The markets yet remained highly volatile and trapped shorts to close in the positive.
We had already said that huge shorts at lower levels can be hazardous and Indian markets can react in an opposite direction to world cues , well the markets gave a perfect obligation.
Technically the markets have generated a buy signal , however the markets will remain highly choppy and volatile and will yet again give a two side movement, so one will have to be very quick and attentive or stoplosses will be hit on both sides.
From a trading point of view , one should look to buy dips and oversold stocks for a probable bounce back in the day.
The supports for the nifty is at 4710 levels and resistance at 4830 levels.
The supports for the sensex is at 15800 levels and resistance at 16500 levels.
Stocks to watch
Tyre stocks – Apollo tyres , good year
Metal stocks – tisco , hindalco , sail
Rpower , ibrealest , oil stocks – hpcl , bpcl , hoec , essar oil , gulf oil looks good
www.astroeyes.co.cc
Stocks for an investment perspective
Supreme petrochemicals – the company is the largets producer and exporter of polystyrene polymer and we last covered it on diwali 2009 , where we gave it as a probable multibagger at 28 , the stock has touched 40 since then and the revenues of the company are on a spree and taking forward FY12 earnings with an EPS of 3 and PE well below 15 , we believe the company has strong potential to manifold in years to come , the management has to control its opm , which on track will see the stock on a fast track soon.
Neyveli Lignite – a gold mine in psu’s , though the stock belongs to a centre based psu , but is undervalued at current market price , on a whole we are bullish on companies which have reserves in minerals and natural resources , and the company is diversified into power , resources , mining and coal generation , it’s a buy on every dips and a sweet stock to hold.
Classic Diamonds – a small company in gems and jewellery stock – only in terms of prices , the stock is trading at an undervalued price of 20 , whereas the bookvalue of the stock is near 35 , which clearly indicates the potential of the company , however the sector was highly affected by the recent recession and slowdown in united states and far east where major of its business lies , but that seems to be over now and the research cmie data shows that exports of India will grow by 30% annually on a compounded basis , so being a low folio stock , it can manifold from cmp in coming times.
HCC – a dark horse in construction space , the company is in strong hands and the management is on high growth spree , with the recent establishment of the company in its worli – bandra flyover in Mumbai , the toll is on rise and the company will come with many such projects in near future and has an order book over 500 crores till 2015 , with so much work and toll , we believe that the company can be diamond in construction space.
Yesterday’s calls sent via sms and messenger
Neyveli lignite – buy at cmp 147.50 sl 146 targets 151 , went 152.95
Nifty – buy at cmp 4740 sl 4719 targets 4800 , went 4818
Nifty 4800 ce – buy at cmp 83 sl 75 targets 105 , went 115.70
Praj inds – buy at cmp 84 sl 82.50 targets 87 , went 85.85
Rolta – sell at cmp 177 sl 179 targets 173 , hit sl
Icici bank 820 ca – buy at cmp 16.65 sl 15 targets 21 , went 24
Btst J&K Bank – buy at cmp 605 sl 603 targets 613 , booked the same day 617
Secret Mascot Patni Computers – buy at cmp 466 sl x targets x – 2 days (booked full profits at 481 the same day)
Punter Mphasis Bfl – buy at cmp 704 sl x targets x – 2 days (booked full profits at 722 the same day)
Fii Astrazenca Pharma – buy at cmp 848 sl x targets x – 2 days (booked full profits at 868 the same day)
Dii Gati – buy at cmp 56 sl x targets x – 2 days (booked full profits at 60 the same day)
Jackpot Gitanjali gems – buy at cmp 114 sl x targets x – 2 days (booked full profits at 117 the same day)
Warranty Mphasis Bfl – buy at cmp 704 sl x targets x – 2 days (booked full profits at 722 the same day)
Warranty Axis bank – buy at cmp 1015 sl x targets x – 2 days (booked full profits at 1050 the same day)
Warranty Neyveli lignite – buy at cmp 148 sl x targets x – 2 days (booked full profits at 152.50 the same day)
