Hi all,
Nifty had a made an History by posting 13 Weeks of gain.Now whats goes up needs to come down an old age adage.So we should not get carried away by this rise and we should book profits at each rise for now.As of now still i am bit circumspect of this rally and believes it as a bear market rally.
Since last one week, you have already seen down moves of about 100 points and then a quick bounce back up on 3 to 4 occasions, which will make one believe, that it will bounce back once again making a new high, but very soon it will not and will catch everyone unaware. As this rally catch all of us on back foot the same will happen on the downside. Market is highly leveraged and a slight bad news flow and a break of 4451 where we have formed triple bottom can lead us to 4380 4320 levels.
It was a relatively sedate week in global equity markets.Dow and S&P are showing negative divergence on daily charts,Dow has resistance at 8000 and Hangseng has reached 38.2% Retracement of the high in 2007 to the low in oct.
Nifty Weekly
Resistance 4650 4720 4770
Supports 4551 4484 4430
Stock Specific:
Unitech Looks quiet overbought on daily and weekly charts Can be shorted till 105-108 Sl 111
tgt of 99 93 89
United phosphorus buy at 166 sl 158 tgt 175
Hindalco buy above 94.5 for a tgt of 96 98 Intra day call and buy this stock in correction also
Infosys Technology has moaved after 4 weeks of congestion from 1490-1620 can be bought around 1670-1700 for a tgt of 1800
BPCL buy around cmp for a tgt of 500 sl 452 Crude will cool of in coming session which will be beneficial for the stock.
Option call buy 4500 put around 110-120 for a 30-50% upside and if nifty crosses 4650 buy 4800 CE
Regards,
Bramesh
Nifty Range for the month of september is likely between 5350 and 5600 with few points here and there. there is lot of option writing done in 5300 Put and 5600 Call. So one can consider buying in index near 5350 and can book profit near 5600 and can make fresh shorts from there. Best wishes Happy investing.