As said and expected the indices remained side ways , choppy and hugely volatile with some stock specific movements.
Technically the picture remains the same and the markets are likely to remain volatile.
However the pattern of the markets suggests a side ways consolidation and then a spurt , we witnessed a sideways movement yesterday with a positive bias and the indices holding on to crucial levels.
So as long as crucial levels of 16050 on sensex front and 4750 on nifty front are held , the markets looks up , and the strategy remains to buy on dips and trial all longs with a stoploss of the mentioned crucial levels.
On the upside the indices will continue to face stiff resistance around 16500 levels on sensex and 4900 on nifty , where some intermediate reactions cannot be ruled out.
A successful and sustained trading above these levels can take the indices into a stretched territory of 17500- 700 levels , which becomes the next logical targets on sensex front , whereas 5300 for nifty front.
However this rising wedge can also prove to be a false breakout to trap new longs and fresh positions , who have a left out feeling and buy due to sheer frustration.
So one needs to be a little cautious and watchful in the vicinity of 16500 and 4900 zones.
Structurally the indices and the markets donot indicate any weakness , though the environment and the mood turns optimistic and all people , media , papers turn hugely bullish with extra big targets on Indian markets , which makes me fearful and cautious – just as a step of precaution.
It doesnot necessarily mean that we are headed for a big correction or down move , and I believe opportunities do not knock daily and we are unlikely to see 2008 like correction any soon and new highs , be it 21000 or 23000 will come more faster than people and masses think and believe and all will be astonished .
I have already said earlier in august 2008 that “ Mother of all bull market is yet to come “ and India and Chinese economy will outperform , now this has become the tag line for all.
Indian markets I believe will not peak before 25x pe forward 2011 earnings and it may move to 30x pe with eps of 1000+ and PE of 25 , in anycase a PE above 20-22 is considered dangerous and calls for a crash.
Anyhow there will be many rags which will become tenbaggers and multibaggers in just few months and success lies in grabbing opportunities and not thinking…
The supports for the nifty is at 4750 levels and resistance at 4910 levels.
The supports for the sensex is at 16010 levels and resistance at 16500 levels.
Stocks to watch
Aarti drugs , jindal saw , micro looks good
Yesterday’s calls sent via sms and messenger
Jackpot Moserbaer – buy at cmp 91 sl x targets x – holding
Fii Titan – buy at cmp 1293 sl x targets x – 3 days (booked full profits at 1310 the same day)
Tisco – buy at cmp 458 sl 454 targets 466 , went 465.35
Reliance 2100 ca – buy at cmp 53 sl 48 targets 68 , went 102
Unitech – buy at cmp 113.90 sl 112.70 targets 117 , went 115.25
Dii Sesa goa – buy at cmp 225 sl x targets x – holding
Hindalco – buy at cmp 116.50 sl 115 targets 119 , went 119.65
Nifty – buy at cmp 4802 sl 4779 targets 4840 , went 4845
Nifty 4800 ce – buy at cmp 114 sl 105 targets 135 , went 141
