. Here's what Nifty futures did today

Nifty Stages a  minor pullback from near 5500 levels

CALL OF THE DAY :LUPIN PROFIT 12500 RS

MAIL SENT TO PAID CLIENTS TO SELL LUPIN BELOW 820  SL 840 TARGET  770- 750 IN CASH 
SELL @ 822 IN FUT LOT SIZE 500  
MESSAGE GIVEN TO BOOK PROFIT SIN FUT AT 797 THOUGH STOCK WENT TO HIT 787 

722-787=25 RS  500*25=12500 RS INTRADAY DAY BOOKED PROFIT

BIOCON 338-340DONE

BIOCON TODAY MADE FRESH BREAK OUT ABOVE 330  DONE HOPE ALL YOU FOLLOWED MY  UPDATES ON BIOCON

 POST ON JUNE 28:
 http://trendzofmarket.blogspot.in/2013/07/biocon-fresh-break-out-above-330.html

 POST ON JUNE 17
http://trendzofmarket.blogspot.in/2013/07/biocon-heading-to-325-330.html

KEEP HUNTING THE BOTTOM FOR GOLD

Market does not make top or bottom everyday but analysts predict one practically every other day

When asset is in downtrend: one should never hunt for bottom. It’s a stupid and foolish game. Just look at Chart of Gold below and think about Bottoming out calls you would have heard in last six months on Gold.

 

There is a big lesson for everyone. There is no fun fighting the trend. When Bullish trend is over: Buy on dips is a bad strategy. Also, when long term trends change, it may take years before trend reverses itself.

HEALTHY S&P?

It’s not where market is at the end of the day but what market does during the trading day – tells a lot about health of the market

I have been observing since many days that it takes tremendous energy by bears to bring S&P500 down (move against the trend) but it takes practically no energy for market to stage a comeback (in line with the trend). Today’s Intra-day movement was no different. Just look at the Emini chart below: 

Early morning: Huge Volume activity required to bring some correction. But then Buy the dips crowd came; and slowly and steadily with very low volume pulled the market up
Buy the dip crowd is active and natural direction of the market seems to be up. That’s why market is able to rally so much intra-day on so low volumes. If someone looks at the market end of day: Yes it was a Bearish day. But if you look at intra-day movement -the bias appears to be Bullish.

CAN NIFTY HOLD 5500 OR CRACK HARD?

The level of 5500 on Nifty is keenly watched level and bulls and bears are in for interesting tussle before this level gets taken out.

Here’s the Weekly Chart of Nifty

As you can see in the chart above – Nifty moved above 5500 in September 2012 on HOPE and since then has sustained above it. Also, on every correction post bullish move in Sept 2012, Nifty has managed to find support near 5500. So there will be hope among bulls that Nifty can defend 5500 this time again
What’s different this time?
Majority of the sectors and stocks are in terrible bear market. Even the sector that helped Nifty recover i.e. Banks appear to be in big trouble. So, bulls have very few friends to offer help. One stock that appears bullish is Reliance

 Reliance after filling the gap has bounced. The chart appears bullish with upside target of 1100. But can Reliance alone save the market? I doubt that. Reliance can offer some resistance to bearish breakdown attempts but sooner or later – it will give in. At this point of time – anything can happen. Nifty can take support and bounce but eventually – fundamentals are just too -ve for market to survive the breakdown.

S&P500 BUYING OPPORTUNITY?

 
Day before Yesterday was the lowest volume trading day.Yesterday , volume picked up in first few hours of the trading day and then again a long quiet dull day. It looked like half day with traders on leave.

As you can see in the chart above: S&P 500 futures started just below yesterday’s low and kept on selling off. The volume was pretty solid and futures made a low of 1688.75 around 10:00 am CST. That was the end of all excitement and trading volume. S&P futures managed a decent recovery on very low volumes and then remained quiet for the rest of the trading day.
Technically not much has changed. The undertone is still very bullish and there is no follow through on selling. Tomorrow, it would be interesting to see whether there is follow through to today’s weakness or not.
Pullback = Buying Opportunity?
Here’s S&P500 daily chart (spot)

Few days back, S&P500 broke out above 1696-1698 on daily chart. Today’s selling has pulled back the index to breakout point. Does this represent buying opportunity? The answer seems to be yes but remember charts are stretched and any follow through selling can create some nervousness. We are in an interesting place and the benefit of doubt should go to bulls.