The week that was.

What a week it was with the Nifty Futures down 137 pts on Monday 30.03.2009 at 2988 & showed enough strength to close the week at 3223 up 235 points on Thursday 02.04.2009. There could be a minor correction on profit taking which could drag the Nifty down to 3179/3129 or max upto 3065 level (unless globally there is no bad news over the weekend) which should be used as an opportunity to go long & not short at this level with a strict stop loss at 2985 level. The next target for Nifty is 3258 & then 3329 level. Stocks for the week. One could look at going long on Bharti only if it manages to cross 650/655 zone & close at that level, the immediate target is 677, if it closes above 677 then one can further add on to ones long position for a near term target of 720. ICICI is for the brave heart, this stock looks weak on the charts. I would avoid going long on this stock and would ideally short this stock with a strict stop loss of 380/385 level for an immediate target of 345 and then 325. Reliance Infra looks good on the charts & if it manages to stay above the 585 level one could go long with an immediate target of 670. Tisco: One could buy this stock in case of minor correction, this stock could go upto 265/270 levels.

March 24, 2009.

Jai Ho.
The way the NIFTY rallied yesterday would have given A R Rahman a run for his Oscar. All our recommended calls, namely, Reliance Industries, Infosys, HDFC Ld, achieved their respective targets. If you are holding on long since yesterday, my recommendation would be to hold onto your long position, with a fixed stop loss of 2 per cent from yesterday's closing price.

Market Strategy for Today, March 23, 2009

The Nifty Futures is expected to open strongly on the back of strong Asian markets and positive news expectation from the US markets (Tim Geithner). If the NIFTY opens gap up, one can go long with a fixed stop loss of 2795. The Nifty may face resistance at 2840 and 2865 levels. If it manages to break these levels and close above it, then one carry on the long position overnight.

In case of negative news from the US markets tonight, then one could see a sell off.

The first target I see for NIFTY is 2879. If it manages to stay above this level in this week, then there is a strong likelihood that NIFTY could go and kiss the 3000 level.

Stocks for today:
HDFC Ltd CMP 1412. One can go long with an intermediate target of 1459 and if it closes above this level, then the next target could be 1500 plus. Stop loss should be strictly maintained below 1378.

For those who have been reading this fledgeling blog, the previous calls I had given on Friday, March 20, 2009, with regards to Reliance Industries and Infosys, I still maintain them.

Friday, March 20th, 2009

The Nifty Futures seems to be struggling between 2840 on the higher side and 2757 on the lower side. There seems to be an aggressive battle between the bulls and the bears trying to take the Nifty in either direction. Yesterday's activity saw Nifty going down with lower volumes indicating lesser conviction on the downside.

Today's strategy should ideally be wait and watch. And as already mentioned, if the Nifty manages to stay above 2830 and close at that level, then a new short term bullish trend seems to be possible. Similarly, if the NIFTY breaks below 2755, one can go short with a fixed stop loss of 2805.

Today's call:
Buy Infosys at CMP 1298 Stop loss 1275 Price Target 1340.
Buy RIL at CMP 1346 Stop Loss 1310 Price Target 1410

Sell L&T at CMP 610 Stop loss 632 Price Target 550

Disclaimer: These are my recommendations based on technical analysis.

Today's market predictions (Thursday, March 19, 2009)

If the NIFTY (futures) goes above 2830 and sustains, then it is a good buying opportunity and one can look for a gain of between 75 to 100 points on NIFTY Futures.
If it closes below 2750, then the existing rally seems to be over and one can go short with a strict stop loss of 2810 and a price target of 2685.