SHREE GANESHAY NAMAAH !

Five reasons for investors to head for the sidelines !

Instability in Europe, protests in the streets of US cities and the implosion of a big Wall Street trading firm—it all adds up to be a good time for some investors to hang on the sidelines until the storms pass.

Such volatility is often thought as good for traders. When others are panicking, straight thinkers can slip in and make profits off the carelessness of others.

Govt's new divestment strategy eyes total of Rs 91K-cr

Euro zone will survive, says expert

Andrew Sheng, one of the rare financial wizards, has served as policy maker and regulator in several countries including China, Hong Kong and Malaysia.

A Chinese Malaysian by birth he was assistant governor at the Malaysian Central Bank in the 80’s. In the 90’s he served the Hong Kong Government as head of the Reserves Management and then chairman of the Securities and Futures Commission in Hong Kong.

Currently, he is chief advisor to the China Banking Regulatory Commission. Also, he is board member of the Qatar Financial Center Regulatory Authority

2011- Jan High – 6181.05 –Not Cross Its January High Of 6181.05, 10Feb Close @ 5225 (Made Low Of 5177, But Close Above 5221) N Again on 20th June (Made Low Of 5182.40, But Close Above5221 ). Once Again On 5th August Close @ (Made Low 5116.45, But Close Above 5221) If Closes Below 5221 (2009 High) Levels than Negative For Market. NIFTY CLOSED BELOW LOW OF JAN ON 8TH .Still No Signal For Buy. ITS SIGN OF SELL….. !!! FREE FALL MARKET FROM CLOSING BELOW JAN. LOW . CMP @ 5066.75. ! MADE LOW OF 4765 ! I MENTIONED HERE NIFTY HAS TO CLOSE ABOVE 5221, LAST EXPIRY OF OCT CLOSE @ 5181.95, CMP NOW @ 5330, YESTERDAY MADE LOW OF 5221.15, SO THIS EXPIRY IT HAS TO CLOSE ABOVE 5221 THEN ONLY MORE UPSIDE POSSIBLE CLOSING BELOW 5221 WIL LEAD TO 4840 FUTURE ! CLOSE AT 4932.95 ! ENJOY SHORT CALLLLL ! Tgt Git Low Made 4845.25 ! N Bouce Back To 4922 Level Again ! BEFORE EXPIRY WE MAY C NIFTY AROUND 5050 / 5100 !

Expiry Stats :
Open : 5241.15
High : 5402.75
Low : 4845.25
Close: 4914.60
Avg. : 5100.94

Yearly (2011) : 
Open : 6177.45
High : 6181.05
Low : 4720.00
Close: 4914.60
Avg. : 5498.28

NIFTY FUTURE 

R5 : 5065
R4 : 5025
R3 : 4995
R2 : 4952
R1 : 4932

CMP: 4914.60

S1 : 4900
S2 : 4878
S3 : 4850
S4 : 4829
S5 : 4810

Market Updates : 

Sensex, Nifty settle at 6-week lows

Market recovers in late trade; breadth remains weak

The WEEK THAT WAS !

Derivatives: Outlook remains bearish as global investors go light on the emerging markets

Some support at the 4800 levels is evident from call buying and also on aggressive nifty put writing at the 4800 and below strikes, but overall trend continues to remain negative

Foreign Institutional Investors (FIIs) dumped Indian equities during the previous week in a delayed reaction to array of negative feed during the past few weeks. The Euro zone debt worries continued to linger and become more contagion globally. The Rupee weakness against the USD continues to threaten domestic growth, while the RBI is expected to further hike policy rate by further 25 bps going ahead in order to thame inflation. The Q2FY12 corporate results failed to give any positive direction. Thus the negative feeds from both the global and the domestic market resulted in steep selling in the Indian market. The market fell in all the five trading days correcting a total of 263.05 points to close at 4905.80 points on Friday.

During the previous week till Thursday, FIIs sold shares worth Rs 1093.86 crore. Towards the close of the week, few of the midcap counters witnessed steep fall due to margin call and aggressive long covering in the futures & options (F&O) segment. However the nifty November future closed at a premium of 8.80 points at 4914.60 on Friday. During the weekunder review, the index future segment shed open interest (OI) brought earlier, while the stock future segment witnessed addition of OI due to fresh short buildup. On Friday, the nifty November future shed 14.04 lakh shares in OI to take its total OI to 2.36 crore shares. However on Friday, the nifty December future added 13.71 lakh shares in OI due to short buildup to take its total OI to 74.74 lakh shares.

Overall for the week the nifty November future shed 30.59 lakh shares in OI, while the nifty December future added 54.61 lakh shares in OI. Most of the OI addition in the December series seems to be on the short side, as a result the market is expected to trade with a negative bias. The overall market mood continues to remain negative although there could be some support at the 4800 levels evident from call buying at this level on Friday. There was also aggressive nifty put writing at the 4800 and below strikes. The average volume in the F&O segment during the week was very much higher at Rs 157144.51 crore as compared to Rs 103610.38 crore during the previous week.

A lot going ahead will depend on the RBI policy move on the interest rate and the global economy. Overall the trend for the domestic market remains bearish as the global portfolio investors are going light on the emerging markets. There could be some support at the 4800 levels for the nifty in the short term. Nevertheless the bias remains negative for the market.

Market may remain volatile ahead of F&O expiry

High volatility, which has been the order of the day, is expected to continue next week astraders roll over positions in futures & options (F&O) segment from the near-month November 2011 series to December 2011 series. The near-month November 2011 F&Ocontracts expire on Thursday, 24 November 2011.

Shares of exporters and IT firms may edge higher and those of importers may edge lower, with the rupee hitting 32-month low below 51 against the dollar on Friday, 18 November 2011. A weak rupee will increase the competitive advantage of Indianexporters by making their products cheaper for overseas buyers. On the other hand, for those firms with high imports, a weak rupee will increase import costs. As far the IT sector is concerned, a weak rupee boosts revenue of IT companies in rupee terms as the sector derives a lion's share of revenue from exports.

Aviation shares may remain in focus on reports that the Union Cabinet will soon again discuss a proposal to permit foreign carriers to buy stakes in local airlines, a step that will likely help Indian carriers raise money. The planned meeting comes against the backdrop of mounting losses at all Indian carriers except for IndiGo, largely due to high jetfuel prices, a depreciating rupee and fierce competition.

India allows foreign financial investors to take a 49% stake in airlines but foreign airlines cannot. The government has previously discussed the issue of allowing foreign airlines to buy stakes in local aviation companies, but it is yet to give the go-ahead. Airlines operating in India have been hammered by crude oil prices, a fall in the value of the rupee and competition which hasn't allowed them to fully pass on the higher costs to customers.

Corporate earnings have been weak. The combined net profit of a total of 3,687 companies declined 35.9% to Rs 67529 crore on 20.6% growth in sales to Rs 1135564 crore in Q2 September 2011 over Q2 September 2010. The Q2 earnings season got over on Tuesday, 15 November 2011.

Data showing selling by foreign funds recently also weighed on sentiment. Foreign institutional investors (FIIs) sold shares worth Rs 195.20 crore on Thursday, 17 November 2011, as per the provisional data from the stock exchanges. Their outflow totaled Rs 1093.86 crore in three trading session from 15 to 17 November 2011.

Note : Data From Capital Market And Money Control !

Note : Kindly Trade With Stoploss !