Sun-pharma- One week back i have indicated that sun pharma is on the verge of a break of 15 years trend line and now it seems to have decisively broken the same. As the trend line is for very long term we can expect a bigger correction which has not be anticipated. Another point to be noted is that at the top the pattern formation is also bearish. it seems to be clearly forming H&S pattern over last one year and is on verge of breaking the neck line. The neck line is around 800 levels, so if 800 is breached decisively then H&S pattern implication give a target of around 450 levels will it go there only market would tell. It seems that the long term uptrend seems to be over in sun pharma and it is not going to be a bull market in it.

Mahiidar M

Enjoying Life

Trend is Friend.

Bank Nifty, also seems to be in similar pattern and we seems to have started the down move which is going to be very violent. In coming weeks it seems to be heading downwards and bears are going to rule this index also. It has chances of going to 14000 levels which happens to be nearly 3000 points from current levels.

Mahiidar M
Enjoying Life
Trend is Friend.

Nifty is forming a very bearish pattern and it is clearly indicating that in coming weeks we might be in for a very bearish move. Nifty seems to be forming an expanding triangle and we seems to have completed the wave-4 and we have just started the wave-5, and generally it is the one which is most violent and also most destructive. Now we have to see the volumes and the volumes would be very high during the formation of the move and it would be most destructive of all the waves both time wise and also price wise. if the formation is correct then the fifth wave would all the way go and move beyond the 1-3 trend line i a big way so we can easily see it below 7000 levels and towards the 200 week EMA which happens to be at 6700 levels. Will it go there the pattern implication are pointing towards that. This pattern nearly similar to the pattern formed in Jan to Sep 2008, and we know the effect of the same. This would i would try to explain in the coming week. So the pattern is indicating that the bears are going to rule the market in coming weeks or months.

Mahiidar M

Enjoying Life

Trend is Friend.

CNX mid cap index is finding it difficult to move above its 2008 high of 6050. it has tried three times during last one year and all the times it has failed to make a new high this indicates that till decisive new high is made mid cap index will not go any where. Only one concern here is during the consolidation generally volumes would be less and on break out the volumes increases. But in this case the volumes are high during consolidation which is rare. So we have to see how it behaves but any breach of 5000 would spell doom for bulls and we can expect healthy correction in the index and also underlying stocks.So bulls have to wait for some time to dominate.

Mahiidar M

Enjoying Life

Trend is Friend.

CNX-100 is forming lower highs and lower lows after 2012 on wards. This index has fomed lower lows only once but has not formed lower highs. So after long time this pattern has been formed which is clearly indicating that the index has become week and we can expect larger correction in coming weeks unless and other wise higher highs and higher lows are formed so till then bears are having upper hand.

Mahiidar M

Enjoying Life

Trend is Friend.

Indusind bank is in a continues uptrend from last six years i has moved from around 30 levels to current levels of around Rs.950/-. it is struggling to move and close above 950 levels it has made three attempts and in each attempts it has failed to move above it. The each rise post first correction was on high volumes but the those volumes failed to take it to new high which is a clear indication that the stock is in top formation and it would not move up in a hurry. it seems to have clearly formed a triple top show by three arrows. So indus ind bank is not a buy as of now we, it appears that it might end up on moving down. Any breach of 800 would confirm it and then it has all chances of moving towards 500, till then we have to keep a close watch bulls be carefull.
Mahiidar M
Enjoying Life
Trend is Friend.

TCS, seems to be stuck between a range of 2800 to 2400 from last one year onwards. This is clear indication that TCS is a stock not to be entered into within the range. only long to be take when the weekly close above 2800, and any breach of 2400 would trigger bears and the stock can fall below 2000 levels easily. But one thing to be noted is that during the side ways market during last one year the volumes have not decreased and in fact they are slightly heavy indicating that some amount of churning is happening but long consolidation is some concern for bears. So as of not TCS is a stock to be watched rather than invest.

Mahiidar M
Enjoying Life
Trend is Friend.