MY VIEW

Deflation is now a big issue. As analyst said that for coming months the inflation will be in negative which in turn will affect the corporate results for the next quarter. This is bad for market. Less money chases few goods is called deflation. In deflation the commodity prices will come down gradually so we get a product cheap in future than it costs today. Naturally we will wait for a cheap price to buy that product so consumption is stopped and demand comes down. As demand drops production falls consequently it contains further investment and growth is affected. It also raise unemployment problem.

I learned that monsoon may not beat the expectation but I not sure about that. These problems will have an impact in the budget and market is expecting more in the budget and to my mind I feel there may be some disappointment for the investors. May be these issue had an impact in the market for past two days I feel so. Last week I expected that market will touch 4100 levels and another rally will start but not happened. Nifty broke important support 4214 and immediately bounced to 4300 levels which are not healthy. Once it broke this level it should have touched 4116 level but not happened to my mind this shows that the downtrend will continue.

MARKET VIEW FOR NEXT WEEK [22/06/09 – 26/06/09]

Based on the above factors I feel come week nifty will near 3600 levels. Already there is gap in the chart which I thought it would be filled after budget but in prevailing situation I feel it would happen come week itself. Technically in the price chart too I could not see a strong bullish pattern may be Monday we may see some up move that too depends on global cues. In addition heavy weights scrip’s too are not strong.Only if nifty crosses 4484 with a increased volume we may see up move. If I am correct come week nifty downtrend will continue and only in the 3600 levels investing in the market will be worth I feel so.
Let’s watch what happens next week.

NIFTY LEVELS FOR NEXT WEEK [22/06/09 -26/06/09]

SUP:4214, 3593. RES: 4484.

FREE TIPS

Only if market moves downwards trade this scrips.

TTML

Technically in the price chart a bearish pattern is formed so we can sell this scrip for a target 28.90. I feel even if market moves upwards we can sell this scrip.

SUP: 33.10, 31.70. RES: 37.30.

RELCAPITAL

Technically in the price chart I feel the down trend may continue so we can sell this scrip at 883 levels for a target of 747 and below.

SUP: 854, 747 . RES: 930 STOP LOSS 930

RELINFRA

I had given this call on Friday it achieved first support.Still I feel we can sell this stock far a target of 1123 levels.Sell this scrip below 1243 levels

SUP: 1243, 1226 . RES: 1272 STOP LOSS: 1272

RELIANCE

Technically in the price chart a bearish pattern is formed so we can sell this scrip for a target of 1908 and below.Sell below 2025.

SUP: 2025, 1977. RES: 2051 STOP LOSS: 2051

TATASTEL

Technically in the price chart a bearish pattern is formed so we can sell this stock below 405 levels

SUP: 405, 384. RES: 417 STOP LOSS:417

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