Nifty Inverted Head and Shoulder pattern - Kedar K Murdeshwar

20th Sept,2011

Nifty is on the verge of completing the Inverted Head & shoulder Pattern.Now we have to just wait to see whether Nifti will give a close above the Neckline in order to confirm the Inverted Head & Shoulder Pattern.

See the Nifty Chart below as on today at 3.15 pm

Pharma stocks Overview:Some pills are sweet,others Bitter - Kedar K Murdeshwar

20thSept,2011

PHARMA Industry (overview) (Updated at 10.15 am)

Biocon:At the Current level of 336 looks good.It has crossed the previous days DOJI high.One should maintain a buy above the level of 334.This Stock van move upwards and hit a target of 350 in the coming days.But one should immidiatel exit or reverse the position if this stock gives a close below 330.

Cipla:the movement looks good but may face ressistance at 288.If it crosses 288,its next target is 310.At the current price of 280 one can expect the stock to move up.Cipla can be worst if it close below 274.be cautious at this level.

Divi's labs:No comments

Glaxo:Too Volatile with less volume.

Glenmark Pharma:This stock looks good if gives a close above 330 this week.The target is 340 for the coming days.But still i amnot so positive on this stock as of now.

Lupin:Dont enter now.

Ranbaxy:Ranbacy looks Bearish.477 is the major support.Any close below this level will pull down this stock.A close above 492 can take the stock to reach the level of 520.

SunPharma:My view is Bearish on this stock.

Nifty Outlook - By Kedar K Murdeshwar

Date:19th Sept,2011

Nifty (Intraday Close:5032.80)- Nifty was down -1.01% or 51 points down as expected.Nifty may move down further before getting a cushion and support at 4985.If during the trading hours Nifty comfortably takes support from here,it can bounce back.So please watch this level of 4985 tommorow.

But Friends if any selling pressur forces Nifty to breach down this level os 4985,one could see Nifty touching the levels of 4932 and 4893 in the coming 2 days.

However,as I had predicted in my earlier Blof Nifty is just lying marginally above its support of 5030.Any upward push by this crucial Intraday support level may push Nifty up to the level of 5076 or maximum 5090.(not More than That)

It has to be noted that the Volumes were less today.

Axis Bank Looks Bearish For Tommorow at the cmp of 1099.

Buy LIC Housing Finance if its above the level of 216.75.This stock can hit the target of 223 in coming days.

Be Cautious about Maruti.It has near about formed a double top.May face ressistanmce at 1149 and come down.

Mundra Port looks good for Buying at the cmp of 153.50.Target for Tommorow 156 and 158

Asahi India looks agood at Current level of 71.3.This scrip can hit a target of 76 in the coming 2 days.

Buy Bajaj Finance if its above 638.Tommorow's target is 645.

for further details mail me on kd_analyst@rediffmail.com

Currency Outlook - Kedar K Murdeshwar

Date:19thSept,2011

The weekly chart of Dollar in terms of Indian rupees show that the Rupee might depriciate more.It may reach to a level of 49.58 in the near future.From here I think that Ruppe may appreciate.(Good news for Crude Importers.And hope they roll back the petrol prices!!)

If my analysis is right (as always!!),I expect the Rupee to appreciate more and touch the level of 46 very soon.(and please dont try to link my relations with RBI governer now!!)Its purely based on Technical Analysis.

euro: Euro is appreciating against Rupee.It may face a stiff ressistance at 68.64.

For Further Details mail me at kd_analyst@rediffmail.com

Evening Star:Kedar K Murdeshwar

Date:19th Sept,2011

EVENING STAR

Evening Star is three candle Bearish pattern.A formation of this pattern at the top is an indication ,that the market may move down.Its a rare pattern.

The Formation:After a Huge Green (bullish) candle is formed,the next day market opens up with a gap and again closes up with a green candle.On the 3rd day however,if the market opens down with a gap and ends as a red candle,the complete formation is called Evening Star.

On the fourth day, one can expect the market to go in a bearish mode for 1-2 weeks if the fourth day opens down.

In the given below chart of AXIS bank.one can notice an evening Star pattern formed in the last week of july and 1st week of August 2011.

For more details mail me on kd_analyst@rediffmail.com

INVERTED HEAD & SHOULDERS - BY KEDAR K MURDESHWAR

Date:19th September 2011

INVERTED HEAD & SHOULDERS

Inverted Head&Shoulders is a Bullish pattern and the Price can give a major upward Breakout if it crosses the Neckline.The Breakout would be much better if it's with huge volumes.

In a Downfall,the Index tries to bounce back but rises up to a certain level with lesser volumes and comes down to make a lower bottom than the previous one.

Now after making this new bottom the Index again rises with huge volumes indicating buying presure.It reaches upto a Certain level and again starts falling down but this time with less volumes indicating selling pressure drying up.This down fall make a new bottom but but higher than the earlier bottom.

Now if the Index rises again from the higher bottom and crosses the neckline drawn joining the 1st leg of the head and the 2nd leg of the head it will definitely go for an upward breakout.

A Breakout above 5150 in the current scenario can push the Nifty to achive a target of 5650 in the near future.The level of 5329 can play a big hurdle in achiving the upper traget of 5650.

As of now The Nifty is down as I had predicted earlier.

The Invereted Head & Shoulders can be seen from the above figure.

For Detailed Description on Inverted Head & Shouldrs mail on kd_analyst@rediffmail.com

Commodity Overview (Gold and Silver) - Kedar K Murdeshwar

Everyone is running after Gold as its the best bet when th eequity markets are down and the best asset class that can beat inflation.

Just because Gold is going one way,its not right to say that now gold will be 50000.one needs to have a base for this.Technically speaking if one observes,Gold is moving in a flat range since last few days.As far as Gold stays above 27095 its good to be invested in gold.If the level is braeched downsde than gold can come down till the level of 25000.

Still,I maintain that the upward rally is expected and Gold can touch the levels of 29430,if it crosses 28100.This is a mediumterm view.The 7 days exponential average which was steeply moving up looks flat indicating some selling pressure.

Though on a weekly basis Gold was down -1.39% on MCX,the weekly rising bottoms in Gold show a positive sign.Again,there would be some festive season like Navratri and Diwali coming which will increase the demand for Gold on the domestic front.Again,the current shraddh period,there is no buying in gold which is hampering the demand for gold.This infact is reflected in the charts

Silver on the daily chart is in the formation of ascending Triangle and looks to move up.The friday's close of Silver on MCX was 64629.Silver has a very very STRONG ressistance at 70000.Be watchful.Silver is facing a constant ressistanec at 66064.