More consolidation..less rally (SOURCE :state of the market)

That’s the new mantra of the market. It runs for couple of days and rests for twice that duration. It gives mixed signals during consolidation and runs again. That’s the market for you - extremely rewarding for traders who have lots of patience and probably nightmare for in-and-out traders.

1. In any contest between power and patience, bet on patience - W.B. Prescott.
2. The biggest enemy of patience is Anxiety. Traders want to take profits immediately because of fear of losing them. Traders also don’t want to be seen complacent.
3. Bearish Talk: There is just an amazing level of complacency in this market right now and nothing seems to bothers it. The buyers just keep in coming and buying every small dip.
4. There is no worry. VIX trading at historically low levels. Yesterday, India VIX closed at 17.87. In August 2009 - VIX used to trade around 40 levels.
5. US CBoE VIX is trading at 16.62 - 2 year lows. Bearish traders are calling this a dangerous complacency; whereas bulls calling this a great sign for smooth ride ahead.
6. Nifty Month to Date now is up 6.5% whereas BSE mid-cap index is up 5.6%. Large caps leading the performance chart
7. FIIs are in aggressive buy mode. Yesterday, they net bought 484 crores worth of stocks in cash market. DIIs continue to sell or stay on sidelines.
8. Nifty has once again become range bound in 30-40 points just below 52 week high of 5310.
9. The two large cap names responsible for strength in last few days and weeks: Reliance and ICICI Bank. Reliance is trading above 1040; and ICICI Bank trading at 52 week high.
10. There are stocks making 52 week highs and sustaining strength at that level. The only difference: there is an upside move but without momentum
11. Yesterday, Hindalco and JSW Steel made fresh 52 week high
12. Maruti post budget euphoria has pulled back near 200 dma of 1398. Yesterday, the stock closed at 1421 - will it get institutional support?
13. Despite market trading near 52 week high - two stocks look disappointing and lacluster on charts - i. SBI; and ii. ONGC
14. Two stocks with momentum undertone - Bombay Dyeing and Havells India.
15. Marico: There has been huge build up in volumes over last one week. Yesterday, the stock closed at 52 week high. Technically, the set up points to more upside if stock strengthens above 110.
16. GreenPly: Price Volume breakout. If stock sustains above 199 - expect sharp upside move in the stock
17. Trading interest in Textile and apparel companies: keep an eye on Raymond. The chart looks bullish
18. Is Life coming back in dead IPO names. Yesterday, Adani Power closed at 114 - highest level. Pipavav Shipyard showing life around 60. JSW Energy trying hard to cross over 112
19. Overnight, US market rallied for 8th straight day. The market is looking overextended and most of the rally has come on lower volumes.
20. Low volume isn’t anything to worry about – it’s not a sign of caution – it just tells you participation is low and hopefully there is lots of money waiting on the sidelines.
21. There is very thin line between wishful thinking and objective analysis.