We are in deep trouble if Nifty does not close above 5930 level as thereafter it can crash till 5500 levels. We are not immune to global actions and same has been amply proved with the news of an exchange of fire between North and South Korea which led to steep crash in all the stock markets . North Korea reportedly fired artillery shells across its western maritime border, prompting return fire from South Korea. At least four soldiers are said to have been hurt. Meanwhile, South Korea has issued its highest non-wartime alert in response. Reports indicated that today's incident is one of the most serious incidents between the two since the Korean War in the 1950s. The incident comes days after North Korea revealed it had a modern uranium enrichment plant -- potentially giving it a second route to a nuclear weapon. Nevertheless, the market staged a strong intraday rebound a steep intraday slide that pushed the key benchmark indices to two-month lows in afternoon trade. Moreover world is alos worried about on-going concern about Ireland's debt problems. The BSE 30-share Sensex fell 265.75 points or 1.33%, up 349 points from the day's low and off 150 points from the day's high.
All the sectoral indices on BSE were in the red. NSE's volatility index, India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, jumped 16.71% to 23.26. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Telecom scam may not become an Achilles' heel as Prime Minister is being asked questions by the supreme court which means that judiciary is functioning in the democratic set up, though at the end of the day it will toe the line of the party in power. However it is commendable and we are becoming a tough democracy where judiciary is supreme and world can emulate our model. Closer home, the Supreme Court began hearing on Prime Mninster Manmohan Singh's affidavit that rejects charges of inaction on the part of the PMO in the 2G spectrum scam. On Monday, 22 November 2010, Janta Party leader Subramaniam Swamy - the petitioner in the case stuck to his stand that there was delay on the part of the PMO in replying to his complaint over prosecution of former telecom minister A Raja. But he shifted the blame on law officials and bureaucrats advising the Prime Minister. Swamy filed an affidavit on Monday in response to the PM's reply which stated that no delay has been caused from the PM's office in replying to his petition seeking sanctions to start prosecution of Raja in court.
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Analysis of derivative segment data suggests that 12.30 lakh shares were added in open interest with a significant increase in the cost of carry, indicating long accumulation at lower levels. On the options front, implied volatility shot up by 400-500 basis points, indicating the market will remain volatile and it is advisable to avoid taking over leveraged positions. Be skeptical of any upmoves and view it with an eye of suspicion and trade with given support and resistances where break of 5899 will begin a new script for Indian share market.
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Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5842 | 6044-6100 |
| Sensex | 19465 | 20118-20307 |
| Stock | Profit (Rs) |
| Tip | 1455 (Rs 50,000 Trading) |
| Share | Gains (Rs) |
| Tips | 37560 |
| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 56640 |
Dish TV, S kumars, UCO Bank, Orchid Chem, Educomp, Lupin, Bajaj Auto, Hero Honda, GE Ship & Canara Bank.
Weak future stocks at Bombay Stock Exchange
OnMobile, Unitech, Orbit Corp, Jindal SWHL, FSL, Rcom, HDIL, Ispat Ind, Videocom Ind & MTNL.
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