The week gone saw the highest volatility and a short term top at our resistance levels of 5200 on nifty from where it reacted and saw a steep coorection to our support levels of 4700.
Technically the markets have seen a good steep correction and became oversold on technical parameters which led a short covering rally and a bounce on indermediate terms.
However it doesn’t indicates any strength and initiation of fresh longs and the indices sets itself for a reaction as it inches higher.
Structurally the indices and markets would have been better off staying at lower regions for a couple of days and consolidated before it moved up , but the indices have jumped like a spring from the support levels indicating the brute strength and undertone of the markets.
So we are continuously advising buy at dips strategy with a straddle pattern and exit on rise and resistance and refrain from huge shorting at higher levels.
The coming sessions are likely to be volatile and choopy with a probable two side movement .
On the lowerside major and crucial supports exists at 4680 on nifty front and 15810 on sensex front , below which we are likely to see levels of 4400 and 14800 on nifty and sensex respectively.
On the upper side if the markets inches to an overbought zone , then its likely to move upto 16650 on sensex levels , from where it could see a reaction.
From a trading point of view , I would buy dips close to supports and exit at resistance levels and short if my crucial levels are breached with sustained trading.
The supports for the nifty is at 4745 levels and resistance at 4865 levels.
The supports for the sensex is at 16010 levels and resistance at 16250 levels.
Stocks to watch
Stc India , torrent power , rcf looks good
Friday’s calls sent via sms and messenger
Fii Mphasis bfl – buy at cmp 688 sl x targets x – 3 days (booked full profits at 701 the same day)
Jackpot Bank of India – buy at cmp 368 sl x targets x – 3 days (booked full profits at 372.50 the same day)
Icici bank – buy at cmp 850 sl 846 targets 864 , hit sl
Tisco 500 ca – buy at cmp 21 sl 17.50 targets 27 , went 27.70
Tisco – buy at cmp 502.50 sl 500 targets 511 , went 507.90
Ivrcl infra – buy at cmp 360 sl 357 targets 368 , went 373
Thursday’s Punter Ranbaxy – booked full profits at 405 , long from 396
Thursday’s Dii Crane software – booked full profits at 36.50 , long from 34.80
Tuesday’s Fii Telco – booked full profits at 584 , long from 568
Tuesday’s Jackpot Eih hotel – booked full profits at 130 , long from 124
Tuesday’s Dii Apar inds – booked full profits at 171 , long from 162
