Short covering seen world over.

The Democratic and Republican leaders of the Senate announced Sunday night that they had reached a deal to raise the nation’s debt ceiling and avert a default. A short covering rally might flare up in the world stock markets worldwide.

S&P CNX Nifty for the week 1st August 2011 to 5 th August 2011.

The overall trend for the short term is bearish. If the 5438 support is breached on closing basis with good volumes, a short term severe sell off may ensue and buying for long term in key heavyweights is suggested only once the momentum on the downside subsides. Market will be strong only if it starts trading above the 5610 mark conclusively.

Thank you United States of America for spelling global doom!!

Billions of dollars blown into bailing out the top Banks of US and the country’s gross domestic product, grew at a meagre annual rate of 1.3 percent in the second quarter, after having grown at an annual rate of 0.4 percent in the first quarter between January and June. To make matters worse, total loss of economic output in the 2007-2009 recession was revised to 5.1% from a previous estimate of 4.1%. The data comes at a time when the White House and Congress are locked in a battle over how to raise the debt ceiling to allow the government to borrow more money. If they cannot agree, the government will soon run out of money, leaving it unable to pay items such as social security payments, military pay and interest payments.
So much for all the quantitative easing and so much for not taking over the banks, cleaning them and handing over back to the market force
...and third world is busy fighting inflation!!! Raising rates killing domestic businesses dependent on domestic consumption- thanks to unaccountability of US government to the globalization and to the globe.

S&P CNX Nifty for the week 25 July 2011 to 29 July 2011.

If the benchmark index trades above 5650 mark with convincing volumes and for longer time, it can go upto 5730 mark. However the volumes have died down and moreover the July settlement is on 28th. So caution is advised with a stop loss around 5570 levels. The support at 5400 must hold for the week.

S&P CNX Nifty for the week 18 July 2011 to 22 July 2011.

For the next week if the benchmark index breaches the 5555 mark on the downside, a short term bearish trend will follow, whereas if it manages to hold above the 5648 mark with good volumes on a closing basis, a fresh upside will be seen. Chances of a short term upside cannot be ruled out in the immediate term if the Nifty trades above the 5595 mark in the opening few hours of trade next week.

Nifty 11th July to 15th July 2011

Last week the S&P CNX Nifty closed at the critical level of 5660.65 which technically indicates a 50-50 chance of breaking even or breaking down. The uptrend will resume if the index manages to stay conclusively above the 5742 mark with good volumes. On the downside, if it breaches the 5540 mark a short term bearish trend will resume. Caution is advised at this stage.

Nifty 4th July to 8th July 2011

As long as the Nifty holds above the 5590 mark, it is believed to climb northwards steadily with bouts of profit booking. If it crosses the 5743 mark conclusively with good volumes a new 52 week high cannot be ruled out, although 5775 will act as a strong resistance. However, in the worst case scenario 5472 should act as a strong support. The dips may be utilized to accumulate key index stocks for a short term.