As said and expected the markets manage to bounce from the oversold zones and in turn trapped fresh shorts created.
Technically the bounce is purely on short covering and short squeeze and is not an indicator of an upmove.
However the broader undertone of the markets are still bullish and the ongoing correction is a part of the steep run seen in last few months.
So every dip and fall is a buying opportunity for the calm and patient and will be rewarded handsomely.
One must start accumulating low beta stocks and refrain from high beta in the current scenario, stocks must not be bought just because they have fallen much or is low priced.
Some of the sectors which looks highly overpriced and stuffy is power , which is trading at a huge premium to FY 011 earnings with high multiples and PE which is not justified as major and most of the companies in this sector has no plant setup or production against which they are eating revenue, so one must stay away from the much hyped power sector.
From a trading point of view I would like to accumulate certain cash scrips and nifty in a straddle strategy and apply a pyramid theory keeping in mind the crucial levels of supports and resistance.
On lower side major support exists at 4440 levels which is also a logical target for this downfall on nifty front , sensex should find cushion around 15050 on lower side.
On the upside nifty will continue to face resistance around 4900 zones and will require a closing above 4975 levels for a sustained upmove in coming days , sensex needs to trade above 16050 for an uptrend.
Structurally the markets need to spend some time at lower levels and consolidate before it moves up , until then any bounce would be seen with suspicion and caution and could be used for distribution and selling.
Neptune is the planet of spirit and faith. It governs our dreams and intuitions, our spirituality, imagination, delusions and addictions. This is the planet that can lead us to our higher purpose, dissolve our personally created limitations and boundaries, or send us spiraling into the murky depths of grief and chaos. Neptune energy can be harnessed for growth and change, particularly when we take the time to embrace the energy and the lessons Neptune gently or brutally is sending our way. Neptune is a slow planet and takes 14 years to transit through a sign, and 165 years to orbit the sun. It has been retrograde since May 28, and finally turns direct on November 4.
Neptune retrograde periods encourage us to reflect on our past, to contemplate our connectedness with ourselves, emotions, and spirituality. The retrograde periods can be a time of denial, delusion, and escapism - often bringing us to our lowest points, whereupon we come to the conclusion that we need to grow, evolve or change.
When Neptune turns direct it is time to implement the needed changes that the retrograde has brought to light. For most, this is a time of clarity - we create and receive less drama, are more aware of deceptions and manipulations, and even can recognize and break our negative and codependent tendencies.
The supports for the nifty is at 4625 levels and resistance at 4800 levels.
The supports for the sensex is at 15400 levels and resistance at 16050 levels.
Yesterday’s calls sent via sms and messenger
Suzlon – sell at cmp 60.25 sl 61.80 targets 57 , went 53.80
Jp associates – sell at cmp 201 sl 203.50 targets 195 , hit sl
Itc – buy at cmp 252.90 sl 251 targets 256 , hit targets like a dot , went 256
Suzlon 60 pa – buy at cmp 5 sl 4.50 targets 7.50 , went 9
Nifty – sell at cmp 4619 sl 4641 targets 4580 , went 4581.20
Tisco 440 ca – buy at cmp 23.70 sl 21 targets 28 , went 43.70
Nifty 4600 pe – buy at cmp 119 sl 111 targets 140 , went 139.95
Jackpot Tisco – buy at cmp 447 sl x targets x – 3 days (booked full profits at 455 the same day)
Fii Lic – buy at cmp 715 sl x targets x – 3 days (booked full profits at 730 the same day)
Punter Jindal saw – buy at cmp 666 sl x targets x – 3 days (booked full profits at 680 the same day)
Dii Rolta – buy at cmp 151.50 sl x targets x – 3 days (booked full profits at 159.75 the same day)
