First lets check the accuracy of 22^nd July, 2013. Blog (write up )

In that blog I categorically mentioned that market is forming Top between 23^rd to 25^th July. Be alert, Start selling book profit. And exactly on 23^rd July 2013 Market formed Top on N.S.E 6,100 and on B.S.E. 20,351. And fall started.

Now lets take a call for this week (29^th July to 2^nd August 2013.)

At present market is oversold on very short term basis. Nifty take support around 5,850 to 5,900 and bounce up to5,980 to 6,000. Max.6,050.

Keeping 6,100 as strict stoploss. This is the Best short selling opportunity. Down targets are 5,850-5,800 and logical Target 5,750 on B.S.E. around 19,000. This fall will be over by 5^thAugust 2013. Again Imp. Fibonacci Time Cycle Date.( Imp. Turning date)

Here another possibility is:- In coming week Market is holding 5,850 and will witness  slow and sluggish up move then 5^th August onwards fall may start.( on 30^th July R.B.I.policy (event base situation) may face lots of Volatility)

Word of Caution:- In any given circumstances if Nifty stays below 5,750 & On B.S.E. below 19,000 for 15 working days then Market is  heading for big trouble ( Panic fall) down targets are 5,550 to 5,350 to 5,400.( on B.S.E. 17,500 to 18,000)

To Sum up :-  This is  an event based Week So, Watch the weak bounce On Nifty up to 5980 to 6000.max 6050 where ever market is forming double top, Triple top (on above said levels ) and sluggish movement indicating  best Short selling opportunity keeping 6,100. as Strict Stop Loss.

Economic reason for this panic falls.

1)      Dollar-Rupee equation. Dollar may rally up to 63.

2)      Crude oil rise up to 120 Dollar per barrel. ( At present 107 break out level above 109). These two reasons lead to higher Inflation and widen Current Account Deficit gap (Now It’s 4% and on Monthly basis its 12 billion Dollar a Month)

3)      CRISIL Report about Companies not able to serve there debts/ loan obligations (default on Interest) leads to N.P.A. for banks indicating Gloomy Economic & Industrial Environment. Be Alert &Trade Safe.

Economic Education Financial Awareness is Main Goal of this Blog

Disclaimers:-This Market view is given for M.B.A.Finance Students. Any Market buying or selling is done on basis of this write up and if there is any loss. Neither this Blog (write up) nor Ashish Thakur is held responsible for same. Pl. Note.