morning thoughts..
As said and expected the markets remained highly volatile and saw a sharp rebound from lower support levels of 4900 on nifty front.
So in coming days 4900 would act as crucial and pschyological levels for any downfall.
Technically there has been no compromise in the trend and the undertone of the markets remain bullish.
We are continuously been advising a buy on dips strategy and refraining from shorts at lower levels , well the markets has obliged each time and shorts have been butchered and trapped badly at lower levels.
As the indices continue to trade in a range with no major movement , stock specific activities are on a roll and would continue to see a sectoral shift with every session.
So one needs and requires to concentrate on high beta stocks at lower levels as they are likely to rebound faster with every rise and vice versa.
Structurally the markets have taken supports at lower levels and have seen shed of open interest in out of money 4700 – 4800 puts with a massive build up of OI in out of money calls of 5100- 5200 levels with rising IV’S and a contra macd of 65 on nifty.
With expiry mid month trading , the contracts still have two weeks for expiry , this indicates that traders are betting on long side and buying on dips , however such a build up before expiry is not good for a smooth rise and sooner than letter will see a reverse contract to neutralize the out of money calls , as call writers are writing calls on a high premium irrespective of higher implied volatility and lesser time factor.
So from a trading point of view I would be cautious at higher levels and buy on dips closer to my support levels of 4900 and keep it as a stoploss for all longs and short only on a strong sell signal below 4900.
On higher levels I would watch the resistance levels of 5150 for all longs , above which the momentum can electrify.
Astrologically there has been a major change of planets on the weekend .
Saturn Square Pluto: Challenging Times Ahead!
On Saturday, November 15, Saturn forms a square to Pluto, setting off a series of configurations whose influence will last for a few years. This astrological event promises to be intense in what it implies for all of us.
When planets come into a square, they are perpendicular to each other like the right angles at the corner of a building.
Saturn imposes limits, while Pluto tends to bring out obsessive behaviors. Saturn also produces a black cloud of pessimism to affairs, while Pluto intensifies the emotional impact of events. With this dynamic, it's likely that you'll feel quite restricted by social and environmental constraints, and that the influence of the society in which you live will have considerable impact upon your life, often appearing to be a negative one. Frustration may be inevitable.
This Saturn-square-Pluto configuration will be touched off by other planets all through 2010. Saturn's recent entrance into Libra (where this responsibility-focused planet will remain for the next two-and-a-half years) will put your relationships into focus.
The supports for the nifty is at 4925 levels and resistance at 5125 levels.
The supports for the sensex is at 15900 levels and resistance at 17050 levels.
Stocks to watch
Ranbaxy , ivrcl infra , jsw steel , network18 looks good
www.astroeyes.co.cc
Friday’s calls sent via sms and messenger
Jet air – buy at cmp 456 sl 452 targets 465 , went 466.70
Unitech – sell at cmp 84 sl 86 targets 80 , went 82.30
Suzlon – sell at cmp 69 sl 70.50 targets 66 , went 66.10
Nifty – buy at cmp 4962 sl 4949 targets 5005 , went 5023.70
Nifty 5000 ce – buy at cmp 88 sl 79 targets 105 , went 103.90
Unitech 80 ca – buy at cmp 2.95 sl 2.50 targets 4.50 , went 3.70
Suzlon 65 pa – buy at cmp 2.50 sl 2.10 targets 4 , went 3.75
Btst Sail – buy at cmp 177.30 sl x targets x - holding
Punter Hcc – buy at cmp x sl x targets x - holding
Fii Sun pharma – buy at cmp 1440 sl x targets x – 3 days (booked full profits at 1459 the same day)
Jackpot Jsw steel – buy at cmp 845 sl x targets x – 3 days (booked full profits at 864 the same day)
Thursday’s Fii Ivrcl infra – buy at cmp 398 sl x targets x – 3 days (booked full profits at 405 on Friday)
Thursdays Dii Ranbaxy – buy at cmp 397 sl x targets x – 3 days (booked full profits at 418 on friday)
