morning thoughts..
As said and expected the indices moved exactly as analysed and predicted and gave opportunities on both long and short trades.
Technically the trend of the markets are still intact up and will yet again provide opportunities on both sides , but now the velocity and reactions will be more fast and volatile.
So one needs to be quick enough and book quick profits , or stoplosses on both sides will get hit.
From technical parameters as long as 5100 on nifty front is held , the indices has the capacity to bounce and go near to the double top levels of 5190.
A breach and break of 5100 , indicates weakness and an opportunity to short , but again one needs to be cautious and quick enough and keep close watch on volumes , a sustained trading below 5100 can fuel a swift slide and fall , and the logical and technical targets for any such downfall is initially at 4900 levels which will provide some cushion to the slide , but is not a crucial support and a trade below it can see levels of 4850 and 4765 which are very strong and vital supports and not easy for the bears to nail through.
On the upside 5190 remains as a stiff resistance zones and a double top zone and must be viewed with respect , however the shorts here can be trapped or laid on trapped surface as a false multiple tops indicator , if this happens then the shorts will be badly butchered and will not get a short squeeze and covering until 5250 -5325 levels., which is also uncertain and can get stretched to 5325 levels which is next logical target above 5190.
So for a short term trader with an unprofessional attitude , trading indices in this zones is a tough task and not easy and calls for caution.
However from a trading point of view , I view and see the indices providing opportunity to trade on both long and short side , however with smaller spread.
So I would not be greedy on part of big spreads and book quick , small profits on both trades and in turn earn the same as I would have done in one big spread.
I would like to watch 5100 levels closely and buy near to it and exit at resistance –multiple top levels and short there and again cover at lower levels, but again I would refrain from huge longs at 5100 and huge shorts at 5190 levels as it can be a well planned surface laid trap”.
Same applies for high beta stocks , where incidentally the opportunity is more than indices and I would like to concentrate on them.
The supports for the nifty is at 5095 levels and resistance at 5190 levels.
The supports for the sensex is at 16500 levels and resistance at 17600 levels.
Stocks to watch
Bilpower , manaksia , ranbaxy looks good
www.astroeyes.co.cc
Friday’s calls sent via sms and messenger
Gmr infra – buy at cmp 71 sl 69.50 targets 75 , went 73.10
Rolta – buy at cmp 186.50 sl 184 targets 192 , hit sl
Nifty 5200 ce – buy at cmp 88 sl 78 targets 105 , went 108.85
Nifty – buy at cmp 5118 sl 5098 targets 5155 , went 5169.90
Ibrealest – buy at cmp 225 sl 222 targets 232 , went 229.90
Tisco 580 ca – buy at cmp 24.50 sl 23 targets 29 , went 27.55
Ranbaxy 510 ca – buy at cmp 18.75 sl 17 targets 22 , went 24
Secret Mascot Ranbaxy – buy at cmp 507 sl x targets x – 3 days (booked full profits at 514 the same day)
Jackpot Gail – buy at cmp 415 sl x targets x – 3 days (booked full profits at 418 the same day)
Fii Mphasis Bfl – buy at cmp x sl x targets x – holding
Dii Gmdc – buy at cmp x sl x targets x – holding
Punter Praj inds – buy at cmp 91.40 sl x targets x – 3 days (booked full profits at 94 the same day)
