morning thoughts..
The markets yet again opened with a deceptive gap and remained highly volatile in the f/o expiry week.
Technically the nifty has slipped below the 200 DEMA after a couple of months and again bounced from those levels, however these bounces seems to be deceptive and any bounces or rise can meet further selling.
From past few days we have saying that below 5090 and 5020 convincing shorts can be created and the markets behaved as expected.
On technical and trading parameters the index has turned weak and now along with the indices it would be the turn of mid caps and small caps to see a steep and good correction.
But on an optimistic note and view these are good opportunities to pick up good and select mid caps with high beta value which has the potential to reverse sooner with markets.
Fundamentally there has been no change in the markets , but since it has run up too much , it is healthier , but one must notice the dollar index against the euro index which is showing a gradual increase with rising crude – which is never a healthier sign.
Coming to the bond markets , 10 year yields are at a high , with markets men moving towards a safer bet with higher volatility in the indices.
Now amongst all the pessimism the MCI index will now include some Indian stocks from coming expiry with Israel coming out of the index , so all the money is expected to come and inflow INDIA , which is always a healthy and strong sign , but that is going to happen only after the expiry.
Coming to markets , indices also stand very close to 71.8% retracement levels after breach of 61.8% , so now the markets are at a very crucial zone and has a strong potential to bounce , but again that bounce can be deceptive.
So a better strategy is to adopt a straddle strangle in nifty and all high beta stocks and continue after expiry.
On the lower side 4815 and 4750 will be strong crucial levels to be watched , below which again a steep fall to 4440 can be seen.
On the upside 4900- 5000 is a strong resistance for the markets to deal with , and would be in a range.
It will not be easy to trade ranges and trades will be trapped on both sides , so one must buy good high beta stocks.
The supports for the nifty is at 4815 levels and resistance at 4900 levels.
The supports for the sensex is at 15900 levels and resistance at 16500 levels.
Stocks to watch
Essaroil , suzlon , ge ship , petronet lng , bharti airtel looks good at panic and dips and can be bought
www.astroeyes.co.cc
Yesterday’s calls sent via sms and messenger
Petronet lng – buy at cmp 81.80 sl 81 targets 84 , went 83.90
Bajaj hind – buy at cmp 101.50 sl 100 targets 105 , went 106.50
Triveni eng – buy at cmp 95 sl 94 targets 98 , went 97.75
Nifty – sell at cmp 4952 sl 4973 targets 4910 , went 4911
Punter Essar oil – buy at cmp 121.50 sl x targets x – holding
Fii Bharti Airtel – buy at cmp 263 sl x targets x – holding
Dii Petronet Lng – buy at cmp 81 sl x targets x – holding
Jackpot Ge Ship – buy at cmp 281 sl x targets x - holding
