June series begins....May 30 2008

It was not a great day for me yesterday. My longs got hammered towards the end. However the important thing to note is that NIFTY didnt hit my stoploss which was slightly below 4800. For so many days I have been waiting for 4800 and finally it came (4801 was day low) one day late when I had almost given up. I am happy I was so right in my prediction. As soon as I saw bounce at 4800 I averaged some longs and now my buy price is close to 4800 with stop just below 4800 (this is a risky trade). The shorts that were kept as hedge were very profitable though. Today all longs will be exited for sure and I will add more shorts with very small hedges. Look at the NIFTY chart to see how nicely NIFTY has taken support at 4800. It can't get better than this :-). We will have the pullback today with a maximum target of 5020. However my advise would be not to wait for this target and book all longs at each rise.(maybe around 4900+ itself). Shorts should be added towards close of trading today. Remember next week we might see 4500 in NIFTY so do not forget to short and carry today.

INTRADAY PICKS FOR MAY 30
RCOM - CMP 571 BUY around 571 target 575, 583 SL - 568
NAGARJUNA FERTILIZER - CMP 48.7. Huge resistances at 50.6, 51.6. If these are crossed go long else keep these are stop loss and SHORT.


We will try to concentrate on NIFTY now for today and next week as individual stocks can sometimes outperform the market.