PRE-OPEN MARKET OUTLOOK(01-06-2009)

PRE-OPEN MARKET OUTLOOK(01-06-2009)-(PART-1)
MARCH 2009 RALLY IS ONE OF THE STRONGEST 1ST BULLISH(IMPLUSIVE) WAVE OF INDIAN STOCK MARKET HISTORY. THE FORCE OF 1ST WAVE SIGNIFIES THE STRENGTH OF WHOLE BULLISH MOVE. IT IS THE NATURE OF THIS RALLY THAT IN ALMOST 2000 POINTS RUN IT HAD SHORT TERM OR VERY SHORT TERM CORRECTIONS. AFTER WATCHING SUCH STRONG 1ST WAVE I AM NON STOP TELLING OF INDICES MOVING ABOVE ALL TIME HIGH BUT IN FACT I AM EXPECTING SENSEX ABOVE 30,000 AND NIFTY ABOVE 9000 IN THE COMING YEARS. WHILE PREDICTING SUCH A BULLISH MOVE I WOULD LIKE TO ADD THAT ALL THE FINANCIAL MARKETS DISCOUNTS ALL THE NEWS WHICH LAYS IMPACT ON FUNDAMENTALS AND FOR TRADING AND INVESTMENTS ONE SHOULD BE AWAR OF ALL THE DEVELOPMENTS AND FAST LIKE TIGER TO TAKE DECISIONS. ALL THE POSSIBILITIES SHOULD BE KEPT IN MIND BUT IF ANY BIG NEGATIVE FUNDAMENTAL CHANGE DEVELOPS THEN TARGETS CAN ALSO BE REVIESED,REVISED AND SELLING CAN BE DONE BEFORE ACHIEVING TARGETS. INVEST TO KEEP THE TARGET IN MIND AND SELL IF ANY SUCH A BIG NEGATIVE FUNDAMENTAL DEVELOPMENT COMES WHICH DISRUPTS IN A BIG WAY ECONOMIC AND FINANCIAL FUNDAMENTALS. IF ANY SUCH SITUATION WILL COME THEN I SHALL BE FIRST TO TELL FOR SELLING AS I TOLD IN JAN 2008 AND FROM 1ST JAN 2008 I TOLD NON STOP FOR DOWN MOVE AND PREDICTED NIFTY AT 4150 WHEN NIFTY WAS ABOVE 6000. THEREFORE INVESTMENT SEASON HAS COME AND FIRST INVEST TILL THE BEGINING OF INTERMEDIATE CORRECTION. AFTER FINISHING OF INTERMEDIATE CORRECTION INVESTMENT SHOULD BE DONE FOR MORE THAN 2000 NIFTY POINTS AND MORE THAN 7000 SENSEX POINTS.

INTERMEDIATE TERM CORRECTION WILL NOT START EASILY AFTER SUCH A STRONG MOVE BUT INDIAN MARKETS WILL HAVE TO PREPARE FOR THAT AND THAT WILL ALSO TAKE ITS OWN COMPLETE TIME BEFORE ITS BEGINING. INTERMEDIATE TERM CORRECTION WILL COME AFTER COMPLETE SELLING PATTERNS IN INTRADAY,DAILY AND WEEKLY CHARTS.

5TH DOWN WAVE STARTED ON 12-08-2009 FROM 4650 NOW LAST BUT STRONG RESISTANCE BETWEEN 4500-4620. AFTER CROSSING 4620 INDIAN MARKETS WILL AGAIN ZOOM UP. AFTER STRONG GLOBAL CUES INDIAN MARKETS WILL OPEN STRONG TODAY BUT IT HAS TO WATCH HOW NIFTY REACTS ABOVE 4490 BECAUSE LAST FRIDAY NIFTY MOVED WITHIN 4440-4490 IN LAST 4 HOURS AND COULD NOT SUSTAIN AT HIGHER LEVELS AS WELL AS CLOSED AT LOWER LEVELS OF LAST 4 HOUR RANGE . IF NIFTY SUSTAINS ABOVE 4490 AFTER STRONG OPENING AND CONSOLIDATES WITHIN THE RESISTANCE RANGE OF 4500-4620 THEN +4900 LEVELS WILL BE SEEN.

POSITIVE ANNOUNCEMENTS ARE POSSIBLE FROM GOVT. THIS WEEK AND SENTIMENT IS UPBEAT AS WELL AS 2000 NIFTY POINTS RUN UP HAS BEEN SEEN THEREFORE PROFT BOOKING POSSIBILITIES ARE ALSO HIGH. FIRST CONFIRM THAT NIFTY IS SUSTAINING ABOVE 4490 THEN BUYING SHOULD BE DONE AND IF SUSTAINS ABOVE 4490 AND CROSS 4620 THEN INDIAN MARKETS WILL SHOOT UP FAST AND +4900 WILL BE SEEN.

WATCH 4450-4490 TODAY. IF SUSTAINS ABOVE 4490 AND CONSOLIDATES THEN MORE UP MOVES AND GREEN CLOSING WILL BE SEEN TODAY.IN CASE OF PROFIT BOOKING NIFTY WILL SLIP BELOW 4490 AND IF BREAK DOWN 4450 THEN SHORT TERM CORRECTION WILL BE SEEN.


(LALIT KUMAR DHINGRA)