Scary Markets...June 10, 2008

Yesterday's market was pretty scary but very entertaining for us folks who are sitting on the sidelines and watching. It was a very volatile day of trading where NIFTY swung both above and below 4500 multiple number of times. A new 2008 low was created in market. A base has formed around 4400 now. What is scary is that a number of shorts have been created even in these levels. Now if 4400 breaks on a closing basis, we can short this market for lower targets of 4000 and 3600 possibly. Our shopping list that we created last week can wait for now. We need not rush into buying and wait for clear signs from market. Today again will be an off day for us in NIFTY. We will watch the wild swings from the sidelines till we are clear. (Remember money not lost is money earned. Its very important to preserve our capital first and then make profits...so by not trading couple of days we will do ourselves a lot of good). However, we can look at the below stocks for trading.

STOCK PICKS
RPL - This stock is rallying on back of some news. It has closed above 200 DMA even in a falling market. Lots of longs created in FnO space. BUY RPL today above 172-174.8 resistance areas it can rally upto 180 levels.

NEYVELI LIGNITE - Stock is breaking down from a symmetrical traingle pattern as shown in charts. CMP - 106.4 stock is headed towards 86 levels in the coming days. This is a positional short. Intermediate support at 103 and 100.7

NAGARJUNA FERTILIZER - CMP 39.3 If closes below 38.3 today, short and carry target 35.8, 34.8, 30.9

Market is still looking very weak and bad as of now. Avoid carrying any overnight long positions for sometime.