How to trade in a Bear or Bull Market

1. First we should see the index how it is behaving that is when it is making an intermediate high than we should see where it is taking its first major support at this point we should buy shares of a particular company that is most liquid stock of the Market.

2. Suppose the price of a compay's share at its recent peak is $100 than Buy its share a $62 from the fund you got. Note invest only 25% of your fund at a time and wait for some time where the market is going if the market rises than book profit when the price reaches at $80.

2. Suppose the market falls again and the share price reaches at $50 than again Buy shares of the same company with 25% of the remaining fund. Then see how the market is behaving and book profits accordingly.

3. Never invest all your money at a time.

4, In this way you should make you major buying or selling decision and book Profits.

By this technic you will always earn profit and will never loose money.

Sensex shrugs off GDP blues, gains 516 pts

BENCHMARK indices surged over 3% on Friday as bulls chose to look at the brighter side of a slowing economy. According to a government release, India’s GDP grew 7.9% in the June quarter, the slowest in three-and-a-half years, and much below the 8.8% growth rate clocked in the April quarter. This, and the slight drop in inflation to 12.4%, has raised hopes that RBI may not have to raise interest rates soon. Still, brokers feel it is too early to say if the market is now poised for a s u s t a i n e d u p s w i n g . The FM himself said no conclusion can be drawn from one week’s inflation numbers. Despite the 500-plus point rally in the Sensex, traded turnover on both exchanges combined was under Rs 60,000 crore, indicating the cautious mood among investors. “I don’t think inflation is fully behind us; the market is likely to trade in a 2000-point range on either sides for some time,” says BSE broker Ramesh S Damani. The Sensex gained 516.19 points to end the day at 14,564.53 while the broader 50-share Nifty gained 146 points to close at 4,360.

Nifty Resistance @ 4350

The market has opened on a positive note and follow-up
buying was also witnessed. The Nifty on the daily chart is
trading in a range of 4450 and 4200, which are crucial
levels. We expect the momentum to be positive and
volatility on intraday basis. Market breadth is positive with
936 advances and 195 declines. Daily momentum indicator
has given a negative crossover and is trading above the
zero line. On the daily charts, support at 4200 and strong
resistance at 4450 are indicated.
On the hourly charts, a triangle has formed and has also
broken on the down side, with a support at 4200 and
resistance at 4350. The momentum indicator has given a
negative crossover and is trading below the zero line. Strong
support at 4280 and a very strong resistance at 4331 are
indicated on the hourly charts.

Axis Bank has gained momentum and is likely to test Rs750
on the upside. Infosys seems to be having support around
Rs1,695 and on the upside is likely to test Rs1,850. Banking
sector has gained momentum and is expected to move
upward.

