Best Trading Rules For You

1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.

2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.

3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.

4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.

5. Don't buy up into a major moving average or sell down into one.

Nifty Outlook For Tomorrow 01-Dec

Today Nifty Futures closed at 5890 which is 45 points higher than its previous close of 5845. Nifty Futures formed a higher bottom at 5777 in comparison with the earlier bottom of 5727 and continued the upward correction. The current corrective trend may test the zone of 6000 - 6050 from where Nifty Futures are likely to come down near the 5800 mark once again. On the weekly chart also, the level of 6000 is showing a strong resistance indicating that the downtrend which started from 6350 is yet to complete. Though the current bottom of 5727 was formed exactly on the timing cycle day of 26th November, Nifty Futures is likely to test this level in the next few trading sessions. The zone of 5840 - 5800 is likely to provide a strong support intraday and Nifty Futures needs to maintain 5780 as it is a crucial support. The remaining long positions should be exited if Nifty Futures move in the zone of 6000 - 6050 as still a continuation of the fall may be seen as per the Elliot Wave Theory counts. The intraday resistances for Nifty Futures are placed at 5950 and 6000 whereas the supports are placed at 5840 and 5780. The intermediate trend reversal level is placed at 5600.

Market Intraday Views For Tomorrow (30-Nov)

In the next session, Nifty would find support at 5,656 and 5,800-5820 may act as a resistance zone. Traders are suggested to follow the strategy of selling at rise as long as Nifty is trading below 5,900. Reality and Banking stocks may face selling at rise while Pharma and Auto sector may appear strong.

Market Technical Views For 29-Nov

While commenting on the stock market for Monday, I found that, market outlook continues to remain negative, and any bounce would be of corrective nature. Market may face some more corrections if it trades below 5750. If it fails to trade above this level then, 5700-5650-5600 levels can be seen in coming trading session. Nifty will face strong resistance in the range of 5900-5950.

Intraday Futures Tips

Nifty Futures
Buy Nifty Futures below 5,825 for target of 5,795-5,770 and stop loss 5,850.

Bank Nifty Futures
Buy Bank Nifty Futures below 11,835 for target of 11,780-11,720 and stop loss 11,870.

LIC Scam Is Bigger Than Satyam Scam

The scale of the LIC Housing Finance scam is possibly bigger than the Satyam scam. The amount involved hasn’t been revealed yet. But the simultaneous raids in several cities by the CBI and arrest of senior officials of PSU banks and financial institutions point to a significantly larger operation.

A few months back, when the Sensex was consolidating in a sideways channel, a stockbroker friend had made a surprising comment: “Bull markets require a nice scam to shoot up to new highs.”

Stock Market For Monday 22-Nov

The market is in now getting into a correction phase. The long term trend remains up. Nifty is likely to face resistance around 6,000 in case of rally. Investors with short term perspective should be cautious during these days but long term investments decisions can be taken on a phased manner at every decline. The immediate support for the Nifty will be at 5,750; if Nifty falls below this level with volumes then we may see the panic bottom of 5,665.

Intraday F&O Tips

HDFC Bank
Sell HDFC Bank futures below 694 for target of Rs 686-680 and stop loss of Rs 602.

Tata Steel
Buy Tata Steel futures above 610 for target of Rs 617-623 and stop loss of Rs 603.

Telecom Sector To Help In Financial Inclusion

The new regulations for inclusion of Business Correspondents provide huge opportunity for telecom sector to work with banks. Telecom can work as quasi banks with 90-95% pre-paid subscribers with their Zero bad debt to enhance financial delivery while best managing the cost of delivery,`` the Chairman of CII Telecom Committee, Sanjay Kapoor, said in an event organised by CII.

Realty Giant Slips Over 3 Per cent

Continuing its southward journey for the second consecutive session, shares of realty giant DLF today plunged over three per cent on BSE. According to media reports, a foreign brokerage firm has downgraded the stock to ''underperform'' from ''neutral''. DLF share declined by 3.23 per cent to a month-low level of Rs 335.25 on Bombay Stock Exchange . In a similar way, it fell 3.24 per cent at Rs 335.20 in the morning trade on the National Stock Exchange .

Technical Views On Market For 15-Nov

Technically, in last trading session, Nifty exhibited a weak and volatile show and moved heavily after breaching the lower support of 6,250 and 6,200. The sentiment has softened considerably. The capital flows from overseas would be influenced by the developments overseas, thus impacting our market. The market is likely to face resistance around 6,250 in the event of rally.

State Bank Of India On A Slipping Path

State Bank of India reported a 22.5 per cent drop in consolidated net profit for the September quarter to Rs 2,363.95 crore on the back of loan-loss provisioning of Rs 2,162 crore. Robust net interest margin and strong traction in the core fee income were key positives, but deterioration in asset quality took a toll on the financials.

However, results are not comparable with the year-ago period due to the merger of State Bank of Indore.

Bank Sector Could Be Underperformer Over Next 1-1.5 yrs

Banking as a sector - on the aggregate - is a little expensive. The prices are reflecting a very optimistic scenario for the next several years to come. It is almost pricing in very strong and profitable growth for the next couple of years whereas we have seen that the risks have not gone away fully. The asset quality of some of the banks is still looking a little suspect and there could be a little bit of volatility going forward. With a view that deposit rates will have to go up from these levels also by about 5200 basis points, the sector may probably be an underperformer over the next 1-1.5 years given that these stocks have run up significantly in the current calendar year. So there could be a little bit of disappointment given the valuations at which most of these banking stocks are trading at.