BULLS HAVE TO CONQUER 5270 TO REGAIN CONTROL!

As expected there was a BIG BATTLE between THE BULLS & THE BEARS...The Border 5270!!

The momentum indicators are getting weak and so will the sentiment if we stay here for a few more sessions.The BEARS have reasons to short the market....Impending CRR Hike,Sensex trading at P/E multiple of 23!! Its pretty difficult to justify upside from here .....Fundamentally!

"But the markets can remain irrational more than you can remain solvent". Its A GAME OF WHO BLINKS FIRST from here.Like they say, if in a fight....Hit first and Hit Hard!! If the BULLS don't hit hard now, with every passing session they will lose confidence.

The TOP is always made by THE BULLS...and The BOTTOM is always made The BEARS. The top is a level where a bull is not comfortable holding his long position and starts taking profit. The bottom is a level where the Bears don't want to remain short and start covering shorts.

The weekly charts will be defined by todays closing. Lets wait and watch who Blinks First!

For the Immediate short term, I would be a bull if Nifty crosses 5275 and a Bear if we break 5240. The intermediate trend is intact till we stay above 5150 on the Nifty.

Regards,

Rahul T.


FOR STOCK TALK........CLICK ON THE LINK BELOW..........

HIGH RISK CALL : CENTURY TEXTILES 

THE VOLUMES HAVE BEEN STEADILY INCREASING IN THE LAST 3 SESSIONS.
THE STOCK IS ABOUT TO BREAK OUT OF THE CHANNEL.IN SUCH CASES THE HEIGHT OF THE CHANNEL BECOMES THE TARGET WHICH IN THIS CASE IS 140 ODD RS.( 440-580)
BUT TECHNICAL ANALYSIS IS AN ART OF INTERPRETING THE SCIENCE ;)


THE IMMEDIATE TARGET CAN BE 650...IT CAN TARGET 700 IF THE MARKET STAYS ABOVE 5350 NIFTY.( MORE ABOUT THIS LATER )


BUY ABOVE 590 FOR A TARGET OF 650, STOP LOSS 565.WHEN THE STOCK MOVES ABOVE 600 REVISE THE STOP LOSS TO 578.






RAYMONDS LIMITED ( FOR CASH TRADERS)


BUY WITH A STOP LOSS BELOW 220 LEVELS FOR A TARGET OF 280 IN THE NEAR TERM. THE STOCK WILL GATHER MOMENTUM ABOVE 250.




SOME FUNDAS ABOUT THE TEXTILE INDUSTRY 

Indian textile industry is the largest and most important sector in the economy in terns of output, foreign exchange and employment in India. The textile sector also has a direct link with the rural economy and performance of major fibre crops and crafts such as cotton, wool, silk, handicrafts and handlooms, which employ millions of farmers and crafts persons in rural and semi-urban areas. Industry has strong raw material base, skilled manpower and low wage costs; this pushed industry has huge potential in the globalised textile economy. 

Indian textile industry is all around Rs.90000 cr. The organised market is around 40% . The organised sectorrepresents the Spinning and composite mills which are involved in spinning, weaving and processing activities under on roof. The unorganised sector is mainly engaged in weaving . This makes them heavily dependent on the organised sector for other process requirements. Indian textile industry is supported by well established supporting industries and institutions that provide inputs and expertise to the industry in terms of design, technology engineering and machinery. Demands for Branded apparel wears is growing rapidly. There is a growing tendency towards the branded clothing segment in India which is positive for Apparel players. Even here in textile industry its more over played by the unorganised players who are able to offer clothing?s and apparels at a lower price and make there presence in the market. 

The industry is undergoing revolution, determined by a few key trends. While structure is largely of small scale unorganised player and after the removal of quotas that led to the growth of vertically integrated large-scale units as well. India thus has the potential to be a significant player not only in customised designs, but also in low cost, Mass production. Mass customisation may well be a key success factor for the companies in future. The government is proactively addressing an urgent need to eliminate the duplication in the tax on sales; free movement of goods within states will result in better retail sales. 

HAVE A GREAT TRADING DAY!

SIGNING OFF...

RAHUL T.