The Nifty will consolidate for some time before an up move will commence in the market. If 5177 level is broken conclusively, the index could head to 4900-4500 levels. The fall may keep on going due to Standard & Poor’s cutting the long-term US credit rating by one notch to AA-plus from toptier AAA. S&P’s downgrade of the US credit rating will have a short-term impact on the Indian market, and global uncertainties may drag the Bombay Stock Exchange (BSE) benchmark Sensex and National stock Exchange (NSE) benchmark Nifty by another 5-7 per cent in the short term. Thus as a strategy one should go long in market only once Nifty starts moving above the level of 5501 and commodity market will see gold hitting new heights as gold rises whenever uncertainty and worries increases world wide as people flock to safer pastures.
Markets are in a downtrend and there will be selling at higher levels. Nifty has confirmed the weekly downward momentum on monthly charts. Market breadth was negative 2,365 stocks declined for 556 advancing stocks on the BSE. However not to worry as a technical bounce back is in offing as Stochastic Slow has turned bullish on daily charts and thus we may see it showing a dead cat bounce back to fill the downward gap created today and thus a move of Nifty to 5320 levels is possible. Thus trade with hot stock of the day by having prior information as it happens to be the multibagger of the day and our subscribers mint money in that as they get this tip before the commencement of the market and general public comes to know about this share later on by following the business channels.
Derivative Data Analysis
The volume-based recovery has set the stage for a modest rally into 5,300 next week, however if the level of 5000 is breached than we may see a fall to the levels of 4850. We may see a dead cat bounce back in shorter time frame and thus we may see August futures settling near 5,300 levels on the next trading day as rule of gap down says that gap will be filled. However all eyes will be on global market which will determine the trend and thus keep an eye on the level of 5089 for the signal for any further selling to commence.
Global markets Update
Investor sentiment has also been hit by a lack of clear political leadership in both Europe and Washington, and concern that governments and central banks are running out of fiscal and monetary ammunition to deal with the crises. However FIIS are still positive on India among the BRICs markets and they have faith in Reserve bank of India hawkish policies to tame inflation. Gradually, people will start differentiating between Indian market and other markets, where growth has become a big concern. FIIs knows that over an extended period of 12 months or so, India will outperform global markets and this panic right now, provides them a good opportunity to accumulate quality stocks at throw away prices.
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Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5089 | 5312-5400-5460 |
| Sensex | 17000 | 17642-18000-18140 |
Jackpot Tip Profit
| Stock | Profit (Rs) |
| Tip | 1420 (Rs 50,000 Trading) |
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Intraday Trading Tips
| Share | Gains (Rs) |
| Tips | 23860 |
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| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 43880 |
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Strong future shares at National stock exchange
Idea, Petronet, Chambal Fert, BPCL, Hexaware, Hind Petro, GSPL, Tata Global, Oil & Bata India.
Weak future stocks at NSE
KS Oils, OnMobile, IVRCL Infra, Orchid Chem, HDIL, GTL Infra, Educomp, BGR Energy, Jindal SWHL & JP Associate.
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