4400 is a resistance for Nifty; Reliance is strong!

Nifty is inching up slowly every 15min, this is all due to reliance, since reliance has a strong effect on Nifty. Nifty has to cross 4400 and remain above it for a few minutes to resume upward journey. Since today is the expiry day we should expect some small range movement as traders switch over to the sept futures.

I expect Nifty to touch 4500 today itself! Read more.

Dow jones rallied more than 250 points yesterday which will be a positive effect on our indices and we should see Nifty touching 4500 today itself, although 4400 is a strong resistance, but we might see a gap up opening today and touching 4500 will be pretty easy for nifty and sensex should open with a minimum 300 points up gap.
Tatasteel is looking good for buying, one can buy tatasteel is it moves above 666, for a target of 675, for the second target, if it crosses 678, then next target will be 695, a good jump is possible in tatasteel.
Centurytextile has made a 52-week high and i expect it touch touch 830-840 in coming days.Buying can be initiated in Centurytextile if it crosses 800 for a target of Rs825-830.

Expect a heavy correction today in Nifty!

Dow closed with -275 points last night and nikkei futures were around 15824, which means roughly 400 points fall since afternoon. I expect Sensex to correct today with atleast 400-500 points fall correction and a 100 point fall in Nifty straight away in first 10min-15min of opening trade in Nifty itself.
Nifty below 4190 will touch 4135, and below 4130 i expect it to touch 4100, 4100 is a good support which i dont expect to be broken, but since the pressure in fall can be huge, no wonder!
Goodbye Bulls!

Market is poised for a good upside,Nifty can touch 4300!

Dow jones made a remarkable recovery last friday 24th Aug 2007. This will bring an automatic effect on our markets and I expect Nifty to touch 4300 in a short time. The stocks to invest or buy for going long are SBI,Reliance, Tatasteel above 590 my target is 602 in intraday itself,its good for short term, infact TATASTEEL is expected to cross 602 mark as well, and if it does it then next target for me will be 618, this is possible on the same day, but it all depends on the volume of the stock.
Another stock which i would like to trade will be OMAXE,which if crosses 334, my target will be 350 in day or two.
DLF has a resistance at 573 above which I expect it touch 584 the same day, provided it moves with good volumes.

Technical analysis and trading for Indian stock market

Technical analysis is a vast subject and people(traders,investors,amateurs) are slowly realising this science as a gateway to successful intra-day trading and yes, long term investing, using some technical analysis software and trying to figure out what is expected the next day on the basis of stock filtration technique using some in built parameters in the software.
One such software is Metquotes, which can be downloaded from http://www.metquotes.com and is developed by myself in vbasic .net, this software uses my scanning methods and generates reports on the basis of the filtration methods using the End of Day stock quotes which are also downloaded by this software from http://www.nseindia.com
This software does scanning only on EOD(End of day) data, it does'nt provide real time data, now you will ask a question that why is this software based on EOD instead of real time data? the answer is, its not required at all.
Many traders these days are buying real time feeds from vendors on the websites and paying them nearly 3000-5000 monthly only for the real time feeds, which are mostly compatible with METASTOCK PROFESSIONAL, an Equis product, available at http://www.equis.com
What I tell to my clients...is that you don't need real time feeds from these vendors, instead choose a good broker which can provide real time quotes in a trading terminal which can be very economical and you have to pay only one time fee, Rs200 or Rs500, thats it!
The trading terminals have real time quotes and the stock graphs can be seen in those terminals, the prices of stocks change every other second in that terminal.
I have used all trading terminals, the best currently which is available is Angel Anywhere, from angel broking, www.angeltrade.com
Their software is pretty good designed for professional technical analysts. You can see at a time 6-10 graphs easily on the terminal, plot all types of indicators on the graphs and you can have bar and candle graphs. I normally use candlesticks for analysis so by default when I login into Angel Anywhere software, all the settings are loaded, which obviously I saved from last login.
My trading method for intra-day is, by scanning EOD data from METQUOTES, i choose the best stocks on the basis of volume and price breakout, then I do analysis of charts of the chosen stocks in METASTOCK PROFESSIONAL, and calculate the resistance and support levels.
The next day I track the same stocks and take buy/short sell positions in those stocks.
This looks pretty easy but requires lot of hard work, the phrase EASY MONEY, doesn't exist in the technical analysis field.
The main system which reduces my technical analysis time is METQUOTES, since it scans the break out stocks, and filters the laggards.
Metquotes is at http://www.metquotes.com
Data downloaded by metquotes is compatible with Amibroker software, available at http://www.amibroker.com

Expect Nifty support at 4000.

The previous support of 4000 could be tested today in Nifty spot.Below 4000 things will look ugly. On the upside Nifty has a resistance at 4100, above which it can touch 4150.Most stocks/bluechips corrected with good volumes,weakness will prevail in the market, bounce back is expected and highly anticipitated currently.

How to trade in Forex from India?

