615 will drag up to 5606-5600.
5580-5590 good Trendline Support.
If Trades above 5637 and not breaking 5620 then
Expect 5657-5663 which is intraday hurdle.
Crossover 5668 rally up to 5685 Not ruled out.
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Nifty Spot have support 5571-5609
our trading range screen for the 30 stocks that make up the Dow Jones Industrial Average. (Please view the description below the screen to learn how we calculate overbought and oversold levels.)
As shown, a whopping 23 of the 30 Dow stocks are now in oversold territory. The most oversold stocks in the index are Chevron (CVX), Disney (DIS), United Health (UNH), Microsoft (MSFT), Procter & Gamble (PG), Wal-Mart (WMT) and Exxon Mobil (WMT). Only three Dow stocks are above their 50-day moving averages — Boeing (BA), Bank of America (BAC) and Home Depot (HD). Home Depot is actually in overbought territory after doing well yesterday.
With the Dow now up less than 4% year to date, more and more of the names in the index are moving into the red for the year. There are now 10 Dow stocks that are down year to date, with Hewlett Packard (HPQ) down by far the most at -48.63%. Intel (INTC) is down the second most at -16.45%, while McDonald’s (MCD) has the third biggest declines at -15.02%. On the bright side, Bank of America (BAC) is still up 66% year to date, but at just $9.24/share, it has the second lowest weighting in the Dow behind Alcoa (AA).
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(Updated on 12-11-2012 at 07.30 AM)
On Friday written below 5730 expect 5700.
5706-5694 intraday support.
Hurdle at 5734-5743.
Crossover may take Nf to 5755-5764.
Break below 5684 with volumes and if sustains
then slide up to 5664-5640.
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