morning thoughts..

The markets opens after a long weekend and again heads into a truncated week of trading.
Technically the markets trend hasn’t been compromised yet nor any big reversal on charts is visible.
However the short truncated week will keep the markets highly volatile and choppy.
Last session we had witnessed certain stocks giving a higher opening – bull gap opening on charts and later giving off all the gains to fill the gap.
So one must be cautious in buying in such scrips and gaps or else one can get trapped very easily, neither do such scrips gets warranted for a short sell , they are far better left alone.
From a trading point of view , I would like to buy dips and adopt that strategy until 16390 holds on sensex front.
Structurally the indices has given a sell signal , but that could be due to long weekend and short trading week.
So I would watch the crucial levels of 16390 on sensex front and buy dips , until this levels hold and would trail it as a stoploss for all longs.
If the indices manages to hold this levels and we see a sustained trading above this levels for few sessions , then we could see targets of 17300 on sensex. and 5150 on nifty
The supports for the nifty is at 4920 levels and resistance at 5025 levels.
The supports for the sensex is at 16390 levels and resistance at 16900 levels.


Stocks to watch

Dr reddy , nfl , madhucon projects, chambal fertilizers looks good


Friday's calls sent via sms and messenger

Jackpot Dhanlakshmi bank – buy at cmp 167 sl x targets x – 3 days (booked full profits at 175 the same day)

Nifty 5000 ce – buy at cmp 129 sl 121 targets 150 , went 146.90

Mcleod russel – buy at cmp 226 sl 223 targets 232 , went 234

Ibrealest – buy at cmp 266.50 sl 263 targets 272 , went 275

Nifty – buy at cmp 4965 sl 4949 targets 5000 , went 5007.55

Gail – buy at cmp 359 sl 356 targets 367 , hit sl

Tisco 510 ca – buy at cmp 26 sl 24 targets 31 , went 28.50

Dlf 430 ca – buy at cmp 23.50 sl 21 targets 28 , went 27.50