Well the markets behaved in exactly the same pattern as we predicted and our strategy worked like a dot on target.
We have been saying that the market would provide trading opportunities on both sides and the strategy remains to sell on rises near to resistance levels of 6100 and buy near to support levels of 6000.
The markets behaved in exactly the same pattern and bouncing from levels of 6000.
However the markets witnessed a strong selling pressure and volatility ahead of f/o expiry and saw nifty testing our support levels of 5990 and again showing a bounce, exactly from our ist major supports – perfect analysis at work
Now the question remains whether nifty will test our major support levels of 5950 or not , the answer remains a probable yes and nifty has the probability of testing 5950 and consolidating in that range before it decides its next course of movement.
So it can be assumed that nifty is likely to remain in a range of 5900-6100 for a couple of days.
In any case if the nifty comes to levels of 5950-5925 levels it would provide good opportunity to create longs on index front , whereas stock specific activity will continue amidst this volatility.
Now the nation awaits a major decision , with f/o expiry – the day is likely to be hugely volatile , choppy and disturbing , so one needs to be light and cautious for the day.
From a trading point of view , I would keep a close watch on my support levels and trade intraday volatility and follow strict stoplosses , however one must keep in view that reactions will be strong and fast hence hitting stoplosses on both sides and cutting off trades.
So only professional traders must attempt to trade volatility , rest can keep a watch for the day – its not necessary to trade every day.
Looking at intraday chart of nifty – I find a cluster and broken arrow pattern at around 6075 levels –which indicates a supply zone for nifty in short term.
Intraday and weekly charts of CNX IT , banking index are not following the nifty pattern , but are showing sure signs of weakness and tiredness , metal index – in comparison to global commodities are forming a double top whereas oil and gas index which was the strongest in past few weeks have also formed a broken arrow pattern.
However any correction in this indices will provide an opportunity to create longs in stocks of this sectors.
The supports for the nifty is at 5950 levels and resistance at 6075 levels.
The supports for the sensex is at 19650 levels and resistance at 20200 levels.
Stocks to watch
Triveni eng , lupin , ongc , ttk prestige , emkay shares looks good for the day
Yes bank , pnb , tisco looks weak for the day
Dabur , gdl , unitech looks good for a short term point of view
www.astroeyes.co.cc
Yesterday’s calls sent via yahoo messenger ( sms is on temporary ban by government)
Nifty – sell at cmp 6046 sl 6061 targets 6005 , went 5990.10
Nifty 6000 pe – buy at cmp 9 sl 2 targets 28 , went 28.60
Triveni eng – buy at cmp 119.50 sl 118 targets 124 , went 123.20
Sail – buy at cmp 206.50 sl 205 targets 211 , hit sl
Dlf 380 ca – buy at cmp 6.50 sl 6 targets 9 , hit sl
Friday’s Billonaire Drum Federal bank – booked full profits at 394 , long from 372
Friday’s Billionaire Drum South Indian Bank – booked full profits at 25 , long from 22.30
Friday’s Platinum Punter Hul – booked full profits at 319 , long from 309
Friday’s Golden Fii Punj lyod – hit stoploss at 129 , long from 133
Friday’s Silver Gmdc – booked full profits at 139 , long from 136
Friday’s Jackpot Itc – hit stoploss at 176 , long from 180
Friday’s Btst Pnb gilts – booked full profits at 40 , long from 31
Friday’s Stbt Fintech – booked full profits at 1200 , short from 1325
