Stage set for a bounce...july 01, 2008

As we start july, we start off with some positive divergence on charts indicating a short upmove. The market has been witnessing relentless selling. In the first half yesterday, the support level given in these columns held. However, in the later half it was broken and market slided to 4020 levels and managed a close around 4040. NIFTY future has already broken the psychological 4000 mark indicating more pain is left in the system. For today however, I expect a bounce possibly upto the 4100 level. 4060 - 4075 range will now act as a resistance for upmove. On the downside 4015 - 4035 level then 3920 are major supports.

STOCK PICKS
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RELIANCE - CMP: 2095.15. BUY above 2100. Target 2115, 2135, 2150. SL - 2070

NAGARJUNA FERTILIZER - CMP: 35.05. Strong support at 34.9. If it breaks this level and stays below, short it for lower targets of 32.8, 30.9. Do not short above 34.9.

Fertilizer stocks look bearish now. A lot of run up has happened in this counter over the past few days, perhaps profit booking is on..

IFCI - CMP 37.2 , BUY on dips around 36.8 with SL at 36.5 target 38.9

STOCK WATCH
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Watch this stock Neyveli Lignite, it has broken down from a symmetrical triangle but has continuously found support at 103 levels. The day it breaks 103, it will crash heavily. Keep an eye on this counter.