morning thoughts..
We said to avoid shorts and buy on dips , well the markets opened with a bull gap and continued to move up with a vengeance and in turn trapped shorts.
We have been continuously saying and advising to refrain from shorts and a violent reaction on the upside , and it came after a good consolidation and volatility with range bound moves for a couple of days.
Technically the charts have shown tremendous strength and has managed to stay above 4950 levels and gave a closing above 5125 levels , which is a good indicator on short and medium term parameters.
Once again the nifty will try to breach and flirt with double tops rather a triple top this time , which is most stiff resistance and reactive zone for the indices, if the indices manages to take it out and closes above 5225 levels with sustained volumes , then the next logical targets for the nifty is 5350 and we could be headed for a ferocious bull in 2010.
Above 5350 the nifty will enter into an unchartered territory and many stocks will witness fresh and new highs.
On the lower side the base bottom has moved up on the higher side and 4500 looks like a solid support for any major decline , if any in coming days , however on short term parameters 4900 and 4750 are crucial and very strong supports to deal with and will not be easy to break them with coziness.
Yesterday we spoke of pharma and metal sectors and each and every stock of the sector outperformed the broader markets yesterday.
From a trading point of view , shorts have been badly trapped and looks like an extension of their butchering in the coming sessions.
Also we are heading into a long weekend with f/o expiry due next week and on traught of new year , the extension of the bull run looks in run with a ferocious bull waiting in 2010 .
The supports for the nifty is at 5050 levels and resistance at 5200 levels.
The supports for the sensex is at 16900 levels an resistance at 17500 levels.
Stocks to watch
Sasken comm , suzlon , praj inds looks good
www.astroeyes.co.cc
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Yesterday’s calls sent via sms and messenger
Nifty – buy at cmp 5013 sl 4994 targets 5055 , went 5161.90
Nifty 5000 ce – buy at cmp 55 sl 49 targets 70 , went 170
Praj inds – buy at cmp 98.20 sl 97 targets 101 , went 102.90
Tisco – buy at cmp 584 sl 581 targets 590 , went 606.40
Dlf 360 ca – buy at cmp 7.20 sl 6 targets 10 , went 11.95
Dlf – buy at cmp 359 sl 357 targets 365 , went 367.45
Secret Mascot Sasken Communications – buy at cmp 196.50 sl x targets x – 2 days (booked full profits at 200 the same day)
Punter Gmdc – buy at cmp x sl x targets x – holding
Jackpot Suzlon – buy at cmp 86.50 sl x targets x – 2 days (booked full profits at 89 the same day)
Fii Rolta – buy at cmp 189.50 sl x targets x – 2 days (booked full profits at 191.50 the same day)
Dii Unitech – buy at cmp x sl x targets x – holding
Monday’s Secret Mascot Telco – booked full profits at 750 , long from 735
Tuesday’s Punter Ibrealest – booked full profits at 216 , long from 209
