The indices broke the consolidation zone and managed to make a fresh high on nifty front after many failed sessions and trials , but could not sustain at those levels and saw a selling pressure.
The indices have likely made a double top pattern on the nifty front around 5190 levels , from where it has reacted on profit booking and fresh shorts.
Also many heavy weights and mid caps gave off the gains and the pattern of the markets is suggestive of a tired bull .
However the undertone of the markets has not been compromised and the trend remains intact , but volatility and choppiness would be the order of the day.
Also it been the last day of the trading week , the indices can see some more selling pressure and reaction at every rise.
So any bounce or upmove which comes will be viewed with suspicion and can be used for shorts , however one must closely watch the levels of 5190 on the nifty front where a double top formation has been made , if the nifty manages to trade above it and close above it with sustained volumes , then shorts are not viable and the indices can enter into an unchartered territory.
On the lower side 5100 levels looks like important support zones , as long as these levels are held the markets looks up ,but with volatility.
Any break and breach of this levels will indicate signs of weakness and fresh shorts.
Historically December has been a good series , so if the bull trend has to continue and ferver ahead in 2010 ,the indices needs to show strength and close above 5190 .
A failure to do so will indicate weakness and lack luster movement in initial January and a build up there for run up to the budget.
Now the main question remains to trade , so from a trading point of view I will buy at dips to 5100 and exit at upper levels on any rise and short near 5190 levels.
I would maintain 5098 as a stoploss for all longs and trail it , and exit longs on a break of this levels and short the markets.
On the up side I would maintain a stoploss of 5193 for all shorts and exit shorts on a rise above this levels.
So as far as the nifty remains in this range of 5100-5190 , it will provide opportunity for both long and short trades., same applies for high beta stocks.
However one needs to be quick and practical on screen , as trading is not easy as speaking .
The supports for the nifty is at 5098 levels and resistance at 5193 levels.
The supports for the sensex is at 16800 levels and resistance at 17600 levels.
Yesterday’s calls sent via sms and messenger
Everonn – buy at cmp 420 sl 413 targets 435 , went 429
Tata chemicals – buy at cmp 312 sl 308 targets 320 , went 320.15
Nifty 5200 ce – buy at cmp 95 sl 84 targets 120 , went 119.80
Itc – buy at cmp 258 sl 256 targets 264 , hit sl
Tisco 580 ca – buy at cmp 27 sl 25 targets 33 , went 31.70
Nifty – buy at cmp 5147 sl 5128 targets 5190 , went 5191.55
Idbi 135 ca – buy at cmp 5.65 sl 5.25 targets 8 , went 7.05
Fii Ibrealest – buy at cmp 222 sl x targets x – 3 days (booked full profits at 227 the same day)
Jackpot Indusind bank – buy at cmp 139 sl x targets x – 3 days (booked full profits at 142 the same day)
Secret Mascot Bharti Shipyard – buy at cmp 192 sl x targets x – 3 days (booked full profits at 205 the same day)
Dii Polaris – buy at cmp 181 sl x targets x – 3 days (booked full profits at 189 the same day)
Punter Mphasis bfl – buy at cmp 679 sl x targets x – 3 days (booked full profits at 695 the same day)
Wednesday’s Btst Nifty – booked full profits at 5185 , long from 5127
Wednesday’s Btst Nifty 5200 ce – booked full profits at 119 , long from 103
