The Nifty remained in a tight raage the whole day, and there were traces of profit booking with sudden downward spikes, which were promptly arrested with fresh buying signals. High volatility was witnessed during the latter part of the trading session as key benchmarks reversed direction and moved into the positive terrain. As per provisional figures the S&P BSE Sensex was up 35.63 points to 20282.96. The CNX Nifty was down 14.05 points to 6183.95 as per provisional figures. The market breadth was negative. On BSE 1245 shares declined and 1112 shares rose.
Reliance Industries, which has been doing well this week, fell 0.68% to Rs 834.40. ITC fell 0.62% to Rs 334.70. Power equipment makers rallied across the board. ABB jumped massive 21% on large volumens. Crompton Greaves L&T Bhel and Siemens advanced 2.34% to 9.69% Auto stocks were mixed. Tata Motors rose 0.05%. Maruti Suzuki India fell 1% to Rs 1709.40. M&M rose 0.03% to Rs 985.50. Two wheeler markers were mixed. Bajaj Auto rose 1.44%. Hero MotoCorp dropped 0.56%. Motherson Sumi Systems lost 4.11%. Continue reading
Note to Investors: The few cheerful days of December seem to have erased the pain of November. December has historically been a positive month, and maybe this year 2011 sticks to the trend. However, there are no guarantees for 2012. If the S&P 500 index goes down from here, due to various negative news in the new year 2012 from within the USA and from the global economy, then the major supports are at the following levels: 1110 and 1000. Investors can buy at these levels, and sell with 10-15% gain on recovery rallies.
Below 1000 level, the only trade will be on the short side. Investors also should wait for S&P to come above 1000 before making major investments. Below 1000, there is 50% probability of retesting 666 – the low made on March 06, 2011.
If things become positive globally by end of 2012 (looks unlikely, but still possible) — with EU solving their problems in a neat way, the US fiscal deficit reducing along with reducing unemployment in USA and Europe, investors exiting gold and moving into real estate, etc — then S&P 500 can move up to our upside target of 1666.
There is something special about 666. It appears in both the downside and upside targets! It will be very difficult to pick the sectors that will take the lead. Therefore, consider using the S&P500 Index ETF (symbol: SPY) to move through the volatile times ahead in 2012.
Posted in Stock Investments, Stock Market News, Stock Trading, Stocks To Buy
Tagged DJIA, Dow Jones Index, Emini Futures Trading, Index ETF, jobless claims data USA, S&P 500, S&P Emini Futures, SPY, US stock market
India’s GDP for Q2 FY12 grew at 6.9% (Bloomberg estimate: 6.8%). Core sector growth for the month of October dropped to a six year low of 0.1%. The core sector has expanded 7.2% last year (October 2010).
India’s food inflation for the week ended November 19 declined to 8%on a week-on-week basis from 9.01% for the week ended November 12 while fuel price index increased to 15.53% (15.49% last week).
Indian Prime Minister Manmohan Singh failed to break an impasse with opposition parties and his own allies demanding a rollback on FDI hike in retail sector. And as of today, this new policy has been put on hold to get agreement from opposing political parties. Continue reading