IS THERE A BOUCE BACK ON CARDS?

Markets Loses 5% From Diwali day Top In Just Six trading Sessions , Where is the Support ??

When Everyone on Street was Giving Bullish Commentary in Oct Last Week , I came up with a detailed Report Saying that Market will make a Top on Diwali Day (mahurat trading) And After that Sensex can correct 10% at least for 19K Tgts ..
Its been just Six Trading sessions Since Diwali day & We've fallen 5% without any big -ve trigger ... Sensex Today Touched 20,250 from Diwali day peak of 21,321 ...
I HAVE  SENT MAIL ON OCT 29 TH TO CLIENTS

http://trendzofmarket.blogspot.in/2013/11/will-history-repeat-itself-again-post.html 

Anyhow Now Everyone seems to be on panic mode , Although Selected midcaps are still outperforming but Bull market euphoria seems to be getting over day by day ...Now Question that comes to mind is when will market stop falling ??  Well Lets check chart now (As I'm a technical Analyst  :-D ) ...Last time (In Sept) When Sensex fell 5-6% It took supp at 50 dma & bounced , Now Again I'm betting that Sensex Should Take supp ard 50 dma which comes at 20150 Sensex levels , As shown in chart ... Trigger can be SBI results tomorrow , Who Knows , a +ve surprise from SBI tomorrow & PSU banks will be back in Action before u know it , Also with Thus (Moharram)  being a Holiday , Tomorrow Bears might look to book some Solid gains ahead of Long weekend (Vols Shud be Sluggish on friday)...I dont read much into Fii data but they are still buying in cash , Although they are selling double qty in Future segment ... So now Sensex 20150 / Nifty 5950-60 Spot shuld be levels one should look for trend reversal in market ... Bank nifty 10.3-10.4K is strong supp as well & Again Saying Sbi Results could be next big trigger for our market direction now ...Although  A Close below 20100 Sensex & 5950 Nifty spot will confirm that Down Trend will continue & Bulls will run for cover & Sensex will hit 19.5-19K very soon ..

Nifty is right above 50 dma i.e. 5974. But what is disturbing straight line of decline. Having said that, the market still has bullish structure which means Nifty continues to be BUY on declines. 
What does this mean?

Nifty is not yet ready to breakout to NEW HIGH but broader market looks good and one should look at stock specific activity. Keep an eye on support around 50 dma. A breach below 50 dma will be the first warning sign for bulls. Right now, the best strategy: Focus on individual stocks.

The 50 dma on Nifty is 5974

Will HISTORY REPEAT ITSELF AGAIN ?? POST DIWALI

MY MAIL TO PAID CLIENTS ON OCT 29 TH TOLD TO BUY 6200 PE @92 HIT 150 TODAY

AFTER THAT NIFTY CORRECTED ALMOST 5% 300 POINTS AND SENSEX NEARLY 1000 POINTS

JOIN TRENDZOFMARKET  TO GET SUCH ALERTS AND VIEWS

WILL SENSEX Top out on Diwali Day ?? Will HISTORY REPEAT ITSELF AGAIN ??

In 2008 SENSEX Topped Out in JAN , making Clear RSI -ve Div Near 21.2K

 

In 2010 Sensex Topped out on Diwali Day @ 21.1K & Crashed 10% in Next 2 weeks (RSI -ve Div was there)

In 2013 Sensex Can Top Out Again Near 21K & Can Crash 10-12 % in November Itself (RSI -ve Div is currently in making)

 

 

 

 

STORY OF MID CAP IT BULL MARKET

Last 1.5 years has been great for Frontline IT stocks be it TCS, HCL, Infosys, Tech Mahindra and now the money seems to be moving in all Technology stocks especially midcap and small cap companies. A wealth creation opportunity seems to be developing in the space with USDINR new base set at Rs. 62. 

Let us look at various IT midcap stocks technical status.

MindTree: The Bull market here was in sync with frontline stocks

The stock is buy on deep deep declines now. The Bull market is not over and should be on radar for investment purpose.

Persistent Technologies: Runaway move

The stock is buy on deep deep declines now. The Bull market is not over and should be on radar for investment purpose on deep declines like 50 week ma.

Hexaware: WAITING FOR BREAKOUT

Hexaware is also one of the strong stock. The stock needs to breakout above 135 on weekly basis to restart fresh momentum move in the stock. Keep an eye on the breakout.

NIIT Technologies: WAITING FOR BREAKOUT

NIIT Tech has been in Bull market for long time now but needs to breakout above 305 to restart fresh momentum move. The breakout appears likely.

KPIT: Already Broken out

KPIT has broken out above 140 and seems to be consolidating. It’s only a matter of time before stock takes off in a big big way.

Infotec Enterprises: Already Broken out

Infotech Enterprises broke out above 200 and then just took off in a major bullish way. The stock saw pretty vertical upmove post breakout.

Eclerx: Already Broken Out

Eclerx broke out above 890 and the stock is buy on pullback. The stock has much higher levels to climb

Sasken: Breakout on weekly chart

Sasken broke out above 140 and the stock is buy on pullback. The stock looks good for more and seems to be turning around after long time

Tata Elxsi: Momentum Push

Tata Elxsi also seems to be turning around and moving in momentum steps. The stock appears buy on pullback near 20 dma

WHAT DOES THIS ALL MEAN?
Make a List of all the above IT stocks with breakout levels and probable buy areas and then look to add in the portfolio when stock declines. The Bull market in the sector appears structural and can surprise investors on the upside. The midcap IT sector appears very bullish on charts

DEN NETWORK: A RELOOK INTO THE STOCK

Here’s the detailed Technical Analysis of DEN Networks

Let’s look at the Weekly Chart

As you can see in the chart above, DEN Networks broke out above 110 way back in July 2012. Post breakout, it rallied and then pulled back to 110 only to rally higher. The rally gathered momentum and stock moved from 110 to 240 in less than 6 months. The stock stalled at 240: weekly resistance level and then sold off from 240 to current levels of 138.
The Big Question: Is the Bull Market over?
The pullback from 240 to now levels of 138 appears very substantial and does raise serious questions on the technical health of the stock. Let us assess from Fibonacci perspective. 
Fibonacci Retracements are ratios used to identify potential reversal levels. The most popular Fibonacci Retracements are 50%, 61.8% and 38.2%. 

As you can see in the chart above, stock currently seems to have pulled back to 50% Fibo levels which appears ideal support levels. But there seems to be no buying appearing in the stock. Below this, the stock can slip to 61.8% retracement levels which coincides with near breakout levels of 116.
What does this mean?
DEN Networks is in BULL MARKET but has lost momentum. The stock is right now at important Fibo support level and if it finds support here: this can be attractive level to buy the stock but with tight stop loss of 5% from current levels of 138. If stock breaks current levels, then it can decline to 110-116 levels. Even if stock finds support here, one has to exhibit tons of patience. The broader assumption is that stock has much higher levels to climb in future and hence this level can be attractive entry point. But if it does not work out, one should be prepared to exit. The stock will become TOTAL AVOID below 110-112 levels.
This is not a momentum stock. One should invest only if one is comfortable with the stock and has more knowledge about the company and is comfortable with the space and stock. The analysis is for readers who are interested in DEN Networks stock.