morning thoughts..

The markets opened gap down after dow zones flauters due to technical snag and broke below the 5000 mark and traded below the 200 day moving average .
However the markets managed to take supports right at the 200 DEMA and bounced to trade above 5030 levels , where again fresh shorts were seen .
Over all the picture remained quite choppy , volatile and jittery.
Technically the markets are on the verge of technical support and if it has to bounce it must bounce from this levels .
So on the downside we must assume that 4950 is a major support for the indices on the nifty front , below which the indices turns weaker and opens gates for 4900- 4820on the lower sides.
On the upside as long as the markets manage to trade above 4950 levels , it has the potential to bounce , but one must keep in mind that as the markets inches up or goes up , there is a viable and true possibility of fresh shorts and selling pressure which can again take the markets to lower levels.
So one must be cautious on both sides and try to trade range by buying dips and selling rallies.
Now on the upside stiff resistance will be witnessed at 5075 – 5125 levels , a successful crossover and sustainable trading above it will negate all downside views.
After a good correction past week , the indices now needs time to consolidate and create base before it decides to make a further move.
Many mid caps and momentum stocks has seen stiff correction from their recent highs and now have come to an attractive level , so one must now concentrate on hand picking them with a short – medium term point of view.
On the indices front one must not be too aggressive on creating shorts on the lower sides as the markets rest on supports.
In our last weeks astro synopsis we had clearly mentioned that Mars being direct will keep the markets under pressure and negative vibes will be felt until 11th may –well the markets has given a perfect obligation.
After 11th may when Mars turns retrograde – a positive feeling with some buying would emerge.
We had also said that below 5090 convincing shorts can be created and below 5060 the pressure would increase , a perfect analysis at work yet again.
Now from a trading point of view , one must keep in mind the levels mentioned and try to buy dips closer to 4960 levels with a stoploss below 4950 and exit if these levels are breached.
One will need to be quick enough in their actions or would call for a trap
The supports for the nifty is at 4950 levels and resistance at 5050 levels.
The supports for the sensex is at 16200 levels and resistance at 17500 levels.



Friday’s calls sent via sms and messenger

Ivrcl infra – buy at cmp 159 sl 157.50 targets 163 , went 166

Indusind bank – buy at cmp 185 sl 183 targets 188.50 , went 187.65

Tisco 560 ca – buy at cmp 25 sl 23 targets 30 , went 28.30

Nifty – buy at cmp 5015 sl x targets x – holding

Billionaire Drum Engineers India – buy at cmp 469 sl x targets x – booked full profits at 493