This is called buying the dip?

In Bull market: one should Buy the Dips.

What does it mean to “buy the dip”?
“Buy the dip” means pretty much exactly as it sounds. It means buying the weakness and lowering average acquisition price in anticipation of a big move in the future. It also means one is of the opinion that any weakness or correction in the market is just temporary and eventually market will go higher.
We all have been hearing and witnessing how bullish S&P500 has been in 2013. Well just see how Buy the dips is working right now even on intra-day basis.
Here’s intra-day movement of Emini (S&P futures) of last 5 trading days:

August 07 2013:
 

Early morning sell off and then recovery
August 08 2013

 

The same happened on August 08 too. Early morning sell off and then recovery
August 09 2013

 

The same happened on August 09 too. Early morning sell off and then recovery
August 12 2013

 

There was a big gap down opening and then one way recovery. Today also market sold off in the morning only to recover in the second half
August 13 2013
 

What’s common in all the above charts:

Temporary Early morning weakness
Buy the dips crowd comes in
Takes the market higher rest of the trading day.
The best part is that above is happening with amazing consistency. That’s what happens in Bull market: Dip buyers are always active.

CAIRN STUCK IN A TRIANGLE

Cairn India is forming a triangle with breakout points at 315 and 280. Although there could be quite some time before we see a clear breakout on it but worth keeping a tab on this stock as pattern suggests sooner or later the stock will get out of the contraction.

SHORT TERM CALL BUY ASIAN PAINTS

BUY ASIAN PAINTS FOR SHORT TERM BETWEEN 420- 400  TWO PREVIOUS BREAK OUT LEVELS STOCK MAY FIND GOOD SUPPORT THERE SL EXIT IF IT CLOSES BELOW 380 FOR 2 CONSECUTIVE DAYS

BHARAT FORGE : LOOK PROMISING

Disclosure : Missed out on recommending  it last week ard 188-85 , although it was on my watchlist :-(

 

ANOTHER STOCK ON A FREE FALL : HANUNG TOYS

Have you seen Hanung Toys Chart recently? The stock is in free fall mode.


Here’s the Hanung Toys Chart

 
Hanung Toys was trading at Rs. 165 at start of CY2013 and yesterday it closed at 26 i.e. a fall of 83%. In Nov 2010, stock was trading at Rs. 400. That’s the level of wealth destruction that has happened on the stock. The company is now worth just Rs. 70 crores market cap.
What happened?
There are only two things I noticed:
1. Hanung Toys & Textiles has initiated discussions with its lenders to restructure its debts through Corporate Debt Restructuring (CDR) Mechanism and accordingly have filled a Flash Report with CDR Cell, Mumbai, on July 30, 2013.
2. IDBI seems to be selling the shares.
The stock has been a falling knife and one can only feel sorry for the investors. The stock also tells you a story on what kind of market we are in and No Low is good enough.

NIFTY HAMMERED BY FIIS

Nifty has been on free fall mode since July 24th. From levels of 6077, Nifty has come down to 5519.

Here’s the Nifty Chart: The fall has been one way

 The Reason: FIIs are shorting Index futures pretty aggressively

 Figures in Rs. Millions)

 As you can see in the table above: FIIs have been quite relentless and aggressive in piling up shorts in last 15 days. It would be interesting to see when FIIs decide to cover these shorts because only that action may bring in some relief. Right now market appears to be going just one way.

. Here's what Nifty futures did today

Nifty Stages a  minor pullback from near 5500 levels