S&P CNX Nifty - Still Bearish - Dewang K Mehta

Dear All,

This week the S&P CNX Nifty closed at 5482 which according to the charts is a very crucial level for it. A close below 5480 will definitely see us testing the 5200ish zone on the Nifty which takes it lower by at least another 3%.

What we have done is to go back to the basics of technical analysis which talks about supports and resistances. We have highlighted the resistances in red color from where the Nifty has fallen every time and the supports in black which are the zones where Nifty witnesses buying and bounces back.

So according to our reading of the charts we are very crucially poised and if you play by the book then it’s prudent to buy the Nifty at 5480+ levels and keep a stop loss of 5446 both being spot figures. However for traders who love going short we would advocate a weekly close below 5450 to go ahead and short the Nifty.

We began July with the Nifty at 5700+ when we had emailed and blogged about being cautiously bearish and we still continue to hold a bearish view on the market. However we are not ruling out a ultra quick up move to 5650 if buying does come in.

Our previous posts on the Nifty:

1. April 2011 - http://denipconsultants.blogspot.com/2011/04/nifty-view-denip-consultants-dewang-k.html
2. June 2011 - http://denipconsultants.blogspot.com/2011/06/nifty-view-denip-consultants-dewang-k.html
3. July 2011 - http://denipconsultants.blogspot.com/2011/07/s-cnx-nifty-cautiously-bearish-dewang-k.html

Clearly the above posts show how we have been bearish on the Nifty since 5900 and continue to maintain our view.

Thanks,

Dewang K Mehta

DENIP Consultants

Disclaimer Post Applies

DENIP CONSULTANTS Receives immense appreciation for NCFM CORPORATE Training

Dear All,

DENIP Investment Academy a part of DENIP Consultants Pvt. Ltd. was involved in a small project for corporate training. The project involved training the jobbers/arbitragers of Genuine Stock Brokers Pvt. Ltd. (http://www.genuinestockbrokers.com/) and help them clear their NCFM Certification.

The training was conducted at the premise of Genuine stock brokers post 3:30pm once the jobbers were done with the normal market. One of the main objectives of DENIP was to ensure that the sessions were fun and interactive since the students would have just completed a long day at work.

After rigorous training of 5 days, the students were ready for the NCFM exams. However in order to minimize the risk, DENIP ensured that the students were well prepared for the same and did that via Mock tests. Each of these tests involved 50 questions relating to the chapters of NCFM Capital Markets (Dealers Module)

DENIP took the feedback after all the sessions and mocks tests only to find that the participants were highly contended with the quality of training provided and appreciated our efforts in plenty.

We look forward to conduct similar sessions with the enthusiastic participants at Genuine Stock Brokers & would like to thank all the trainees for being co operative and hard working. It was a perfect blend of the right attitude and immense effort which allowed our endeavor to be a a grand success.

Thanks and Regards,

Dewang K. Mehta
DENIP Consultants Private Limited

Awaken The Winner In You - June 13th 2010 - Hotel Mirage (Andheri (E))