Nifty held yesterdays low and gave a sharp bounce back from the lower levels of 4800. It is expected to face some resistance close to 4950 levels and a good breakout above these levels with decent volume can be considered as a short term reversal on the upside.Dollar/ Inr gave some relief for nifty as it came down after making one more high. The question would be a strong rally like this would be met with high demand on any dips and why should not we expect dollar to continue the same ?. Thus the view still remains 4500 in June series and market can punish me anytime with its sharp upside move and i would be ready to accept that. If we see the world market charts let it be dollar index, U S markets or copper it gives me a dirty picture of a clear slowdown. I wish the markets would correct me and make it a better place for bulls but as of now there is no change in the opinion.I did mention about some stocks in the previous weeks post like Ranbaxy, Hexaware (on the long side 23rd May post) and Ambuja cement , TITAN (exit calls for investors). Though Ambuja and TITAN are still trading flat both the long side calls could give a decent return of close to 10% return within 2 days. One interesting stock for investment (give it a try , the stop is just 10-15 points away) would be Indusind bank. The stock has a decent support at 290 levels and it is bouncing back from the same level for quite a number of times.The stop is close by and ie; below 290 , the moves may be slow but it is a consistent performer. If there is no slow down (as i expect) the stock could give handsome returns in the longer term.
Watch out for Saturday's post and i would explain in detail why i expect Dollar / Inr at 60 in 2013. It might just be a view as i would be one among the few who gives a wild target like this. I dont wish to be correct this time but the charts say so...
