morning thoughts..

As said and expected the markets bounced like a rubber and saw a triple digit rally in the indices trapping all shorts in the due course.
Technically the markets have moved into a stretched zone , so an immediate reaction near to 5000 is not ruled out , also there are still some shorts in the system which will keep the markets volatile and choppy in the vicinity of 4925 – 5000 zones of the nifty front.
Those who followed our strategy of buy on dips in panic have been rewarded handsomely in out of money call options in both stocks and indices.
On technical parameters markets will consolidate and follow global cues and might show two side movements in the coming session , one must not try to create huge shorts as markets are still in pull back zone and may give a bounce again from lower levels after a small reaction from higher zones.
From a trading point of view I would watch the resistance levels of 5050 on the higher side and support levels near to 4890 levels.
Keep this in mind the markets are likely to provide trading opportunities of both long and short side.
The supports for the nifty is at 4925 levels and resistance at 5025 levels.
The supports for the sensex is at 16050 levels and resistance at 16800 levels.


Yesterday’s calls sent via sms and messenger

Idfc – sell at cmp 114 sl 115.50 targets 110 , went 109.80

Hero Moto corp – buy at cmp 2055 sl 2045 targets 2100 , hit sl

Mahindra & Mahindra – buy at cmp 720 sl 715 targets 740 , went 747

Advance Nifty – booked full profits at 5005 , long from 4711

Itc 200 ca – booked profits at 7.90 , long from 4

Icici bank 720 ca – booked profits at 50 , long from 35

Nifty 4800 ce – booked profits at 257 , long from 124

Operator Call Icici bank – booked profits at 775 , long from 726

Fii Ranbaxy – booked profits at 452 , long from 427

Jackpot Abg Shipyard – booked profits at 415 , long from 398