Interestin​g views of Warren Buffet- Stop Coddling the Super-Rich

Greetings for Independence day !

There is  an interesting article by Warren Buffett.

You can read full article by clicking on this link.

http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html

Nifty may retrace to 5650-5700. All Eye on Infosys results.

Nifty has had a negative closing week after   a  strong run up to key resistance level of  5950.It may retrace  back to 5650-5700. This zone offers a good buying opportunity. Market will look for Infosys results to be announced on next Friday.
Meanwhile , Pharma stocks are showing some signs of strength.Ajanta Pharma has made multiple bottom at 195  and offers  good buying opportunity at 220-225 with strong support at 200 and the next target seems to be 250-260-270.  It has broken out with huge surge in volume.Biocon and JB Pharma are another stocks in this space which are  showing relative strength. Here one thing is to noted that JB Pharma is trading at life time high and life time highs should always be bought.It has support at 130 and traget is 200.
 Something is happening in Graphite  space.Stocks like Graphite India and HEG  are showing buying patterns on the charts.

Nifty above all moving averages

Nifty broke out of the trading range of 5400-5550 and broke out of this range and closed above all the moving averages . Nifty may find base here and then move upwards.

Banking stocks are strong on charts. Bank of Baroda, Yes bank  are poised to move up. Raymond has also broke out with good volumes.ABG ship yard, VIP can also be bought on dips.

Geopolitical events will lead to volatility

Nifty again found support at 5400 again  for the second time in the last  week and closed at 5445. Now 5150 and 5250 remain two key support levels and resistances are at 5530-5550 and 5600.


For the coming week market participants will closely watch the damage caused by the tragedy and destruction from Japan's massive earth quake and tsunami. There will also be concern about the potential for more unrest in the Middle East, and have lingering fear about Europe's sovereign debt problems. The  market is also likely to get affected by  the direction of oil price.

Therefore, market may remain volatile in the coming week.

Bata India, Jubilant foods, Coromadel are tarding above all the moving averages and are showing relative strength.

Nifty above 5300 : needs to sustain above it

Nifty did go below 5300  thus violating a crucial pivot point but  had an equally sharp bounce back. The improvement in geo -political situation may also improve sentiments and  lower crude prices  will augur well for Oil Marketing companies like BPCL, HPCL and IOC.
Banks stocks had a sharp bounce back and may continue to rise further. Budget related stocks from fertilizer sectors like United Phosphorous are expected to do well .
Jubilant foods , Kiri dyes are good long term bets at this satge.
Inflation is expected to cool down in coming months and China is also tightening its credit policy this will result in softening of commodity prices which again help in cooling off inflationary pressure.Therefore, this dip offers  an opportunity to  buy  with 25 % of your capital ( out of capital allocated for equity investment)

As long as Nifty is able to trade above 5300 the longer term bull market remains intact.

5300 is crucial now : Buy Kiri dyes in small qunatity

Nifty made a  down move as we wrote  this  probability of its going down  in our earlier post. Now as per the Dow theory as long as Nifty is able to trade above 5300 the bull market remains intact . Nifty going below 5300 will be a sign of reversal of   uptrend on weekly charts . If this happens then then the  long term trend line on Nifty weekly charts will be violated and the markets will be in bear phase.
Lets see how the events fan out in the coming week. Rising Inflation is already priced in. Geopolitical tension is likely to subside and back home the focus will be on budget session.
Pharma , Fertilizer and IT stocks will be on our radar .

Kiri dyes and chemicals offer a good  buying opportunity for long term investment of one year horizon. One should buy in small quantity  by buying  25 %  at a time.

Nifty Below 200 EMa: Inflation and geo Political Head winds take toll

Nifty is now trading below 200 EMA . Rising food inflation, Geo Political Tensions in Egypt resulted in negative sentiments. We see some more downside  till 5300-5400 levels with bouts of volatility in coming few days. Thereafter market participants will look for the union budget and how the Government plan to go ahead with reforms. Banking stock have corrected a lot and offer opportunity to buy at every decline.Though development in Egpyt may see rise in Crude oil prices and fear of third oil shock.