Sensex sheds 248 pts ahead of GDP numbers

EQUITIES continued their slide on Thursday, even as inflation data released post market hours could spell some relief for bulls on Friday. Benchmark indices hit a one month lows, with the 30-share Sensex coming precariously close to breaching the psychological 14,000 mark. Inflation for the week ended August 16 slipped to 12.4%, down from 12.63% the week before. However, market watchers feel a sustained recovery is unlikely till the time there is a significant improvement in the macroeconomic picture. The government will announce the preliminary GDP growth numbers for the first quarter of the current fiscal year on Friday. Brokers said a possible decline in the first quarter GDP growth weighed on market sentiment, prompting buyers to take a cautious view. The 30-share Sensex shed 248.45 points to close at 14,048.34, after having touched an intraday low of 14,002.43. The broader S&P CNX Nifty ended the day at 4,214, down 78 points over the previous close. The BSE Mid and Small cap indices too, ended in the red, shedding over 1% each. On the global front, crude oil prices continued to firm up for the fourth consecutive day, nearly nudging the $120 per barrel mark on speculation that tropical storm Gustav will be the most damaging since Hurricane Katrina. Analysts expect the Nifty to trade with a negative bias ahead near term. “There is huge selling pressure on the index heavyweights,” said Gurudatta Dhanokar, technical analyst, Almonds Global. “We expect Nifty to find resistance at 4,080-4,100 level next week,” he added. For the second consecutive session, all the sectoral indices on the BSE ended down with BSE Capital Goods and Oil and Gas Index losing over 2%. Hindalco shares ended 12% down as the stock price adjusted for the rights issue. Other blue chips like Reliance Industries, Reliance Infra, Bhel, TCS, L&T, ICICI Bank, Wipro, Reliance Petroleum, and DLF fell over 2-3%. There were nearly two declines for every one stock that gained. Lack of a clear trend in world markets also added to the weak trend. US stocks climbed for a third day on Wednesday, led by financial and technology companies, after the economy grew more than estimated in the second quarter. Robust exports and a smaller decline in inventories helped the US economy to grow at a 3.3 % annual rate in the second quarter, according to reports. However, markets across the Asia-Pacific region finished mixed. Hong Kong's Hang Seng index plunged 2.3% and South Korea’s Kospi Composite index declined 1.3%, while Japan’s Nikkei 225 index inched up 0.1% and China’s Shanghai Composite index rose 0.3%. Traded turnover on both exchanges combined was higher than usual at Rs 83,297 crore. However, this was due to the expiry of derivative contracts for the August series.

Market Volatile

The market has opened on a flat note but the Nifty has
witnessed selling pressure at higher levels. The Nifty on
the daily chart is trading in a range of 4450 and 4250,
which are crucial levels. We expect the momentum to be
negative and volatility on intraday basis. Market breadth
is negative with 423 advances and 703 declines. Daily
momentum indicator has given a negative crossover and
is trading above the zero line. On the daily charts, support
at 4235 and strong resistance at 4435 are indicated.
On hourly charts, a triangle has formed and has also broken
on the down side, with a support at 4235 and resistance
at 4400. The momentum indicator has given a negative
crossover and is trading below the zero line. Strong support
at 4235 and a very strong resistance at 4325 are indicated
on the hourly charts.


Century Textile has gained momentum and is likely to test
Rs400 on the downside. Infosys seems to be having support
around Rs1,695 and on the upside is likely to test Rs1,850.
Banking sector has gained momentum and is expected to
move downward.

Nifty Expiry time

The market has opened on a negative note. The Nifty on
the daily chart is trading in a range of 4450 and 4250,
which are crucial levels. We expect the momentum to be
positive and volatility on intraday basis. Market breadth
is positive with 581 advances and 535 declines. Daily
momentum indicator has given a negative crossover and
is trading above the zero line. On the daily charts, support
at 4235 and strong resistance at 4435 are indicated.
On the hourly charts, an inverted head & shoulder pattern
has formed with a support at 4248 and resistance at 4400.
The momentum indicator has given a positive crossover
and is trading above the zero line. Strong support at 4275
and a very strong resistance at 4331 are indicated on the
hourly charts.


Tata Steel has gained momentum and is likely to test Rs650
on the upside. Infosys seems to be having support around
Rs1,695 and on the upside is likely to test Rs1,850. Metal
sector has gained momentum and is expected to move
upward.

Gold gets its bounce back on global cues

Taking a cue from global markets, gold prices bounced back in local markets on Wednesday as surging crude prices boosted the yellow metal’s appeal as an inflation hedge. The sliding dollar also boosted buying sentiment to some extent. In Mumbai, prices of standard and pure gold shot up by Rs 200 and Rs 205 to Rs 11,895 and Rs 11,970 per 10 gm, respectively. While in Delhi the yellow metal breached the Rs 12-k-mark to close at Rs 12,030 per 10 gm, it rose by Rs 195 at Rs 12,135 per 10 gm in Kolkata. Chennai markets saw a gain of Rs 70 as the metal closed at Rs 11,955 per 10 gm. In London, spot gold rose to $828.35/829.55 an ounce from $822.90/824.30 in New York on Tuesday.