There is always a bull market somewhere

There is always a bull market on somewhere. The chart above shows the upward trend in Castor Seed traded on the NCDEX. That is the main adantage in trading a variety of asset classes - some assets are always bullish. Diversification is the only free lunch on the Street!

Nifty update - bears are back!

• As mentioned a couple of weeks ago Nifty has broken down below the 5700-6200 range after testing 5700 a few times in the past. Also in doing so it has created a new lower bottom and thus has given a Sell signal as per Dow Theory.
• FIIs continue to sell.
• 5300-5450 is the zone it broke away from before the huge rally to 6300 so this zone should provide support
• Rather than watching for specific zones one should keep an eye on the FII figures. As long as they continue to sell one cannot expect a sustainable bounce back in the nifty
• We are near the 200 DMA which is a zone where there is massive fight between bulls and the bears to decide the next direction. So it is choppy and expected to be choppy for the next few weeks
• It best for investors to be on the sidelines till we get some direction for the market. Trend would change if we go above 5750 and thus create a higher top
• Traders should wait for the the next rally to short the market rather than shorting now

Crude Oil Update

Crude Oil is near the Fibonacci 50% retracement from the mid 2008 high of 6370 to the December 2008 low of 1940. If we remain comfortable above this 4100-4200 zone then the next stop is the 61.8% level of 4670.

Market Update

•Nifty has broken down below the 5700-6200 range after testing 5700 a few times in the past. Also in doing so it has created a new lower bottom and thus has given a Sell signal as per Dow Theory.
•FIIs continue to sell.
•Irony is Western, European and Asian Indices all continue to be in uptrends so the global scenario is positive. Dow Jones has support at 11000, S&P at 1230, FTSE at 5800, Nasadaq at 2650, Dollar index in downtrend…resistance at 81.5 and 83.5
•We are near the 200 DMA which is a zone where there is massive fight between bulls and the bears to decide the next direction. So it is choppy and expected to be choppy for the next few weeks
•For long term investors it is best to be on the sidelines till we get some direction for the market.
•Bank Nifty is now clearly making lower tops and lower bottoms. Every rally is being sold into and is a great shorting opportunity for traders.
•IT Index continues to show the highest relative strength
•Realty continues to remain very bearish

Strong counters in the current market – HCl Tech, Sun Pharma, TCS, Hindalco

Nifty below 5700, bearish

Nifty has broken down below the 5700-6200 range after testing 5700 a few times in the past. Also in doing so it has created a new lower bottom and thus has given a Sell signal as per Dow Theory. FIIs continue to sell. All this shows a high probability of Nifty heading lower.

Agri Commodities bullish

Most Agri commodities are bullish currently. Wheat, Refined Soyabean Oil, mentha oil, pepper, castor seed. Investors should use Commodities as a means of diversification. Those troubled with the volatility of the Nifty would be happy to see the 50-60% returns that most commodities have given in the last 18 months. In India there are three main categories of commodities - Metals, Agricultural and Energies which are traded on the MCX and NCDEX. HNIs have increasingly started using commodities as part of their asset allocation to get superior risk adjusted returns.

SEBI allows Indian investors to trade in global indices

Market regulator SEBI today paved the way for Indian investors to trade in large indices of 24 global exchanges, including that of US, Europe and Asia .

As per a SEBI circular, Indian exchanges will be able to provide trading in derivatives contracts of these global indices.

The entire story can be read here:
http://economictimes.indiatimes.com/markets/regulation/sebi-allows-indian-investors-to-trade-in-global-indices/articleshow/7260398.cms