morning thoughts..
The indices continued to be in a range with a negative bias with no major movement in stocks .
Technically the momentum looks tired with no strength on technical parameters, so any bounce or short covering is likely to meet selling pressure as higher end.
However from past couple of sessions we have witnessed a two side movement and the markets giving of gains at the later hours , so now one must be cautious for the same to happen again and shorts are likely to get trapped in 1-2 sessions with a violent reaction on the upper side.
So from a trading point of view , one must not short at force and look for intraday dips to go long and book quicker , however the downfall has a logical target of 4850 on the nifty front , till where the indices can slip in the ongoing volatility and negativity.
Amidst such volatility a violent short squeeze and short covering in later session and coming days is not ruled out , so one must keep watch on shorts.
The supports for the nifty is at 4850 levels and resistance at 4990 levels.
The supports for the sensex is at 16400 levels and resistance at 16900 levels.
Stocks to watch
Praj inds , ranbaxy , heg looks good
Yesterday’s calls sent via sms and messenger
Sail – buy at cmp 214 sl 212 targets 218 , went 215.90
Nifty – sell at cmp 4985 sl 5002 targets 4940 , went 4937.15
Tisco 580 ca – buy at cmp 9.25 sl 8 targets 12 , hit sl
Nifty 4900 pe – buy at cmp 45 sl 37 targets 60 , went 53.80
Unitech 80 ca – buy at cmp 2.90 sl 2.50 targets 4.50 , went 3.50
Dii Praj inds – buy at cmp 96 sl x targets x – 3 days (booked full profits at 98 the same day)
Fii Mphasis Bfl – buy at cmp 738 sl x targets x – hit sl at 731
Jackpot Ranbaxy – buy at cmp 530 sl x targets x – 3 days (booked full profits at 537 the same day)
Punter Rolta – buy at cmp 185.50 sl x targets x – 3 days (booked full profits at 190 the same day)
Secret Mascot Telco – buy at cmp x sl x targets x – holding
Tuesday’s Punter Bajaj hind – booked full profits at 217 , long from 211
Tuesday’s Secret Mascot Dlf – booked full profits at 362 , short from 381
Tuesday’s Fii Lic – booked full profits at 775 , short from 790
Wednesday’s Jackpot Punj lyod – booked full profits at 206 , long from 202