The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you see how giant the Foreign Exchange really is. In fact it is three times larger than all of the US Equity and Treasury markets combined.
What is traded on the Foreign Exchange? The answer is money. Forex trading is where the currency of one nation is traded for that of another. Therefore,Forex trading is always traded in pairs. The most commonly traded currency pairs are traded against the US Dollar (USD). They are called ‘the Majors'. The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF).The notable ‘commodity’ currency pairs that trade are the Canadian Dollar (USD/CAD) and the Australian Dollar AUD/USD. Because there is not a central exchange for the Forex market, these pairs and their crosses are traded over the telephone and online through a global network of banks, multinationalcorporations, importers and exporters, brokers and currency traders.Traditionally, currency trading has been a 'professionals only' market available exclusively to banks and large institutions, however, because of the rise of the new E-economy, online Forex trading firms are now able to offer trading accounts to 'retail' traders like you and I. Now almost anyone with a computerand an Internet connection can trade currencies just like the world's largest banks do. There are now over 6 million trading accounts worldwide up from 1.7 million in 1997.
BENEFITS OF FOREX TRADINGThere are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market as a business opportunity:
1.LEVERAGE: In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Some Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies.Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.
2.LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid.This means that with a click of a mouse you can instantaneously buy and sell at will. You are never 'stuck' in a trade. You can even set the online trading platform to automatically close your position at your desired profit level (limit order), and/or close a trade if a trade is going against you (stop order).
3.PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stock markets, you can only make money if shares are rising, but in economic recession and falling 'bear' markets, there is little chance of making big money.Forex is different. One of the most exciting advantages of FX trading is the ability to generate profits whether a currency pair is 'up' or 'down'. A trader can profit by taking a 'long' position, (buying the currency pair at one price and selling itlater at a higher price), or a 'short' position, (selling the currency pair and buyingit back at a lower price). For example, if you think the US dollar will increase in value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If you think the Yen will increase in value against the Dollar then you will sell Dollars and buy yen (go short). As long as the trader picks the right direction, a potential for profit always exists.
4. 24HRS: From Sunday evening to Friday Afternoon EST the Forex market never sleeps. This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.
5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online Forex firms offer free 'Demo' accounts to practice trading, along with breaking Forex news and charting services. These are very valuable resources for traderswho would like to hone their trading skills with 'virtual' money before opening a live trading account.
6.'MINI' TRADING: One might think that getting started as a currency trader would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer 'mini' trading accounts with a minimum account deposit of only $200-$500 with no commission trading. This makes Forex much more accessible to the average individual, without large, start-up capital.

Expect a rebound in Indian markets on monday!

Here comes the good news, Dow jones roughly 150 points up right now and this means if it closes in +ve and that too in good shape, then a minimum 50-100 points gap up opening on monday in Nifty is very much possible and in Sensex a 300 points upside gap opening is possible as well.
We might see a good rebound on monday and those who were strong enough to take long positions today in Nifty will be rewarded on Monday with a positive opening.
4200 is expected to be a resistance, and i Expect Nifty to cross it if Dow closes in the green, and not to mention the Nikkei and Hang Seng which should also open in +ve on monday, as our indices rely on Asian indices as well.

Nifty below 4100, expect more weakness!

Nifty has just fallen below its good support at 4100 which indicates further weakness in the index. The next support for it is now 4000 and only 4000 can save this market, below this small supports exist at 3950-3980.
This fall is being fuelled by other Asian indices, like Nikkei and Hangseng.
Bulls are advised to go to sleep!

How did the correction started? What is subprime loan?

Many traders all over the worl might be asking this question to themselves about how this mess started and why all of a sudden such a huge correction occurred in US and world markets, the reason is over confidence and poor understanding of credit markets among US hedge funds, Banks and even credit rating companies like S&P and MOODY's.
A senior executive of a credit rating company in US in 2006 looked at the 6lac plus loans given in that year and saw that around more than 50% loans given not even a single person gave its first installment, this was a big jolt to the rating company and they decided to downgrade their ratings from tiple AAA to double BB which means not suitable for retail investing or long term investing.
This downgradation led to panic among traders and made a selloff this year.
Many other reasons were behind this.In 2006 falling interest rates and rising housing rates led to over confidence among big money lenders and they started giving loans to people with bad credit ratings and even to those who didnt had any documents, showing the over confidence among the banks and private lenders that the subprime borrowers will payback the principle amount within the time duration, which didnt happened,forget about principle amount, most of them didnt even pay their first installment.
This was the starting of a big fall in the worlds strongest economy called USA.
Soon a fall in housing rates happened which led to big panic among home owners and for those especially who have taken loans to invest in new housing areas,these people decided to backoff from paying off their debts and which led to liquidity crunch among banks and private lenders, and eventually led to filing of bankruptcy.
The situation can even go worse as the rumour of US's big mortgage company Countrywide might file for bankruptcy, if confirmed.

God save USA and the World markets.

Expect further correction in Indian markets

Currently when this post is being written the DOW jones is down by 140 points, it was around 300 points down a few hours back, it has recovered a lot nearly 50% from its current day fall, but this doesnt mean that weakness is over.Weakness is still there and I expect further correction in DOW JONES which will lead to a correction in Indian markets as well.
I expect sensex to touch around 13700 level, from where some bounceback or recovery is expected.
The correction in DOW Jones was mainly due to subprime market in US where the borrowers became defaulters and this led to a heavy sell off in NYSE leading to liquidity crunch and many leading funds declaring bankruptcy in US.