Maruti in free fall!

Maruti Suzuki has fallen after its quarterly results to 1180 which is an important support area. In my earlier post on Jan 06, 2010 (http://terran23.blogspot.com/2010/01/maruti-in-reverse-gear.html) I had mentioned that the stock will decline to 1360. The stock then went on to form the death cross (50 dma goes below 200 dma) and then attempted to climb over 200 dma which is at 1420 levels. The stock has seen a steep sell off and can fall to 1100 or below. In fact if the overall market declines we will see triple digit levels in the stock.

SBI at significant resistance levels!

State Bank of India (SBI) is facing severe resistance at 2150. For the past three trading sessions the stock has taken support at 2080 levels. If the stock fails to clear 2150 and closes below 2070 then the stock can fall to 2020 levels. This will also violate the recent uptrend (Line A) and the scrip may fall to newer 52 week lows as the overal medium term trend is down as visible from the downward sloping channel. 1880 and 1680 are major supports in a big correction in the stock.

VIX at historical lows!

VIX for the Indian mkts are at historical lows. In fact the current reading is lower than the reading for Jan 2008 all time highs. This shows a lot of complacency in the markets and is a cause for concern for the bulls.

Nifty on the edge of a precipice

Nifty is on the edge of a deep decline. The support of 4950 has held today and the index better hold on to this level. As the graph shows the support line for this rally has broken and a fall below 4960 will take the index to 4780 and then 4550.

Maruti in reverse gear

Maruti Suzuki India is at a very critical support zone around 1500. Big volume dumping of the stock has taken it below the 50 dma. If the scrip cannot climb back above 1540 then lower levels are sure to be tested. Major support is available at 1360.

Nifty Correction continues

I had mentioned in my previous update that Nifty Index had breached the uptrend support line and is due for a correction. The index is in free fall and has taken support in the 4680 - 4720 region. A bounce can take place here as the index is oversold in the short term. Markets are not seeing short covering also and hence corrections to the fall are intraday and infrequent. A major correction can take the index down to the levels show in the chart.

Breach!!

The support line for the bull run in Nifty was finally breached today. Bears got their act together and pushed the index down relentlessly in a trending day. Bulls will try to support the index in the 4880-4920 region. A close below that will signal that the Bears have got the trend in their favor and mkts may see significant correction.