Beginning of the end?? May 2nd

Expect 5300...However, many frontline stocks are showing weakness....advise strict CAUTION!! Do not BUY now in this market. Use rallies to exit longs. Slowly we will build shorts. We advise buying some NIFTY puts today..positional shorting should be done only around 5300 levels with a stoploss above 5400. Do not BUY at higher levels or short at lower levels.

YESBANK is still in our watch list and is in a make or break situation. Look at the yes bank chart here. Trading range is 166 - 172. Break of either side will give us a very good trading opportunity. Watch this and trade on break...long or short based on which side it breaks.

We are trying to catch an upcoming correction early today...so wait and short at highs...and keep your stoplosses intact above 5400.

Stock updates and day ahead 30 April

As said yesterday market rose sharply after RBI policy announcement. Suzlon and SBI have reached their targets and orchid did not take off. Markets continue to be in uptrend. We can expect some consolidation today. Short term targets for NIFTY are curently around 5300 - 5400 for this rally. Today's picks

RELIANCE CAPITAL - BUY above 1500 target 1555, 1600
YES BANK - BUY above 175 target 180. (Watch this stock today. Formed a traingle on charts and can give an explosive breakout)
ADLABS - BUY above 780 target 820
SCI - BUY above 241 target 249

Market and stock recommendations - 29 April

Yesterday we were spot on yet again with our strategy.

CAUTION: RBI policy meet today. Market may swing wildly up/down based on announcements being made. Trade lightly today.

SUZLON - Looks very weak. Hold for targets given yesterday
SBI - BUY above 1754 Target 1800
ORCHID CHEMICALS - BUY above 250 Target 260

Market ahead week beginning 28 April

Last week our prediction of NIFTY was perfect. Markets seem to b heading further up in May as of now. However, for this week, we advise some caution. There is an RBI monetary policy meet on the 29th of this month which could influence the market. So we will wait and watch how market reacts to RBI's policies. For monday, we could have a slight dip due to profit booking at higher levels. However, this will still be a regular correction in this new uptrend. We have a breakout on nifty charts and this breakout is likely to be sustained for sometime.

The following are important NIFTY supports - 5070, 5000. Its unlikely that we will go below these on monday. Some important stocks and their supports/resistances

CAIRN - 268, 255, 251, 246, 237. Close below 255 is very bearish for CAIRN. It has formed a double top on daily charts (bearish sign)
SBI - 1754 is laxman rekha. For monday short SBI with a stop above 1754. Target 1710, 1680
SUZLON - SELL below 284. Target 275, 268

CAUTION: Though index is looking bullish, some of the heavyweights including RIL, SBI and SAIL are looking come down. So be a little cautious in BUYING. Do not BUY at higher levels.

Today's strategy: SELL at highs and cover at dips