Negative cues and news flood market...June 12, 2008

The US markets tanked again sending a bad cue to all markets world over yet again. So we begin the day where there is a sea of red across the world already. To top it, RBI has hiked the repo rate. So, we have a lot of negatives for the market and hardly any positives. The only positive is on the technical front. NIFTY has formed a morning start candlestick pattern which is a bullish reversal pattern when it occurs in prolonged downtrends like the one we are in now. Yesterday's rally could not break through the resistance at 4530-4540. If we break 4370 on the downside and also close below 4400 we will see 4200 next in the coming days. Given the conditions, we can also expect a bounce from lower levels when markets get oversold for short rallies. Its going to be an exciting day ahead. Lets just hope it doesn't turn out to be a black thursday.

Today rate sensitive sectors like banking stocks and real estate could take a real beating. I am giving some important levels for some stocks, trade accordingly.

ICICI BANK - CMP 741.2 IMPORTANT SUPPORTS/RESISTANCES - 719, 673, 662, 645, 634
SBI - CMP 1314 IMPORTANT SUPPORTS/RESISTANCES - 1285, 1271, 1254, 1228, 1208

Watch IFCI, something brewing in this counter. Stock is slowly moving up against the market. Some accumulation is happening. One of these days, this could explode up. Above 65 this stock is a very strong BUY.

Infosys call given yesterday hasnt hit our stoploss yet. Below 1890, 1860 is a strong support. Once broken it should head to 1800 straight. This is also showing small reversal signs on charts. So lets be cautious and trade as per levels.