RCOM 65CE FROM 1.15 TO 3.9 NOW. LOOK OUR SAMPLE OPTION GOLD CALL
Monday, May 28, 2012
Sunday, May 27, 2012
WEEKLY VIEW
HINDALCO
Hindalco Weekly chart with a beautiful Head and shoulders pattern. It's a huge pattern and the reliability of head and shoulders pattern have gone down in the recent past. So the breakdown if happens should happen with big volumes and we may also hear negative fundamental news for the sector or the company itself.
On the contrary the neckline can also act as support line for a turnaround. Taking support at Weekly lower bollinger band and closing above 5 Week High EMA may result in a trading bounce. Resistance levels for a possible bounce is shown in the last chart. Below 50 and 200 SMA the Trend will remain down.
BANKNIFTY
Bank nifty has closed above 5 Day High EMA again. But daily chart is near a resistance line as shown in the second chart. Price need to get out of this pattern for moving ahead. An upper breakout should also take out the 200 Day SMA for a bigger up move to happen
Breakdown from the pattern shown in daily chart may continue the down trend.
NIFTY FUT
Bulls need to break and close the day and week above 4956.
Bulls will be weak below 4889 and the dotted trend line.
Hindalco Weekly chart with a beautiful Head and shoulders pattern. It's a huge pattern and the reliability of head and shoulders pattern have gone down in the recent past. So the breakdown if happens should happen with big volumes and we may also hear negative fundamental news for the sector or the company itself.
On the contrary the neckline can also act as support line for a turnaround. Taking support at Weekly lower bollinger band and closing above 5 Week High EMA may result in a trading bounce. Resistance levels for a possible bounce is shown in the last chart. Below 50 and 200 SMA the Trend will remain down.
BANKNIFTY
Bank nifty has closed above 5 Day High EMA again. But daily chart is near a resistance line as shown in the second chart. Price need to get out of this pattern for moving ahead. An upper breakout should also take out the 200 Day SMA for a bigger up move to happen
Breakdown from the pattern shown in daily chart may continue the down trend.
NIFTY FUT
Bulls need to break and close the day and week above 4956.
Bulls will be weak below 4889 and the dotted trend line.
Friday, May 25, 2012
ICICIBANK 800PE
OUR ICICIBANK 800PE EXECUTED YESTERDAY @12.5 TODAY IT MADE 20.15 BUT REAL TGT 25 / 50 ON EXPIRY MAY2012....
Thursday, May 24, 2012
Wednesday, May 23, 2012
Nifty Technical Analysis
Nifty day could not sustain above 5 Day High EMA and did a bearish engulfing pattern. Relevance of bearish engulfing may not be that much as it has come in a down trend. If price is able to break below 4849 and 4788 we might see this pattern working well.
Month candle is testing 50 Month SMA. Positional bears would like to see a close
below this level to target 4531.
For bulls strength only if price is able to trade above 5 Day High EMA and 4950
level.
Friday, May 18, 2012
NIFTY TARGET 4820 DONE NOW NXT 4200
WE TOLD WE WAIT FOR NIFTY @4820 on 11may2012 opening.NOW IT DONE AT OPENING. IF NIFTY NOT SUSTAINE ABOVE 4850 OUT FINAL TGT 4200 WILL REACH EASILY.NIFTY TO BE LOOK FOR BOTTOM 4200.by t2m..................
Friday, May 11, 2012
Thursday, May 10, 2012
POSSITIONAL CALL
BHARTIAIRTEL 320CE (MAY2012)ONLY ABOVE 6.80 NO STOPLOSS TGT 14 / 18 ON EXPIRY.
ICICIBANK 800 PE ONLY @12.5 AND TGT 25 / 50 BEFORE EXPIRY( CMP 29 )
ICICIBANK 800 PE ONLY @12.5 AND TGT 25 / 50 BEFORE EXPIRY( CMP 29 )
AN IMPACT OF CRR IN SHARE MARKET
The CRR (cash reserve ratio) is the rate of the money the banks used to keep with the RBI for security without any interest.
