We said of a selling pressure at the stiff resistance zones and the markets reacted as expected.
However any dip been a buying opportunity , the indices managed to recover in the late hours , but the stocks looked exhausted and tired, amidst such volatility again sectoral preference was seen in sugar stocks at lower levels.
Technically the trend is still up and strong but against a strong resistance zone , so volatility and choppiness is likely to be order in coming sessions.
Structurally the indices have managed to stay above the crucial levels of 4900 on nifty which now stands as a very strong support and cushion for any downfalls and must be used a stoploss for all longs.
On the upside our logical targets of 5150- 5200 got achieved and this is technically a selling pressure zone , which the markets needs to sustain for a further move.
So one must be cautious at this levels and be quick as volatility will be on high.
From a trading point of view , I would look at intraday dips to go long and trail 4900 as a stoploss for all longs and lighten positions near the pressure point of 5150- 5200 and again buy above 5205 levels after a buying breakout signal emerges.
Amidst this huge volatility huge opportunity lies in stock specific , where one must concentrate and must refrain from indices trading where not much gain is expected.
The supports for the nifty is at 5050 levels and resistance at 5175 levels.
The supports for the sensex is at 17010 levels and resistance at 17500 levels.
Stocks to watch
Century textiles , gitanjali gems , gmr infra looks good
Yesterday’s calls sent via sms and messenger
Jackpot Gmr infra – buy at cmp x sl x targets x – holding
Wednesday’s Dii Andhra bank – booked full profits at 108 , long from 105.50
Fii Sesa goa – buy at cmp 339 sl x targets x – 3 days (booked full profits at 345 the same day)
Dii Essar oil – buy at cmp 163.40 sl x targets x – 3 days (booked full profits at 167.50 the same day)
Punter Century textiles – buy at cmp 500 sl x targets x – holding
Jackpot Gitanjali gems – buy at cmp x sl x targets x – holding
Sail 190 ca – buy at cmp 3.60 sl 3 targets 5.50 , went 4.70
Nifty – buy at cmp 5120 sl 5102 targets 5150 , hit sl
Tisco – buy at cmp 581 sl 577 targets 590 , went 584.70
Sail – buy at cmp 185 sl 183.50 targets 190 , went 187.50
