morning thoughts..
The indices remained above our crucial levels of 4800 and bounced to trap all shorts once again.
We have intimated that one should buy near to crucial levels with a stoploss below 4800 and the strategy has paid with a good bounce.
Technically the indices are in an undecisive mode but will remain up as long as the crucial levels of 4800 are held on nifty front.
However it will face stiff resistance around 5050 and can also be assumed as reactive and supply zone , but that can be temporary and short lived.
So the strategy is still to buy on dips and refrain from huge shorts at lower levels until and unless a strong sell on technical parameters emerges.
The markets has displayed a typical bull pattern today with the indices bouncing and trapping shorts on indices front , though no movement was viable and visible in majority of stocks.
Though stocks and sectors which are proportional to dollar index has shown gains in equal proportion and sectors like metals , selective oil stocks , gold and jewellery stocks have seen good momentum.
The banking index and nifty is also displaying good strength and the sector can outperform in the coming sessions.
After a long period of time a typical Basket Trading was clearly visible in the markets , such trading is usually done by big fii’s , dii’s and mutual funds and general retailer and investor is unaware of such type of trading and gets trapped in the way.
For eg Metal index and sector is showing strength , so a basket trader buys tisco and sells sail , in IT sector – mphasis bfl is bought and rolta is sold and so on.
But now the questions comes that how to know what to buy and what to sell in basket trading – well this is caught by defty index and arbitrage trades.
We have been using the strategy of basket trading for a couple of days as of now as the markets are providing opportunity to both bulls and the bears.
The general euphoria created all around is of pessimism and sell , but that can be a vicious and a fault of life – as the best would be still waiting to come.
So the theme is to stop thinking about index levels much and trade the levels of stocks visible on screen.
The coming session is likely to be volatile with sectoral shifts and spurts in stocks with a sudden , as we have witnessed today.
The supports for the nifty is at 4850 levels and resistance at 5000 levels.
The supports for the sensex is at 16300 levels and resistance at 17000 levels.
Stocks to watch for a medium to long term view
Prakash inds – also given as a multibagger call on diwali – the stock is a giant in C.I and Pvc pipes and has a strong monopoly in far east and asian countries , with the growing construction needs , we believe it’s a potential and a must stock for every portfolio.
Titan Inds – though the stock is in four figures , but has the potential and great future for a double the size from cmp , the company is on a spree of major expansion and will come out with 100-200 outlets in kolkata and delhi in FY10 , the companys jewellery business under the brand name Tanishq is expected to grow by 30-40% every year , so we take it as a strong candidate for portfolio expansion.
Mphasis Bfl – a heavy in IT is an a strong accumulation zone with a healthy management leading it , the stock is unperturbed by daily movements of markets and qualifies as a tenbagger stock and will see four digits soon.
Gujarat minerals development corporation – also given as tenbagger scrip on diwali at 100 rs , the stock has made a high of 187 after the call in just 3 months , we are highly bullish on the stock , the stock is a state based psu with its root in Gujarat , the company is a major in natural minerals and has a monopoly in iron –ore and bauxite with 99% mines of India under its buggy and control , recently the Gujarat government has reserved all contracts for iron – ore and bauxite mining for gmdc and termninated all private contracts , which will give a major boost to the company and the revenues will double in the current financial year , we believe that it’s a strong buy and hold for a patient investor , with the company paying 100% dividend without fail every year , this stock can prove to be a gold mine in coming years .
Sugar Stocks – a boom or doom – or a probable “White Gold” – the government is helpless to control sugar prices , though sugar cane production is on boom , our close resources and affiliates in many sugar companies intimated us about the boom in the sugar industry , many companies –names cant be disclosed for personal and other reason are on a major expansion spree and are exporting and buffer stock in huge quantities anticipating a major spurt in sugar prices , and a close affiliate in a sugar giant company told us that the companies are making huge profits but are creating an illusion of losses and in coming years sugar is likely or rather can be deemed as “White Gold
So from an investing point of view , we believe that commodity stocks like sugar , tea can certainly make portfolios sweet.
We have given 5 fundamentally and technically strong scrips , loaded with reasons and our information though one must certainly go through their own research and study before investing.
