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• Raghav’s Picks:Weekly Technical Outlook for the BSE Sensex and NSE Nifty – 12th August 2007

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  Raghvendra Narendra Dhoot    Group moderator

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  Raghav’s Picks:Weekly Technical Outlook for the BSE Sensex and NSE Nifty – 12th August 2007

  BSE Sensex – Reuters – .BSESN
  NSE Nifty – Reuters Symbol – .NSEI
  
  The 270 point fall in the Sensex (Nifty 68 points) over the previous week does not completely reflect the huge intraday volatile swings that were witnessed last week.
  
  Going forward, the Sensex and Nifty will look towards cues from the global markets for the short-term direction.
  However there are enough signs to indicate that the downside risk from current levels is limited:
  • There is a lot of cash waiting on the sidelines to enter the markets.
  • There are huge shorts created in the markets, and we could see short covering soon.
  • The domestic fundamentals are still intact.
  • The Sensex bounced back from 14570 levels on Friday and just managed to close above the 50 Day Moving Average.
  
  Going forward, if the global markets stabilize, we could consolidate between 14800 and 15300 for a while, before moving up again.
  
  This is a great opportunity to buy into blue chips with a 6-12+ month horizon.
  
  Small traders and those playing on leveraged stakes need to be very cautious hence forth, not only in the short term but also beyond as going forward we will see more such instances of global cues adversely affecting the domestic markets.
  
  For detailed market analysis, investment, trading calls and, advisory services with respect to investing in Indian Markets, please mail me on rnd24566@gmail.com or use the personal message link: http://www.xing.com/go/privatemessage/RaghvendraNarendra_Dho...
  
  • 12 Aug 2007, 3:38 pm
  Raghvendra Narendra Dhoot wrote: > BSE Sensex – Reuters – .BSESN > NSE Nifty – Reuters Symbol – .NSEI > > The 270 point fall in the Sensex (Nifty 68 points) over the previous > week does not completely reflect the huge intraday volatile swings > that were witnessed last week. > > Going forward, the Sensex and Nifty will look towards cues from the > global markets for the short-term direction. > However there are enough signs to indicate that the downside risk > from current levels is limited: > • There is a lot of cash waiting on the sidelines to enter the > markets. > • There are huge shorts created in the markets, and we could see > short covering soon. > • The domestic fundamentals are still intact. > • The Sensex bounced back from 14570 levels on Friday and just > managed to close above the 50 Day Moving Average. > > Going forward, if the global markets stabilize, we could consolidate > between 14800 and 15300 for a while, before moving up again. > > This is a great opportunity to buy into blue chips with a 6-12+ month > horizon. > > Small traders and those playing on leveraged stakes need to be very > cautious hence forth, not only in the short term but also beyond as > going forward we will see more such instances of global cues > adversely affecting the domestic markets. > > For detailed market analysis, investment, trading calls and, advisory > services with respect to investing in Indian Markets, please mail me > on rnd24566@gmail.com or use the personal message link: > http://www.xing.com/go/privatemessage/RaghvendraNarendra_Dhoot