morning thoughts..
The indices could not sustain the pressure at double top levels of 5180 and saw a steep down move and closed below the crucial levels of 5050 on the nifty front.
Technically a trade below 5050 indicates weakness on short term charts and some more down sides can be witnessed in the coming sessions.
However every downside will meet some short covering and buying interest at lower levels which will result in intermediate bounces , but any such bounce will again meet selling pressure , so any bounce will be viewed with suspect and caution and would provide shorting opportunities ,until and unless a strong support for creating longs is witnessed.
Structurally the markets have declined after a long period of consolidation and looks like its tired and not ready for broader move in a hurry , also the last 30 mins have witnessed a sharp cut in many midcaps which calls for caution for short term traders.
The coming session is likely to be highly volatile with a probable two side movement.
The nifty implied volatility ratio is swinging like a pendulum between 25-30% which indicates a range bound volatile session.
From a trading point of view , one should look for intraday dips to create small longs and book quickly and reverse trade on intraday rise , however one must refrain from huge short and long positions.
Following the niftys iv’s and macd of 65 , out of money calls would be a good option at lower levels and out of money puts at higher levels , but one must keep the time factor in mind.
The supports for the nifty is at 5005 levels and resistance at 5120 levels.
The supports for the sensex is at 16600 levels and resistance at 17200 levels.
Stocks to watch
Heg , niit tech , orchid chemicals looks good
www.astroeyes.co.cc
Yesterday’s calls sent via sms and messenger
Lic – sell at cmp 800 sl 805 targets 785 , went 782
Unitech – buy at cmp 86.50 sl 85.45 targets 90 , went 88
Ranbaxy – buy at cmp 521.50 sl 518 targets 528 , hit sl
Btst Gmdc – buy at cmp 142.50 sl 140 targets 146 , booked the same day at targets
Stbt Federal bank – sell at cmp 241 sl 244 targets 235 , booked the same day at targets
Punter Bajaj hind – buy at cmp 211 sl x targets x – holding
Secret Mascot Dlf – sell at cmp 381 sl x targets x – holding
Dii Bharti airtel – sell at cmp 320 sl x targets x – 3 days (booked full profits at 315 the same day)
Fii Lic – sell at cmp 890 sl x targets x – holding
Jackpot Mphasis – buy at cmp 709 sl x targets x – 3 days (booked full profits at 715 the same day)
Monday’s Dii Gmdc – booked full profits at145 , long from 140
Thursday’s Jackpot Gitanjali gems – booked full loss at 118 , hit sl at 118
Thursday’s Punter Essar oil – booked full loss at 139 ,hit sl at 139
