Nifty update for 22 Feb 2012
Nifty futures failed to sustain above our upper range of 5625 and we saw a day with lot of volatility coming into the system. The Volatility Index saw an unusual increase of 8% with a good open interest and reduction in the premium it is an indication of short positions in the market. As a normal trader there is no need to consider buying put options as our previous swing low of 5560 is not taken out till now. Thus one could trail the stop loss to 5560 levels in nifty futures. The volumes of equity markets were higher revealing a higher participation from the retail front. Reliance has again given a break out above 830 levels but sustainability above these levels is a matter of concern as it is famous for giving break outs at the wrong time. If it could sustain above these levels of 860 could be seen. The upward momentum that is happening in dollar and crude oil should be considered on a serious note as these could affect the current uptrend in a bad way. As of now nifty is still maintaining its momentum and it did not take out any swing lows and we did not even have a small correction and secondary rally. Thus there would still be some time for a major top. From the stocks front A2Z mes is showing a bottoming out pattern and seems to be in a mood for a rally above today’s high of 143-144 levels. I would like to buy in small quantities and 125-140 would be a good price band as a short term investment.Let's keep the Nifty range as 5490-5625
SIR,can u please tell target for biocon.
ReplyDeleteAs a short term investment i would like to hold it till 325-330.It can be a slow mover but could deliver a decent performance
ReplyDeleteFrom a trading perspective have a look into Bharti Airtel (above 360) but for fresh investments this is not the right time...if you want to add any fresh investment positions in high beta stocks it is better to wait for a correction..will update you through the blog
ReplyDeleteSIR,can one buy aditya birla.
ReplyDeleteIf you mean Aditya Birla Nuvo ..it is a clear no....Nifty could not sustain above our upside cap of 5625 and it took out the previous swing low of 5560. Thus it might attempt for a secondary rally towards 5560-5600 but keep your trades for a shorter duration and let it be in some smaller stocks ..otherwise one can get trapped..
ReplyDeletesir,you think nifty can go down below 5440.Which stock is best to accumalatefor trading.GMDC is looking good.can one buy.
ReplyDeleteWould not be surprised if it touches 5330-5350 levels too ..But any correction is a normal bull market correction and 90% of the stocks i write in the blog would be for short term investment and i'll update about those stocks in the weekly post
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