Friday, August 8, 2008

Fall before the rise..aug 08, 2008


There is not much change in view since last post. Market still looks good for around 4800. But before that what we are witnessing is a small pullback rally. I have marked the 0.382 retracement on charts. As long as this is held use these dips to build positional longs and would recommend short on rise for intraday today till around 4440 levels.

Adlabs (CMP 550) as posted previously has given a nice breakout now and is looking at 580 to 600 levels in this rally.

Wednesday, August 6, 2008

Nice breakout on charts...Aug 06, 2008


We had a superb breakout yesterday. All of a sudden there is good news everywhere. We have very good global cues, crude is also cooling off. Technically, we broke out from the longterm down trendline. The next major resistance is the 200 DMA near 4800. Whether we will break this is something too early to predict. For now, ride with the trend, stay long and target 200 DMA. For people without charts and moving average information, I found this site, which gives moving average information for various stocks an indices.

http://stockmarketmessages.com/dma/dmaindex.htm

Stock Picks
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Bank of India (BOI)- CMP-307.75 Stock has nicely broken down yesterday and closed high. We can see good upside of upto 330+ in the coming days. This is a positional long.

Adlabs - CMP 537.5. BUY above 539. Target 553, 582

Tuesday, August 5, 2008

Critical period now...Aug 05, 2008

After a longtime am resuming my updates. NIFTY is in a very crucial zone now. It is near the long term reverse trendline from 6000 levels. (I am unable to upload charts today. For some reason, blogger is throwing errors when I try to upload it). Any break above 4440 will be very bullish. But market seems to be struggling now. The momentum is still sideways keeping us guessing whether it will break up or down. If it does not cross 4440 quickly and breaks down, the possibility of testing 3600 remains high. I have already picked up a 3800 put at 20 rs. If market breaks down, this should yield good returns. Else, I will simply use it to hedge my longs. But trust me its worth the risk and would recommend a similar strategy to others as well.