Is it time to buy??...June 06

NIFTY has almost hit all downside targets. All shorts have been exited now and I have no open positions. There was very good short covering once NIFTY hit the support at 4530 given in the post yesterday. The attached chart shows how NIFTY is obeying exactly to the lines we have drawn.(NIFTY levels are also updated in the chart). However, this doesnt seem to be fresh buying yet and only short covering as suggested by open interest change. So we will wait some more time to enter into this market to ensure that this isnt a dead cat bounce. Today inflation numbers will come out and could well be high enough to freak markets. Over the past few weeks, market has ignored these numbers, we will have to wait and see if this will happen today as well. Till then stay out of market. In the afternoon session, we may take up a few longs (very small positions). Do visit the blog again after 3 PM today. I shall try and update if there are some positions that can be taken. The following stocks are looking good for positional longs

1. RPL
2. Hindalco
3. Tata Steel
4. IFCI

I may pick up few calls or longs in these today or next week. NIFTY might open up today, do not buy till inflation numbers are out. Safe buying is only above 4800 (on a closing basis). If market slides below 4630 and closes below this level, better not to BUY at all and go with zero positions into next week.

INTRADAY
IFCI - CMP 61.1 BUY above 62.25 Target 64. SL - 61

P.S: All calls given as intraday, please try to enter only after 10:15. The first 15 minutes, market is usually traded very speculatively resulting in large price swings. It is highly probable that both targets and SL will be hit during this time. So enter into intraday positions after 10:15.