Friday, February 15, 2013

After Market Opening Chart Check
Indian market witnessed a volatile session yesterday. Nifty made a high of 5940 in the opening session but gradually fell down to 5884. However, it finally closed with a loss of 36 points at 5897. 
It seems the Nifty (spot) has formed an upper bound at 6100 level and it appears that a close below 6000  have started a correction. However, we are NOT observing a decisive breakdown, on the contrary buying is seen at around the support zone of 5860--5870 (spot). Thus a bounce is expected to come soon. However, Nifty till yesterday was sitting at a crucial support of 5880, which got broken today in the morning trade, and is a matter of concern. This might drag the Nifty (Spot) to 5940, from where the buying could start again if this zone break. The traders are suggested to either stay out of the markets, or Buy/Sell Nifty Call/Put near the support/resistance zone. I strongly feel that this is the last leg of correction, before the pre-budget rally kicks in. Nifty spot is now at 5863, which is expected to recover in the coming days. The broader market is also expected to recover very soon, as the correction in the small and mid cap space is already overdone. 
RESISTANCE: 5925/ 5940
SUPPORT: 5880/ 5840
Now Southern Online Bio Tech Ltd has come up with better results. The investors can start accumulating the stock, as the story is now sure shot, and will fetch good returns in the coming days. 
Selling of the shares of U B Holdings Ltd (CMP: Rs.63.45) due to some media reports regarding Kingfisher Airlines Ltd does not make sense at this level, when it has already become less than half of its recent high of Rs.140 plus.Why would the banks give out  a statement in the media, instead they should inform the stock exchanges? Isn't it? The things looks fishy from my end. SEBI should take note of this case, as the real intention seems to be different.