Technical on Bank Nifty and Tata Motors

By | August 8, 2011 10:11 pm

Bank Nifty

Bank Nifty has crashed 12.2% from top of 11887 and 9% from recent high of 11451 which has been horrendous fall, The Silver Lining in this Global Crash is fall in Crude Price which will help in improving in Current Account Deficit for Indian Government and in turn will help in easing inflation also.

As per me Investor should start buying Blue chips (Infosys,Tata Motors etc..)in Phased manner as valuation are quiet compelling No one can buy at Bottom and sell at Top, So start taking exposure to equities.

Bank Nifty has been harbinger for Nifty. Banks have held our market from falling a panicky fall.

Bank Nifty has not broken the Feb lows 10017,while Nifty has broken its Feb lows and make a new low of 5054. Bank Nifty is know to lead Nifty because 26% of Nifty composition is made of financials.

RSI is quiet Oversold and another day of fall will bring us to panicky technical in 2008 Crash.

Buy at 10262 Tgt 10306,10354,10392 and 10451 SL 10017

Sell below 10017 Tgt 9940,9864 and 9737

 

TATA Motors

TATA Motors is near its long tern trendline at 823 levels. Stock has witnessed a fall because of its global exposure in Europe.

Stock breaking 823 can see another shave off of rs 50 points from it. Technically looks week and oversold on charts.

Relief rally is offing and will be fast on furious so please trade as per levels and with strict sl

Sell below 823 Tgt 812,793 and 763

Buy above 842 Tgt 860,872 and 890

2 thoughts on “Technical on Bank Nifty and Tata Motors

  1. Joy Ghosh

    I think it makes sense to wait before buying (except option) as this fall is not of the same kind of last 3-4 falls during last 1 years. This market even may fall after 1-2 days of relief rally making it a classic trap. Nobody knows which hedge fund/other risk takers are “near collapse” and hence in desperate mode to raise cash silently. Cheers.

    Reply

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