As said and expected the bounce back came on account of short covering and short squeeze .
The indices has managed to stay above the crucial levels of 4950 on nifty front , now these levels are of crucial importance on technical parameters and the markets are considered to be up as long as this levels are held.
The past few sessions has witnessed an increase in intraday volatility with no major movement in indices , however certain stocks are showing strength on charts and breaking out irrespective of volatile and negative trend of the markets.
Many sectors including pharma and metals are showing tremendous strength against the basic trend of the markets , so needs to be accumulated at dips.
From a trading point of view the volatility is likely to continue for couple of more sessions as we are into a truncated week of trading with a f/o expiry due next week , until then the markets are likely to be volatile and provide trading opportunities on both long and short trades.
So one must keep watch on 4950 on lower sides and use dips to 4900 to go long and exit near resistance levels of 5050.
The supports for the nifty is at 4950 levels and resistance at 5050 levels.
The supports for the sensex is at 16500 levels and resistance at 16900 levels.
Stocks to watch
Sail , sesa goa , ibrealest looks good
Yesterday’s calls sent via sms and messenger
Fii Tanla solutions – buy at cmp x sl x targets x – holding
Dii Bharti airtel – sell at cmp 312 sl x targets x – hit sl at 317
Punter Ibrealest – buy at cmp 209 sl x targets x – holding
Gmdc – buy at cmp 140 sl 137.80 targets 146 , went 145
Sail 215 ca – buy at cmp 3.50 sl 3 targets 4.50 , went 14.35
Jackpot Sail – buy at cmp 214.50 sl x targets x – 2 days (booked full profits at 219 the same day)
Nifty 4900 ce – buy at cmp 108 sl 102 targets 120 , went 121
Nifty – buy at cmp 4975 sl 4961 targets 5005 , went 5001
Secret Mascot Bajaj hind – sell at cmp x sl x targets x – holding
