morning thoughts..

We were continuously telling of the high resistance , overbought , overstretched zones , and a reaction looks viable.
The markets behaved as expected and obliged.
As said to be cautious from a trading point of view , as the markets were ripe for a reaction and we used the opportunity to short nifty at 3050 and bought some nifty 3000 puts , just a matter of the survival of the fittest.
Technically the charts indicate some more selling pressure and the indices can see some more downsides.
However the indices have strong supports at 9500 levels on the sensex front , which will provide good supports to the markets.
A breach and break of these levels will fuel a quick fall to fill the gap at 9250 levels.
So 9500 holds the key and needs to be watched closely
Structurally the markets looks volatile and looks poised to give volatile moves , it gives a sense that not much downsides are expected , though 9500 needs to be watched carefully.
The supports for the nifty is at 2875 levels and resistance at 3050 levels
The supports for the sensex is at 9500 levels and resistance at 9990 levels


Stocks to watch

Fertilizer stocks , nagarjuna , nfl , chambal looks good at dips



Yesterday’s calls sent via sms and messenger

Nifty – sell at cmp 3050 sl 3067 targets 3020 , went 2980

Rajesh exports – buy at cmp 25.20 sl 24.50 targets 27 , went 26.80

Sesa goa – buy at cmp 102.85 sl 101 targets 106 , went 106.45

Nifty 3000 pe – buy at cmp 110 sl 101 targets 130 , went 138

Renuka sugars 90 ca – buy at cmp 6.20 sl 5.50 targets 8 , hit sl

Fii Rajesh exports – buy at cmp 24.25 sl 22 targets 28 ( buy given on Wednesday , booked full profits at 26.40)