Short covering helps NIFTY....June 04

We had a good short covering yesterday once NIFTY bounced from the support given yesterday at 4630. Now a lot of shorts have been covered which is good for existing shorts as now fresh shorts will come as market rises. We might get news on oil price hike today as well. This is still a short at rise market and not the one for positional buying. A lot of out of the money puts have been added suggesting market could go down much lower in the times to come. Support comes at 4690 and 4630(strong one). If market shows signs of moving up do not panic, it in all likelyhood would be to shake off weak hearts from the market. 4800 will now act as a strong resistance for any upmove. Above which shorts may have a problem. As long as market stays below that level do not worry if you are short.

P.S: We booked partial shorts yesterday around 4630 levels. Holding remaining. I will add some more shorts at higher level again and hold for 4630 or below. Not posting a chart today as there is no significant change.

INTRADAY CALL
GAIL - CMP 384.7 BUY above 391 Target 405. SL - 383
RELIANCE - CMP 2406. SELL below 2397 Target 2350. SL - 2407