Daily market view...June 13, 2008

As said in these columns few days earlier, the short rally up, is in progress. NIFTY managed to break the barrier at 4540. Now 4600/4700 is probable. I did advise people in my yahoo messenger list to buy calls towards close yesterday. In spite of so many negative cues yesterday markets managed to bounce bank thanks to hammers and morning star on charts. Its a testimony to the fact that technicals work very well. However, please note that the broader trend is still down and all these rallies are relief rallies that will sustain only for a few days. We have an engulfing bull pattern on NIFTY future charts today which is yet another confirmation for a relief rally. So for this brief period stay long hedged with puts. All important levels are posted in the uploaded chart.

STOCKS
RPL - Once again this is part of our success story. Once 174 was crossed, as indicated here(check earlier posts) it went upto 180 straight. Next resistances are at 187 and 192. It has moved up with decent volumes and will continue to rock in this rally.

BANK OF INDIA(BOI) - CMP 269.15. BUY targets 275, 283. SL - 252 (This one's pretty deep)

BOMBAY DYEING - CMP 746.95 BUY targets 755, 795. SL - 738

CHAMBAL FERTILIZER - CMP 83.2 BUY above 84.25. Targets - 85, 87.4

Watch out for Inflation numbers today...