How it will impact the banks profitability! For example if bank A collects 10000/- deposit from you then out of the 10000/- he has to keep Rs500 (at the rate of 5%) with the RBI. But central bank always does not pay interest on this deposit money. The net amount left with the bank will be 9500/- . if the CRR is getting hiked then RBI will suck the money from the bank in order to meet the trade deficit. Same time the bank will have money supply deficit to meet all the loan demand. Once the money supply will be reduced then the loan rates or lending rates will increase. 80% of the banks lending will be short term trade loan which used to settle on fortnight basis.
The increase in interest rate will directly impact the housing, experts, banks, automobile sell figure etc in the short term. Since market is more sensitive towards the short term reactions it can lead to the fall in the above sectors. The real jerk will be felt in the monthly sell figure and turnover of the above mentioned sectors. Continuous increase in the CRR may impact the quarterly profitability of the above sectors. Second point is that if it is inline with the increase in the interest rate in the cash deposits then it will directly impact the stock market since the big money will flow out from the high risk sector to the low risk sector resulting low participation in the market.
Repo and reverse repo rate: Repo rate is the interest rate at which the Central bank lends money to the banks. Repo window is a money lending window in which the banks used to take money from RBI at a pre specified interest rate to meet the loan, redemption or consumer demand. Reverse repo is the exactly opposite to repo rate. If excess of liquidity will be in the system then the central bank used to take money from the banking system with the exchange of fixed maturity Government of India security, deep discount bonds, zero coupon bonds etc.
How the banking system works in India? We have different type and structure of banking systems in India.
a. PSB(public Sector Bank)
b. Private Sector Banks
c. Banks govern by Corporations and local bodies.
d. Co-operative banks
All these banks including the Non Banking Financial Institutions, Mutual Funds, Insurance Companies, Stock Exchanges are under the supervision of the central bank (RBI).
RBI has common rule for the financial portfolio of the banks. Basic functionality of the banks are to receive the money from the general public in terms of deposit and to deploy that money in different financial activities like corporate lone, consumer lone, home lone, business lone etc. The general tendency of the financial institution is to earn more profit out of the investment. Hence they used to take higher risk for higher return. If the high risk investment becomes failure then this system will collapse and public saving will get affected. To maintain the safety in the system RBI monitor the investment portfolio of the banks from time to time and instruct the banks to take necessary step to safe guard the investors money.
Same way when the entire system used to be flooded with excess money supply by the depositors, RBI sucks out the excess supply from the system by the way of increasing the CRR. This money sucking mechanism also helps to curtail the inflation. If free money will be available in the system then banks may give for cheaper loan, which in return can fuel the consumer spending, and demand of essential and government subsidies commodities. This may lead to higher demand of precious essential commodity and low supply. Remember essential commodity are nature dependent where as the monetary system is public dependent. This rise in demand may fuel the inflation. To rein the inflation central bank suck out the cheap money from the system to keep a perfect equilibrium between the demand and supply.
The rise in CRR has its good and bad effect. In stock market prospective it has neutral effect if this hike is being taken for a good cause. If this hike is taken to repair the damage done in the system then it is bad for the market.
How it will impact the banks profitability! For example if bank A collects 10000/- deposit from you then out of the 10000/- he has to keep Rs500 (at the rate of 5%) with the RBI. But central bank always does not pay interest on this deposit money. The net amount left with the bank will be 9500/- . if the CRR is getting hiked then RBI will suck the money from the bank in order to meet the trade deficit. Same time the bank will have money supply deficit to meet all the loan demand. Once the money supply will be reduced then the loan rates or lending rates will increase. 80% of the banks lending will be short term trade loan which used to settle on fortnight basis.
The increase in interest rate will directly impact the housing, experts, banks, automobile sell figure etc in the short term. Since market is more sensitive towards the short term reactions it can lead to the fall in the above sectors. The real jerk will be felt in the monthly sell figure and turnover of the above mentioned sectors. Continuous increase in the CRR may impact the quarterly profitability of the above sectors. Second point is that if it is inline with the increase in the interest rate in the cash deposits then it will directly impact the stock market since the big money will flow out from the high risk sector to the low risk sector resulting low participation in the market.