Stocks to watch for the day
Jsw steel , rnrl , kprmill , sail ,essar oil looks good
We like banking sector for coming days – so icici bank , axis bank , kotak bank can be accumulated at dips.
We request traders and investors to stay away from news based and penny stocks in excitement , people buy side line and penny counters in excitement in urge of making quick money and gets trapped in turn losing their money and opportunity to make profits in an earning and trader friendly market.
Bull market usually brings with itself lots of rumour and news based counters which sweeps off small investors capital – so we warn and request you all to stay away from such counters.
We are seeing many groups and people circulating such type of stocks everyday via sms and websites with a fancy of doubling and tripling in 2-3 days , which is a complete trap for small traders – so we warn all traders and investors against any such activites for their well sake.
This thing is very easy , this operators buy data base of people and use bulk sms service to circulate such weird stocks and rumours – so dear friends always go with quality and patience and not greed and blind sms.
OUR WARRANTY PACK HAS BROKEN ALL SHACKLES AND GIVEN A CLEAN SWEEP RETURNS OF OVER 1,50,000 IN 4 DAYS ,AMIDST ALL VOLATILITY AND CHOPPINESS.
WE HAD GIVEN THE FOLLOWING STOCKS SO FAR
Bajaj hind (1425)– sell at 197 sl 202 targets 190 – booked at 191 (profit - 1425*6 = 8550)
Triveni eng (3850) – buy at 129 sl 126 targets 137 – booked at 134 (profit – 3850*5 = 19250)
Lic (425) – buy at 778 sl 770 targets 800 – booked at 794 (profit – 425 *16 = 6800)
Gmdc (1000) – buy at 151 sl 146 targets 165 – booked at 159 (profit – 1000 *8 = 8000)
Ramsarup inds (1000) – buy at 78 sl 75 targets 86 – booked at 84 (profit – 1000*4 = 4000)
Ivrcl infra (1000) – buy at 321 sl 313 targets 335 – booked at 329 (profit – 1000 *8 = 8000)
Neyveli lignite (1475) – buy at 151 sl 146 targets 165 – booked at 158 (profit – 1475 *6 = 8850)
Praj inds (2200) – buy at 85.30 sl 81 targets 95 – booked at 90 (profit – 2200 *4.70 = 10340)
Rolta (1800)– buy at 201.50 sl 195 targets 220 – booked at 212 (profit - 1800 * 10.50 = 18900)
Tisco (764)– buy at 545 sl 530 targets 590 – booked at 575 (profit - 764 *30 = 22920)
Obc (1200)– buy at 256 sl 250 targets 290 – booked at 275 (profit – 1200 *19 = 22800)
Torrent power (1000) – buy at 290 sl 275 targets 330 – booked at 310 (profit – 1000 * 20 = 20000)
Since Gmdc , Ramsarup inds , Torrent power is not in f/o and only in cash – so we have taken 1000 for cash stocks, rest are 1 lot per stock
Total no of days – 4
Total calls – 12
Total succeded calls – 12
Total failed calls – 0
Total profit = 8550+19250+6800+8000+4000+8000+8850+10340+18900+22920+22800+20000
= Rs 158360
www.astroeyes.co.cc
for more details call 09962547580
Yesterday’s calls sent via sms and messenger
Punj lyod – sell at cmp 187.50 sl 189 targets 184 , hit sl
Essar oil – buy at cmp 140 sl 138 targets 145 , went 143.95
Nifty – buy at cmp 4869 sl 4855 targets 4950 , went 4949.90
Tisco 600 ca – buy at cmp 16.65 sl 15 targets 21 , went 22.95
Pfc – buy at cmp 253.50 sl 252 targets 257 , went 257.65
Mphasis Bfl – buy at cmp 698 sl 694 targets 710 , went 724.60
Suzlon 80 ca – buy at cmp 2.85 sl 2.50 targets 4.25 , went 3.50
Nifty 4800 pe – buy at cmp 88 sl 80 targets 105 , hit sl
Btst Tisco – buy at cmp 591 sl 587 targets 605 , booked profits at 597 the same day
