RELIANCE CAPITAL

From the above chart of RELIANCE CAPITAL we can clearly see that ParabolicSAR, RSI have shown SELL signs and MACD line is very close to the SIGNAL line that means MACD is also about to give a sell sign on RELIANCE CAPITAL.Weekly RSI is also in the overbought zone(67),so it is a very good SELL at this point of time. Institutional investors still haven't booked their profits in this script, when they start booking profits this script will crash like anything.
So trade that can be formed in this script is: SHORT SELL RELCAPITAL OCTOBER FUTURES@ 446 and BUY @ 430.

RELIANCE INDUSTRIES

From the above chart of RELIANCE INDUSTRIES we can see evening star candlestick formation on reliance with increase in volumes. We can also see that it has closed below its 20 day exponentional moving average(829.2) so we can expect RELIANCE to test its 50 day exponential moving average(802).
So one can SHORT SELL RELIANCE INDUSTRIES OCTOBER FUTURES @ 826 and BUY @ 815. 

INDUSIND BANK

We can clearly see from IndusInd Bank daily chart that a tri-star doji pattern is formed with a RSI of 78. My view on Nifty is slightly bearish(can correct upto 5600 levels)so i fell IndusInd Bank too can correct from these levels.                           

So in that case one can SHORT SELL INDUSINDBANK OCTOBER FUTURE @ 370 and BUY @ 362-360.

HDIL

From the above graph of HDIL we can clearly see evening star candlestick pattern and bearish engulfing pattern are formed with a RSI of 74.So in that case one can short HDIL OCTOBER FUTURES @ 105.5 and buy back @ 100.

WALL STREET VIEWS

Source:Reuters

Wall Street may be bracing for a pullback as US earnings season begins next week - if the clouds of profit warnings from bellwethers ranging from FedEx to Hewlett-Packard lead to a downpour of lower profits - or even losses.


Thanks to aggressive stimulus plans from central banks around the world, the Standard & Poor's 500 index gained 5.8 percent over the third quarter. That sharp rally occurred even as companies were struggling. Earnings for that period are forecast to fall 2.4 percent from the year-ago quarter. If that happens, this would be the first earnings decline in three years, according to Thomson Reuters data.

Market strategists and investors say US stock valuations are broadly out of sync with earnings estimates. They forecast a pullback in stocks in the coming weeks as more companies report results and reduce expectations for the fourth quarter and beyond.

Fourth-quarter estimates for S&P 500 companies show a 9.5 percent gain in profit from a year ago, according to Thomson Reuters data. Analysts say that outlook is too high, given what investors are already hearing from the corporate world.

"It's a divergence right now where the valuations as far as equity prices (are concerned) have soared, and are really putting in place a stronger economy and stronger fundamentals," said Alan Lancz, president of Alan B. Lancz & Associates Inc., an investment advisory firm in Toledo, Ohio.

"But earnings will be the telltale sign," Lancz added. "And if the guidance isn't particularly strong, the market might be setting itself up for a little disappointment. I don't see a major correction, but I do see a pullback."

The earnings season will kick off on Tuesday with results from Dow component Alcoa


TECH FEELS CHILL FROM CHINA


While estimates have come down sharply in all 10 S&P 500 sectors since the start of the year, technology is one area where the lower expectations are most notable. Slower growth in China is a big factor in that trend.


Earnings growth in the tech sector is expected to be just 2.3 percent for the quarter, compared with a July 1 forecast of 13.1 percent.
                                                                                      
                                                          

SBI

One can see from the above chart that State Bank of India is in an overbought zone with RSI of 79.ParabolicSAR is also giving a sell sign on SBI.On the last trading day we were able to see an increase in volume too.
In that case one can SHORT SELL SBI OCTOBER 2400 CALL @ Rs41 AND BUY BACK @Rs 30.

NIFTY VIEW

As per Nifty weekly and daily charts we can clearly see nifty is in an overbought zone.Closely looking at daily chart we can see technical indicators like RSI, Parabolic SAR and Candlesticks(Bearish Engulfing with increase in volumes) giving a sell sign and while looking at the weekly chart Bollinger Bands(very close to the upper tip of the Bollinger Band),ParabolicSAR,RSI are giving sell signs.
So i expect Nifty to correct a bit,in that case one can SHORT SELL NIFTY OCTOBER 5700 STRIKE CALL @ Rs120 AND BUY BACK @Rs100.One can also SHORT SELL NIFTY NOVEMBER 5800 STRIKE CALL @ Rs 140 AND BUY BACK @ Rs.120.