Repo and reverse repo rate: Repo rate is the interest rate at which the Central bank lends money to the banks. Repo window is a money lending window in which the banks used to take money from RBI at a pre specified interest rate to meet the loan, redemption or consumer demand. Reverse repo is the exactly opposite to repo rate. If excess of liquidity will be in the system then the central bank used to take money from the banking system with the exchange of fixed maturity Government of India security, deep discount bonds, zero coupon bonds etc.
How the banking system works in India? We have different type and structure of banking systems in India.
a. PSB(public Sector Bank)
b. Private Sector Banks
c. Banks govern by Corporations and local bodies.
d. Co-operative banks
All these banks including the Non Banking Financial Institutions, Mutual Funds, Insurance Companies, Stock Exchanges are under the supervision of the central bank (RBI).
RBI has common rule for the financial portfolio of the banks. Basic functionality of the banks are to receive the money from the general public in terms of deposit and to deploy that money in different financial activities like corporate lone, consumer lone, home lone, business lone etc. The general tendency of the financial institution is to earn more profit out of the investment. Hence they used to take higher risk for higher return. If the high risk investment becomes failure then this system will collapse and public saving will get affected. To maintain the safety in the system RBI monitor the investment portfolio of the banks from time to time and instruct the banks to take necessary step to safe guard the investors money.
Same way when the entire system used to be flooded with excess money supply by the depositors, RBI sucks out the excess supply from the system by the way of increasing the CRR. This money sucking mechanism also helps to curtail the inflation. If free money will be available in the system then banks may give for cheaper loan, which in return can fuel the consumer spending, and demand of essential and government subsidies commodities. This may lead to higher demand of precious essential commodity and low supply. Remember essential commodity are nature dependent where as the monetary system is public dependent. This rise in demand may fuel the inflation. To rein the inflation central bank suck out the cheap money from the system to keep a perfect equilibrium between the demand and supply.
The rise in CRR has its good and bad effect. In stock market prospective it has neutral effect if this hike is being taken for a good cause. If this hike is taken to repair the damage done in the system then it is bad for the market.
FREE TIPS
NIFTY 5000PE BUY ONLY @ 77 SL 40 TGT 150 / 230
NOTE :NOT EXECUTED ON SAME DAY WHEN WE GIVE THE CALL IT IS MADE LOW ONLY 84.XX,WE EXPECT NIFTY WILL TOUCH 5055 THEN IT FALL UP TO 4820.BUT IT MADE ONLY 5045.80 THEN FALL>>>TGT 4800 WILL SOON IN THIS EXPIRY BY TARGET2MONEY
NOTE :NOT EXECUTED ON SAME DAY WHEN WE GIVE THE CALL IT IS MADE LOW ONLY 84.XX,WE EXPECT NIFTY WILL TOUCH 5055 THEN IT FALL UP TO 4820.BUT IT MADE ONLY 5045.80 THEN FALL>>>TGT 4800 WILL SOON IN THIS EXPIRY BY TARGET2MONEY
Tuesday, May 08, 2012
Friday, May 04, 2012
04MAY 2012 LOOKS
SBI Closed below 200 SMA. There is no volume breakout yet.Price closed below 50% Fibonacci level.If the channel support line shown in 3rd chart does not hold price may fall towards the golden ratio.Bulls shall hope for the channel support line and oversold status to give a bounce.
 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price has violated the rising support line shown in an earlier post.100.68 is the next crucial support. Trading below it may take Crude oil towards the 38.2% Fibonacci level.Weekly chart is showing price below the middle bollinger band. A Weekly close below this level will favor the bears of Crude oil for the coming week.
Tata Steel daily chart shows range breakdown. Price managed to close below 200 Day SMA.Price also closed below 38.2% fibonacci level.Next support is the 50% Fib level and the recent swing low of 415. Breaking below this may target the Golden ratio.For bulls one thing in their favor is that the breakdown is not showing big volumes So if price manage to come back above 200 SMA bulls may save themselves from a big fall.
 |
USDINR Weekly chart is showing negative divergence with MACD indicator.Without correction in price divergence will not be useful.Price has to trade below 20 SMA for possible weakness. Up trend will be safe above the daily cloud.
Subscribe to:
Posts (Atom)
DOUBLE MONEY CALLS OF NOVEMBER2013
