morning thoughts..
As said and expected the markets remained highly volatile and choppy and saw a two side movement with the broader markets in a consolidation mode.
Now we enter into the f/o expiry week , which calls for more volatility and fluctuations.
Technically the trend of the market has not been compromised yet and the indices have managed to stay above our crucial support zones.
So structurally it must be assumed that the trend of the market is still intact up as long as our crucial levels are held.
On the lower side 4900 is a major support on nifty front and also a stoploss for all longs , below which the indices can slip to 4750 odd levels.
Further more the immediate support levels for the nifty stands at 4975 levels on nifty front and 16650 on sensex front which should provide cushions to intraday falls and volatility.
On the upside resistance remains at 5200 levels and 17500 levels , which is a short term supply zone for the indices.
The f/o expiry week could incur a short squeeze and short covering in later sessions , so one must be cautious and refrain from huge shorting and must still adopt a buy on dips strategy and trail it with a stoploss of the crucial levels mentioned.
However one must also keep booking profits at higher resistance zones .
Structurally the markets looks like in a sideways move with consolidation and volatilty in coming sessions with a probable short squeeze and short covering.
From a trading point of view , i would watch my crucial levels and keep booking profits at higher levels and buy at support zones mentioned and trial it with my stoploss.
Astrologically mercury transits its position after 6 months and saturn enters virgo after replanatory leo after long time – which indicates volatility and deceptive moves in coming sessions.
As the indices continue to trade in a range with less oppurtunity in indices trading , one must concentrate on selective stock specific activities where gains are likely to be more and major.
The supports for the nifty is at 4950 levels and resistance at 5075 levels .
The supports for the sensex is at 16650 levels and resistance at 17200 levels.
Stocks to watch
Hindzinc , rolta , kirloskar oil looks good.
Friday’s calls sent via sms and messenger
Unitech – sell at cmp 102 sl 103.50 targets 97 , went 97.85
Tisco – sell at cmp 552 sl 556 targets 544 , went 526.70
Bharti airtel 340 ca – buy at cmp 8.80 sl 8 targets 11 , went 10
Hindalco 140 ca – buy at cmp 3.80 sl 3 targets 5.50 , went 5.20
Nifty – buy at cmp 5044 sl 5029 targets 5080 , hit sl
Jackpot Idfc – buy at cmp 157 sl x targets x – 3 days (booked full profits at 161.65 the same day)
Fii Mphasis bfl – buy at cmp 669 sl x targets x – 3 days (booked full profits at 677 the same day)
Dii Rolta – buy at cmp 192.25 sl x targets x – 3 days (booked full profits at 196 the same day)
Punter Hindustan zinc – buy at cmp 902.50 sl x targets x – 3 days (booked full profits at 947 the same day)
