Treasure Map on World Markets

Hello Pirates

There is a big question in everyone mind that what is happening to the world markets, even at our markets, we have seen a continuous rally from 4550 levels to at most 5080 levels as on date, many stocks have rallied in the market, if we look from the past records when nifty was at 4500 levels, all the sectors slowly slowly pumped up the index & then settled down.

Ya this is true, if we see the IT sector it boomed first gave a boost to the markets & markets jumped to 4600 or so levels, then Realty Sector boomed & we saw a boom in the market till 4800 levels, then the banking sector boomed again a pump for in the index & again new highs till 4900 mark, then all of a sudden without any intimations the Pharma sector also boomed, the stocks which were at its lows, never moved from its lows, no one expecting them to move, all said to sell & book profits a per they are bad stocks, it suddenly boomed & nifty being range bound from 4930 - 5011 levels, this pharma sector rally gave a boost to the market to a new high upto 5080 levels as on date.

But the key behind this is, as the sectors are booming our markets are boosting & no healthy correction has been taken place in between, a newtons low is being applied, where we just see upside as per there is no bad atmosphere & thus no cracks, but one think, very important to see which we would like to bring to notice is that Nifty has made new highs, but the stocks which had participated in the rally, read my words, the stocks such as Reliance Industries, State Bank of India, DLF, Unitech, Jp Associates, IFCI, Suzlon & many more, which are a part of the nifty index also, they are not able to make new highs as the markets are making new pecks.

What does this mean, that we have to hunt down a sector which has not rallied yet, which would boost up the index to new highs, as per the stocks which are a major part of the market are exhausted & they can't move much, they can just help or give a hand to boom the rally but can't boost up the rally, this is a big question in my mind????

Now which is one sector which has not boomed yet, which is that stock which is yet to be fired up, which will be the golden gem which is trading at its lows & ready to be fired, this is a hunt, so we have to hunt to gather & try not to miss the golden chance, but.................................

Another big question in my mind which is, as per the stocks which have participated in the market are not able to make new highs, what if we find some golden gems which are yet to be fired up, but what will happen when all the stocks are fired up, which would be the sector which will pump up the market from here, which would be that stocks left in the list to boom the market, can any one tell me that????

We feel no one can, all are expecting a bull run & new highs, but how will this bull run continue when all the stocks are empty & no new highs being created, a much bigger question then the early one.

We here will not predict any thing, but do take care, at these levels, no healthy correction has been taken place & there are many unfinished business left behind which have to be covered up before heading to a bull run, yup the bull run would come but pendings should be filled to have a bull run.

World markets are with us but key points to note as on date : -

Dow Jones had made a new high for the year 2009, it had touched 9900 mark, but the SNP500 had a ghost at 1080 levels & under gone a correction of 400 points atleast, now do keep eyes on 10000 mark & SNP500 at 1080 levels, it has support at 9650 levels & breaking that would lead to 9550 levels also, which are a key to its support breaking the SNP500 below 1040 would be worse for the markets, so keep eyes on SNP500 above 1080 mark or below 1040 mark will decide the trend for the market. If SNP500 brakes 1050 levels can tank upto 1020 levels & even 1000 levels are expected then in the coming future.

Shanghai is one of the markets which had boomed before the other markets could boom, so its trading ahead of us & below all support levels, the levels it has support at are 2880 & from there it can touch 2980 levels also which would be the highs for the market in the year, they are trading at its lows, so they are not participating in the rally as other markets are doing.

Nikkie has broken its major support level of 10260 & trading below the levels, we expect it to touch 10560 levels, but the index has broken all supports so, this index has to take supports at 10264 mark & 10380 to make to the target, as of now the index is moving side ways, this is also not participating in the rally.

Hang Sang has just broken its major key support level and trading at the last support levels, the key support level was 21260 & has taken support at 20560, breaching this levels may tank the market to lower levels & we can also expect it to touch 19800 levels when the supports are broken, on the other hand if the support are taken then we can expect it to touch 21700 levels also, but for that the index has to take supports & participate in the rally.

These are the major indexes which we track upon & they are our personal views, one may take the above information for educational purpose.

Regards

Captain