Yet again a perfect analysis at work and the markets behaved and panned out as described and predicted and the “ perfect laid surface trap”
We had said markets will provide both long and short opportunities , and one need to be very quick and not to be greedy on big spreads and refrain from huge shorts below 5100 , well the markets saw a quick 40 points fall below 5100 and laid a perfect surface trap for short sellers .
Now as the shorts have been badly trapped and butchered for the day , the short covering and short squeeze will probably take it to a fourth attempt to retest double top levels at 5190, where lies the stiff resistance zone, but again a crossover will take it to 5250 and 5300 which is the next logical targets for any upmove.
However I would not believe the upmove as confirmatory , until and unless it closes above 5205 , and even if it does it can stretch to a mere 100 points on nifty like 5250-5300, which is a very stiff resistance and reactive zone , and a probable reaction and downside is likely at every attempt to 5190-5225-5250-5300.
So this means that this zone will be volatile and choppy –even if the markets goes up , it will not be easy to trade and many stocks will not move and rather show negative divergence creating irritation among traders.
Many chartist and analysts speak of gap filling on charts , but they are unaware that in a secular and strong bull markets gaps are never filled and even if there is an attempt to cover or fill the gap , the reaction and bounce is much more stronger and with a vengeance , the pattern is only laid by fiery bulls to trap shorts –so such ideas of gap filling and so on must be dropped in the bin , however corrections are a part of market , and it comes and will come , and its always good and healthier for the markets , but that correction must not be taken and pre assumed as any such gap filling or bear market theory and claims that it has fallen as they were saying and thinking…
One needs to follow the trend and respect the screen
Technically the undertone of the markets are strong with no compromise in the trend and its still a buy on dips market and the major opportunity lies beyond and outside the indices.
However one must not turn over optimistic and take huge blind long positions , discipline is the order and the word for the coming sessions and one needs to follow it , with proper stoplosses and small spreads and avoid being greedy and book quick profits as markets will give opportunity to trade on both long and short trades.We have been doing the same in recent days with trading more scrips and booking in smaller spreads with tight stoplosses , more trades –smaller spreads = less trades – bigger spread , all depends on nature of markets and opportunity it provides –currently it says –“ be quick , trade more , trade on both side , book quick , small spread”
For any one in the market the aim and motto is to earn money – be it long or short , be it sensex 10,000 or 20,000 , the number has no meaning , its just a pschyological affect and perception, what matters is right trade at right time ---ofcourse not every time .
So for the coming day nifty is having supports at 5105 levels and resistance at 5190 levels .
The sensex will find supports at 16850 levels and resistance at 17600 levels
Stocks to watch
Kernex , unitech , ansal housing looks good
www.astroeyes.co.cc
Yesterday’s calls sent via sms and messenger
Praj inds – buy at cmp 92 sl 90.50 targets 96 , went 96.40
Hind oil – buy at cmp 289 sl 285 targets 300 , went 296
Nifty 5100 ce – buy at cmp 115 sl 107 tr 132 , went 154.30
Ifci – buy at cmp 53.75 sl 53 targets 55 , went 57.65
Nifty – buy at cmp 5085 sl 5061 targets 5125 , went 5162.80
Unitech 90 ca – buy at cmp 4.10 sl 3.60 targets 5.50 , went 6.35
Dlf 380 ca – buy at cmp 15 sl 13 targets 19 , went 21
Ifci 55 ca – buy at cmp 2.10 sl 1.70 targets 3.30 , went 4.30
Gmdc – buy at cmp 139.50 sl 137 targets 146 , went 143.55
Punter Gitanjali gems – buy at cmp 118 sl x targets x – 3 days (booked full profits at 122.50 the same day)
Fii Rolta – buy at cmp 181 sl x targets x – 3 days (booked full profits at 183 the same day)
Secret Mascot Unitech – buy at cmp 88 sl x targets x – 3 days (booked full profits at 89.40 the same day)
Dii Neyveli lignite – buy at cmp 153 sl x targets x – 3 days (booked full profits at 156 the same day)
Jackpot Idbi – buy at cmp 133 sl x targets x – 3 days (booked full profits at 135.40 the same day)
Monday’s Fii Mphasis bfl – book full loss at 695, long from 707 , hit sl at 690
Tuesday’s Dii Pfc – book full profits at 269 the same day , long from 264
Tuesday’s Jackpot Essar oil – book full pofits at 146 the same day , long from 143
Monday’s Dii Gmdc – in hold , long from 140
