morning thoughts..

The markets yet again reacted exactly from our resistance zones on back of profit booking.
Technically, the index needs to cross and stay above 4968 - 4983 range today to signal continuation of the upswing. If it fails to do so, we might see some profit taking. If there were to be such selling in the market we should be monitoring the level of 4937—the Nifty should not go down below this level, at least on closing price basis. The levels between 4904 and 4898—roughly the levels around the 4900-mark—would now offer strong support in any sell-off.
The markets looks a bit heavy at 5000 levels on nifty from and will yet again find itself hesistant and reluctant to cross those levels and a mere mild reaction with a rise is not ruled out.
We have been advising and intimating buying base metals and commodities at every dips as all were ripe for a bounce , last day saw a magnificent bounce in all the base metals , copper , gold , silver , nickel , mentha oil.
We have been bearish on crude from a couple of days on back of strong rupee and crude saw a good downside yesterday.
Coming to the equity markets another heartening feature is the movement of the CNX Defty, the dollar denominated Nifty: yesterday, it has moved up by 3.25%. Such moves happen when FIIs start buying in the market in a big way after bringing in fresh foreign currency. This particular segment among the market participants is the most important since it is the FIIs who drive the market; once they come in for sustained buying campaign our market—if not most markets in the world—witness bull markets.
Any sharp downside and fall may find buying interest and cushion in the vicinity of 4900 zones and markets may bounce back.
So from a trading point of view one can create shorts on rise to 5000 levels on nifty and create longs on dips to 4900 levels, one can also look to buy out of money call options in indices and stocks in dips.
The supports for the nifty is at 4900 levels and resistance at 5025 levels.
The supports for the sensex is at 16050 levels and resistance at 16650 levels.



Yesterday’s calls sent via sms and messenger

Nifty 5000 ce – booked profits at 41 , long from 23

Lic 250 ca – booked profits at 8 , long from 5

Hindalco 140 ca – booked profits at 4.10 , long from 1.50

Btst Idfc – booked profits at 118 , long from 113

Stbt Ranbaxy – booked profits at 460 , short from 470

Operator Maruti – booked profits at 1095 , long from 990

Fii Mahindra and Mahindra Fin Services – booked profits at 684 , long from 610

Jackpot Thermax – booked profits at 483 , long from 466

Copper Mcx – booked profits at 423 , long from 415

Silver Mcx – booked profits at 53050 , long from 52155

Gold Mcx – booked profits at 27725 , long from 27537

Mentha oil – hit sl at 1500 , long from 1515

Crude Mcx – booked profits at 5095 , short from 5130

Nickel Mcx – booked profits at 990 , short from 1010