We saw how the markets reacted to all the news flow and on last Friday the markets closed down by 550 points. So a lot depends on the news and economic development world over. So I present here some of the current market trend and investing strategies from medium term and long term perspective.

For some time the markets are moving either way and same was the scenario last week too. Sensex lost 0.55% intra week and nifty lost 0.18% intra week. Some of the major gainers included heavy weight stocks like SBI, ONGC, ACC, TCS, Tata Power, RIL, BPCL etc. Some other movers included HPCL, Aban Offshore, UCO bank, Mosear Bear, Everonn systems. Some of the stocks were also called here for intraday trading.


Intra Day Trading and Intermediate Trend For Coming days:

The markets are in a intermediate uptrend currently which was triggered last week on Monday. Markets touched an intermediate low of 14,002 on Aug 28th and the markets bounced back since then. The current intermediate uptrend would end if the markets fall below the intermediate lows of 14,002 and a similar level for nifty is 4,202 levels. In other words they are now acting as support levels for the sensex and nifty.

Traders need to be cautious of the global developments a lot. The world markets are in a intermediate downtrend currently. Dow hit the mark last Thursday when Job loss data came and it touched the lows of 11,200 levels. Now, 11,000 levels is a big support for the Dow. And if Dow falls below this level we can see a blood bath in the streets again anytime. Crucial levels to be watched are 11,750 levels in Dow. If this level is achieved and sustained then Dow and world markets would enter into a intermediate uptrend. Hang Seng touched one year lows last week and is trading week currently.

So if the markets hit the lows again then the best advice to intraday traders would be to go short at those levels and make a comeback again at the support level prices. The NSG deal which was cleared last week due to which many restrictions on India were removed. This came as a big boost to the markets and they are zooming today with gains of almost 560 points. Stocks to watch out for would be L&T, BHEL specifically as they might get good orders now.

Long Term Investment Strategies:

The markets are now having higher intermediate bottoms but lower intermediate tops. Long term perspective will be good if the markets closes above its last intermediate top of around 15,580 levels. We can see a good come back rally after that. Do remember to book profits at higher levels. The equivalent levels in nifty would be 4,650. Indian markets were able to sustain good levels in the last 2-3 months as against the global peers. It sustained the last intermediate lows of 12,514 levels. So thats a pretty good sign for long term investors.

Some concerns would be as always the inflation figures, crude oil prices and certain developments at the center. The Singur issue is almost solved with some announcement expected very soon on that matter. Now as said watch out for levels like 11,200 in Dow and Hang Seng should also make a comeback as it has touched yearly lows now. Another space to watch for would be the IT stocks as the dollar has touched 44.60 levels already against Indian currency. The IT stocks could be a safe bet for coming days along with other exporters.

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