Kirloskar Electric is trending up nicely and trading firm above 230 levels. Keep an eye on this stock as this stock has the potential to rocket in a short time.
Indiabulls real estate looks set for higher levels once it crosses 500. keep an eye on this stock.
Orbit Corporation also has bright chances of scaling its earlier highs of 550.
DLF faces resistance around 615 levels. Above this level this stock too can zoom.
Looks like NIFTY might scale the earlier high of 4650 and may be move up even more. And as before, the leaders like RIL, SBI and capital goods stocks might power it.This might be a good time to go long on NIFTY with tight stop losses.In case NIFTY reverses sharply from this point, once can expect to see the 4000 levels again.From a risk reward perspective, this is a good entry point.
Watch ABB above 1160 levels. This old favourite can make a move again to 1300 levels in next 2-3 weeks. Good for a nice swing trade.BHEL and L&T are again looking poised to make 10-20% moves in coming weeks.
Our three musketeers have been clear winners.
NIFTY is on a roll again and the 4350 and 4400 were reached easily.Next stop looks like 4530. Above 4530, it might try to break new highs and go beyond 4650 levels again. This might be a good time to add some strong uptrending stocks in your portfolio.
Read this interesting story of how one trader/fund has placed a $1 billion bet on a possible market crash by September.
Markets have this knack of turning bullish in my absence!!So my absence is good for all you “long only” guys. Actually, I had to make an urgent travel for couple of days,so couldn’t post for the past few days.
Markets cruised through the 4250 levels with relative ease on Monday. Next resistances are 4350 and 4400. The derivatives expiry on Thursday can take the market to these levels. On the downside 4250 might act as some sort of support.This week’s closing is very important.Also intra day volatility is important.I won’t feel comfortable going long in an aggressive manner till it subsides.
Some of our old favourites are again poised to make an upmove. The list is long- BHEL, L&T,RIL,RelCap ,Kotak Bank, KVB, SBI etc.In mid caps keep an eye on Crompton Greaves. The time might be ripe for big moves in these stocks.
Some of the countertrend ideas like Tata Motors and Wipro have worked well for us .So this time I would recommend Infosys in this category. The stock seems to have bottomed out and 1720 seems to be a bottom in medium term. The stock might bounce to 2050 levels.
If you want to play short to hedge, then IDFC remains a good bet as the stock has strong resistance in the 120-121 level.
I shall be able to continue with regular postings after Thursday.
NIFTY’s movements are showing some similarity between the Feb-March 2007 period when NIFTY corrected from 4230 levels to 3550 levels. Although every movement in NIFTY is different from that in the past, it might not be a bad idea to notice a few similarities. If NIFTY breaks 4000 levels, then this correction might look more like May 2006 correction.
Have a look at the latest NIFTY chart.
Steel stocks had fallen lot a during this corrections. This is one of the most volatile sectors.Lets have a look at their current trend.
SAIL- SAIL fell from an all time high of 167 to 135 and is currently trading at 146. The stock has good supports in the 135 region.The stock might try to resume its uptrend next week.First hurdle is at 155 levels and beyond that it might attempt to break 167. On the lower side if 135 gets broken, 125 looks likely.
TATA STEEL- Tata Steel fell from an all time high of 732 to 527 and is currently trading at 583. The stock has good supports in the 515-530 region.The stock is no longer in an uptrend and might move sideways with a downward bias.First hurdle is at 600 levels and beyond that it might attempt to break 650. It might turn bullish again only after it crosses 650On the lower side if 515 gets broken, 470 looks likely.
JSW STEEL- JSW Steel fell from an all time high of 772 to 501 and is currently trading at 572. The stock has good supports in the 500 region.The stock is no longer in an uptrend and might move sideways with a downward bias.First hurdle is at 600 levels and beyond that it might attempt to break 650. It might turn bullish again only after it crosses 650.On the lower side if 500 gets broken, 450 looks likely.
NIFTY is trying settle down between a 4100 to 4250 range. Although things have not stabilized as of now but some buying is emerging in the 4100 zone. Individual stocks are still too volatile and are not finding any direction. Upward movement is finding lots of selling pressures. If you are a long term buyer, your buying opportunities might come soon. For short term directional traders, life is still difficult.
Stocks like Reliance have a good base in the 1670-1750 range. So it might look attractive to long term buyers. RPL is holding its 105 support levels.Kotak Mahindra Bank is trying to stay above its support levels of 600-620.
Still early days to draw a conclusion.
Last two days have witnessed fierce fighting between the bull and the bears. If yesterday belonged to the bulls, the bears took back the game today. Faint hearted souls would have dropped dead witnessing this bloody fight!If you are watching this fight from outside, you can still try to enjoy it but if you are part of this fight then you might be badly injured.
The NIFTY indeed made a dash to 4250 today(as we were saying yesterday) and lots of people thought that the ‘correction is over”.NIFTY faces stiff resistance in 4250 zone. Smart guys took their profits around those levels but a lot of “gullible” traders were caught on the wrong foot when NIFTY closed at 4114!
Do not be in a hurry to “jump in”. If this market has to go up, it will give you ample time or jump in when you see the whole market is selling in “panic”. Otherwise let this market find its feet and make up its mind!It might not be a prudent strategy to make “blind” moves.
If you want to catch the bottom, take 4000-4050 as your reference point. This market might try to retest those levels again. You can make some purchases in those regions considering your risk appetite. If 4000 gets broken, then 3600-3800 might come quickly!
In these market conditions,you might be rewarded more for your “patience” than your bravery.
Lets look at some of the reality stocks and how they are doing.
DLF- The stock reached a high of 679 before falling back to 557 .The stock had some support in the 565-570 region which it has broken. Till the stock gets past the 600 levels, it might stay in a bearish/sideways trend. Support exist for the stock in 530 region.
UNITECH- The stock reached a high of 623 before falling back to 458 .The stock had some support in the 480 region which it has broken. Till the stock gets past the 620 levels, it might stay in a bearish/sideways trend. Support exist for the stock in 530 region. There is a likelihood of the stock slipping to 400 levels in case markets remain weak.
AKRUTI NIRMAN- The stock had some support in the 450 region below which the stock can slip to 410 and 350 levels. Till the stock gets past the 550 levels, it might stay in a sideways trend.
ORBIT- The stock had some support in the 330-350 region below which the stock can slip to 300 levels. The stock is little too volatile and might provide good entry points around support levels for countertrend trading.
SOBHA- The stock looks bearish and looks set to break its supports of 720 below which it can see 620 levels which is all time low for the stock. One can look for a slight bounce around 720 levels-nothing more than that. An ideal short below 720.
PARSVNATH- The stock looks bearish and looks likely to retest 230-250 levels which might provide some support.
HDIL- The stock looks bearish and is finding some support in the 480 region. Below 480, the stock can be a good short idea.550 is the upward resistance.
INDIABULLS REAL ESTATE- The stock might turn bearish once it breaks 400 levels. the stock might move up again once it crosses 500 levels. Till then one can expect a sideways movement between 400 to 500.
PENINSULA LAND- The stock is trying to cling to 380-400 support levels. It might bounce from here. If it doesn’t, it can get down to 320 levels.
OMAXE- The stock is the bearish of them all as it is already trading at new lifetime lows. Use every bounce to short this. Resistance occurs in the 320-330 range.
BUSINESS NEWS INTERNATIONAL NEWS AMUSING STUFF
COMMENTS