Thursday, June 7, 2012

Nifty update for 08-June-2012


Nifty gave a dip close to 4980 and the first dip was being bought as said in the previous post. It might head to 5100 zones but it would be clearly an exit signal than creating long positions. As I said in the previous post if there is a dip a long position is justified but otherwise if you are a buyer nifty would be expensive at 5050+ levels. It would be interesting to see how much this liquidity driven rally can make the move on the upside. Whenever there is a rally due to some extra money in the system it would be a ‘suckers rally’ to trap the traders. As of now we are in a short term uptrend and the turnover data would be the primary evidence for this. One interesting stock to be watched would be DLF as it has spend enough time in the zone of 175-190 for more than a month. I would be a buyer within this range as I would like to respect the time spend by the stock on the downside. It is yet to be seen whether it is a trading buy or a short term investment. Turnover and volatility data show some buying happening at lower levels and that could trigger some more upside. Thus let’s keep a range of 4970 – 5100 and testing the upper or lower bands would be an exit signal from the buying positions.

No comments:

Post a Comment