Markets Largely Caught in Range-Bound Activity

Hello Readers

The Nifty has shown a range bound momentum for past 3-4 trading session.

Source:- NSE India

The Nifty has caught between range of 6020 and 5980. To initiate fresh long or short postions we have wait to see the trend of the Nifty. As there not much of movemnt in the Nifty we expect the worts would be over there could be some short position bulit in market so you can see some pressure on Nifty around 5900 levels.

The Levels to be watched are :-
1. If Nifty has to move upside it has to cross decisively the level of 6020 and close above 6050 levels then we can conform an imediate uptrend that could take market to 6100-6200 levels.
2. If Nifty has to move down side main support is 5980 to 5880 if these range is breached then you can see a shrap fall of 200 points on Nifty.

As  the Nifty is showing sings of uncertainty the best thing to do on Nifty is to stay away form Nifty.

  

"Investor Focus On Business Performance; Speculator Focus On Price Performance"

Happy Investing

Thanks & Regrads

Dev Purohit

Hello Readers,
After a choppy NIFTY last week, it seems as if markets will remain range bound (5800-6200).
I don't expect much volatility in NIFTY till jan first week as even FII's will be buzy celebrating this Christmas season. Expect moderate capital inflow by FII's.


Stock to look out for on Monday :

HeroHonda

• Expect action in this counter on monday as the price at which the Hero will buy 26% stake from Honda is still not disclosed and so as valuations are a concern
• Even the royalty paid for using goodwill of Honda is expected to be reduced from Jan-11

Ispat

• Company is making severe losses past two quarters and is under Rs. 6300Cr debt
• Lenders are going for stake sale which is pleged by the promoters of the company
• Companies interested in buying stake are major stell companies like JSW Steel, TATA Steel, ArcelorMittal, Jindal Steel
• I personally feel that SAIL will take over the company in near future

Derivatives :
Sell Nifty 6300 call of December expiry


Regards,
Ankit Rambhia

Nifty in Downward Trend

Hello Readers

Today Nifty has broken the important support of 5850 and has seen a sharp fall to 5760 levels. These could see further down side till 5600 as there no support for the Nifty till 5600 levels it could seen the free fall.It took support at 5750 and shown some bounce back on intra day chart.



Nifty has closed below 200 Moving Average that indicates more weakness in the market.
Short term trend show the weakness in charts.Bollinger Band has also open down side which further gives the confirmation for weakness.

My view on Nifty will to be short on Nifty for 5600 levels and cover the short by taking a call of 5800 where by that will protect form short covering.

Short position are build in open market so you can see some bounce back for short to be covered.

Stocks which look good in these market are :-
1. Pipavav Shipyard Ltd.
2. Jubilant Foodworks Ltd.
3. DLF Ltd.

If the strategy which recommended by me on 1st Dec 2010 when Nifty was at 6000 currently 5760 . Nifty has seen 240 points form the last recommendation on Nifty.

Thanks & Regards

Dev Purohit

Short Covering Leads the Market!! Nifty 100pts up!!

Hello Readers !

Market moves up due to short covering in market lead by major indies.
Nifty strategy in current market would be bullish as we have seen smart recovery in Nifty closing above 100 points . Close all the short position.
Nifty will seems bullish if it closes above 6020 levels fresh long could be initiated in the Nifty. You can make the Long Straddle to maximize the gains. Nifty has shows the short term uptrend . Nifty has to remain above the 5850 levels to continue the uptrend .Market could remain range bound 5800 to 6100.



Top Picks For 2nd Dec 2010

1. VIP Industries Ltd.
Buy at 640 SL @ 635 TGT 660

2. BEL
Positional Buy above 1730 SL 1680 TGT 1820

3. IndusInd Bank Ltd
Buy at 300 levels SL 298 TGT 310/ 340

Thanks to Krishna Loya for sharing comments on market.

Previous Recommendations Result

1. J P Associates given @ 102 currently at @ 115

2. Suzlon Energy @ 44 currently @ 51

3. Cain India @ 290 currently @ 320

4. Pipava Shipyards @ 70 currently @ 77

More than 10 % returns in 2 days !

Thanks & Regrads

Dev Purohit

29th NOV 2010

Hello Readers !!

Today Nifty showed good recovery form the low level and up move sustained towards closing of the market.
In these market you can adopt strategy sell on rise and hedge nifty between 5700 to 5900 levels , As a Trader be Short on Nifty till close above 5900 level .
You can have Strategy such as sell nifty at current levels for tgt of 5800 -5750 levels and hedge it with call of 5900 NOV futures that will be best bet in the market.

For Investor i can say it is a discount sale which is available in Nifty so be Bullish on Market and Buy on Dips !!

Investment Ideas for Month :-
1. J P associates @ 104 for tgt of 140 as it has had betting with no fundamental changes so bullish on it.

2. Suzlon @ 44 levels for short term tgt of 52-55

3. Pipava Shipyards @ 70 for Tgt of 85

4. Cain India @ 292 for Tgt of 350

Many more to come !!!

Thanks & Regards

Dev Purohit

Selling Pressure

27 November 2010
When Nifty Broken Important Support Of 5930, that Time I Predict That Nifty Comes 5700-5720 And On 26 November 2010 Nifty Once Trade Below 5700 Level, Closing Below 5800 Is Still Indicate Negativity On Market, Once Nifty Cross & Close Above 5815 Levels Then Nifty Can Touch Upper Target Of 5930 In Coming Week, And Close Above 5930 Can Bring Bulls Back In Indian Market Once Again, Nifty Fall On Some Scams & Bribery Case & OfCourse On Korea War News.

Technically Close Below 5800-5820 For Two Consecutive Session In Nifty Then Nifty Can Slide Till 5450-5500 In Very NearTerm,
But Some Big Bulls & Punters Of Market Says Correction Is Near By Over & They Start Buying At 5700 Levels On Friday & Once They Successfully Bring Nifty At 5820 Level Also, As Per Bulls & Punters News They Again Says That Nifty 6200+ Level In Max. Couple Of Months.

Thanks & Regards

Dev Purohit

Market Looks Strong !!

The Nifty has shown the support around 5900 levels and give bounce back to 6300 levels.
I expect nifty to move further and make new all time high around 6400-6500 levels .
Strength will be provided by Oil and gas sector and Realty look much better at these valuation.
My pick for month will be
1. DLF for TGT of 390-400 as result will be out these week ,
we expect profit of 450 cr v/s 412 crs QoQ basis.

2. Reliance also look attractive at these Valuation discounting the revenue base and improvement in the cure price will make gross refinery margin attractive , near to year end curd can touch 100 $ level.
Gas discovery and other business make it best buy
RIL with TGT 1400 .

Regards
Dev Purohit