#210 Nifty Update:India to 'Modi'fy themselves

NaMo NaMo thats what all Indians Chanting since last 24 hours. Its time to change ourselves and 'Modi'fy ourselves in line with developed world. Some of our policies are still traditional which is hindering our growth which may be cleared on a fast track as now we have a stable government. What it means for Indian stock market to have a stable government? As my Analyst says

"The incoming of a Stable government, which after 30 years, in 1984 the last government was with a clear majority. So all the people in the country has not experience of what is means to be have single majority government. If the government manages it well, there will be difficulties in the initial year but once they clear the difficulties, We believe the growth will start to pick up. And if they will be able to fulfill it what they have mention in there manifesto,. We believe that one should be in equities and should stay into the quality stocks for a much longer period than ever before. So it is a multi-year bull run and this is the start of it."

Technically my views are same as my Analyst, which means probability of Green wave in Nifty is about to yet start. Still Indian industry is yet to recover and when they will start performing it would still shoot up our markets further. Since 24th April we were long on nifty (6840) and are both targets 7200 and 7480 has been achieved. But as i mentioned in my last post we extend our target to 8031. Looking at candlestick pattern on daily we are not getting any clear sign while indicators still so positive that we are getting clear upside from here. Expect a volatile month end on Nifty but hold your longs.

Our recommendation: HOLD long with tgts 7600/8031 with trailing SL of 6790 on weekly closing basis

*Note:All the words used in post are correlated to market and it please take position on my recommendation after careful study and at your risk

#209 Nifty Update: Bear's Break Fail

Modi wave continues since we mentioned in the last post. Last phase of Voting was today and voters have turned out in huge numbers. All the states witnessed % rise in total voters over 2009 which is a good sign of indian getting aware of their biggest responsibility. What i personally like about Modi is his personality, strong and Firm towards his work and philosophy. Coming back to economy, we are still in not in a perfect stage. CPI was announced today which is at 3 months high at 8.59% while IIP is still contracting at -0.1% vs 1.1% a year ago. We need some reforms in policies to spur up industrial production not merely NDA win. Quarterly results of corporate are improving which is a good sign of some bottoming out of markets. Last two sessions have been like a dream to bull players. Nifty has moved almost 350 points in 2 sessions and expect some more in next 4 sessions. Technically Nifty has breached all resistance level and all the breaks applied by bears have failed to stop bulls wave. As i have marked on the graph, nifty has just came out of a consolidation pattern "Expanding Triangle" which suggest a upmove which has already taken a start up since last two session. Looking at the indicators, all are still nowhere near to high point which is strongly supporting our bull biased view.

Our Strategy: We stick to our previous post upside view and tgts of 7200/7480 with extended long term target 8031. with trailing SL at 6650 on weekly closing basis

#203 Nifty Update: Bears playing cricket while Bulls trending Nifty

Recent Asia series have been a disappoint for Indian cricket fans while at the same time Nifty has given some marvelous returns to traders. We have shown under-performance at cricketing field and also at the equity field but we have recently covered some respect on Nifty while we need to do alot at the cricket field. Our Final tgt 6310 on Nifty has been achieved against the Long call initated at 6000 on 4th Feb. Russia's invade plan of ukraine had got hell out of the world but than it was relief when Russia called back their troops. GDP has been  better off for us and also trade deficit has narrowed compared to GDP which is a good factor to keep in watch for our economy recovery. Election date has been declared today which will start from 7th April and result will be declared on 16th May. technically all this factors have been taken positively by markets and we expect positive momentum to continue. RSI and MACD are in 3rd gear and are ready to gain full momentum while on the 4th gear before they resist at 5th. Index is trading comfortably above all the long term moving averages. As per Elliot wave 6398 is the first stop were Nifty could stop. We expect a consolidation or correction from the levels of 6400.

Our recommendation: Risk takers hold long with the tgt of 6398 and trailing sl 6266 while Safe traders could wait for some confirmed signal before taking fresh trade.