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The Indian market showed resilience in trade today and bounced back in the last half-an-hour of trade even as the global markets witnessed sell-off on US debt ceiling concerns. The strength, back home, was largely on account of dollar inflows after the US national hold established its plan to continue with its amount easing program. After investing in shares worth Rs 13,057.80 crore in September, foreign institutional investors have bought equities worth Rs 555.20 crore in till October 3. While there is confidence perhaps a segment of members that the market is probably to observe liquidity-driven rally, analysts are not so gung-ho on the leads of Nifty breaching 6,000 and sustaining it for a long time. The market is giving mixed signals, they say. While the Nifty pared losses to close on a flat note today, Bank Nifty which has a higher weightage on the index closed 1.13 per cent lower. Also, the macroeconomic situation doesn’t warrant the market to move sharply higher due to factors such as subdued domestic demand, monetary tightening and possible cuts in fiscal expenditure. “Our base case has been that the markets will be range-bound at 18,500-20,500 as weak economic and earnings growth caps the upside while hopes of rate cuts and policy measures protect the downside. The markets have rallied sharply since Raghuram Rajan took over as RBI Governor, rising 9 per cent since September 4 and now trade near the top-end of the range. We expect markets to correct 6-8 per cent from current levels as the RBI’s credit policy belies high market expectations,” a BofA-ML report said. Analysts see Nifty in a range of 200 points with stock-specific action this earnings season. “In the short period, the results season, which starts this Friday, is going to be critical. Our view is that markets are not going anywhere as far as October is stressed; we will almost continue at similar levels with stock-specific motion based on the acts and the results,” “Typically in this kind of scenario when the breadth is showing strength, you will not see big declines happening in the overall market. So, my belief is that we will continue to do this range of about 5,820-5,830 on the downside, give and take a few points, and about 5,950-5,980 on the upside,” he said.
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I am a actual competitive investor by nature, I desire to take enormous opportunities when I recognize it is a ideal entry point. Like Livermore, I was also a boy speculator and had no issues taking to induce on the big trades and profited develop many of them. However, as I full-blown as a trader I learned this way of trading leads to much increased draw downs of financing and enormous quantities of stress holding such large placements and can lead to making bad decisions due to emotions. Also timing has to be almost perfect to be able to hold the position. I have manage this behavior by following the 1% AUM risk principle for position sizing, using OTM options to explicit big trades, and pyramiding inside indexes for big placements sizing for decreased risk of unpredictability. The key to achievements for ideal and most solid long phase finances employers is appropriate situation dimension, not big investments.
Yes, We had taken long position on NF 5774 as per our long term analysis:
The majority of people create the similar mistake with our money repeatedly again: Buying at high from greed and selling at low from fear, despite understanding on an intelligent level that it is a very bad strategy
An auction market for which participants buy or sell commodity/future contracts towards delivery upon a certain future date. Trading is continued by using open yelling and hand signals inside a trading pit.
NOTE: Volume in the futures market generally grows when the stock market outlook is unsure.
WHAT FOR TODAY?
Nifty Future is trading 5806 to 5809
Just watch selling pressure 5836 to 5857
Your Stop loss 5876
Targets will be 5755 to 5700
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BASIC of India Stock Market
Maximum of the trading in the Indian stock market takes position on their two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has become in existence since 1875. The NSE, however, was established in 1992 and also began trading in 1994. Then again, both of the exchanges follow the similar trading mechanism, trading hours, settlement process, etc. At the last count, the BSE had up to 4,700 listed firms, on the other hand the rival NSE had about 1,200. Due to all the listed firms on the BSE, only about 500 firms constitute greater than 90% of its market capitalization; the rest of the crowd is made up of extremely illiquid shares.
Nifty closed up 8.40 points at 5882.25 while Nifty future closed at 5947.30, a premium of 65.05 points. FIIs bought in Cash, net buy 172.15 Crore while DIIs sold in Cash, net sell 362.11 Crore. FIIs bought in Index future but sold in Index Option, Stock future, net buy 838.66 Crore
What is for Today…?
The positional longs are advised to use 5800 level as stop loss on a closing and intraday basis respectively. For intraday support, exist at 5883! On the upper side we see it zooming to 5987, 6029 mark. Sooner or later Nifty futures will cross the 6200 mark!
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