morning thoughts..
Well the required and the much desired bounce back came after a good over sold territory .
But amazingly the steepness of fall witnessed during the negative day and corrections in midcaps where much higher and they could not rebound to the extent they felt and many corrected more in relative strength to the nifty.
The nifty going up and the stocks going down , which indicates a weak rsi of stocks and macd in relative to the nifty , which is a cautious sign as the stocks can correct more if the index comes down.
From technical parameters we said about the bounce from 71.8% retracement levels of 15900 which was held , now these levels are of very crucial importance and requires to be held for any upmove to continue.
On the nifty front 4750 and 4675 and very crucial levels and supports on the down sides , breach of this calls for a steep fall.
Now we head into an f/o expiry with much of the rolls done and new series dew in 1 day , it would be intresting to see if the nifty manages to close above the last expiry levels or below it.
A close below the last expiry levels of 5020 will not be a good feeling and will call for shorts at higher levels and bounces.
Amidst the volatility and pessimism it is a stock pickers markets and the out performance of individual stocks will continue , where one can make good money in percentage terms.
So this pessimism is a blessing in disguise and a stock picking opportunity.
However seeing globally the problem persists and apart from European crisis , the main worries are from china where the melt down looks deep which will affect the metal sector, now china has run up to fast in terms of growth , economy and gdp which is not reflecting in their indices and the huge real estate prices on a premium with falling indices calls for a bubble in china real estate prices.
So keeping everything in view volatility will persist and give good opportunities.
Yesterday’s calls sent via sms and messenger
Nifty – buy at cmp 4861 sl 4843 targets 4910 , went 4925
Gail – buy at cmp 449 sl 447 targets 454 , went 454.50
Sail – buy at cmp 194 sl 192 targets 198 , went 199.85
Sail 200 ca – buy at cmp 1 sl .75 targets 2.20 , went 2.75
Mondays Punter Essar oil – booked full profits at 124 , long from 121.50
Monday’s Fii Bharti airtel – booked full profits at 270 , long from 263
Monday’s Dii Petronet Lng – booked full profits at 84 , long from 81
Monday’s Jackpot Ge ship – booked full profits at 289 , long from 281
