5/11/09 - Market cues & calls


Nifty finally closed in green after 11 stunning action showed by bears. Big boy Reliance played well yesterday made more than 5% and gave bulls a relief. Fund houses have rated Reliance a buy which made massive run in that. Banks and metals added flavor to bulls run yesterday. so will bulls action continue? lets see.

Nifty view ::

Yesterday's game cant be played as it opened flat. Many bears get trapped @ 4655 mark, so they may try to bring index to that level. Nifty formed Insider bar on EOD charts so break of 4730 will take nifty to 4786 and 4833. As mentioned on previous post MACD had reached its extreme where we need to see a technical Bounce which happened yesterday with low volume. Until we close above 4965 write calls of higher strike and buy lower strike puts.Below 4615 short index for full gain.Many asked about RIL until it close above 2071 its short @ rise. I will advice longers to use full of this short covering to exit if they trapped before. yesterday's pick jet airways went more than 65 rupees. Try to accumlate midcap banking stocks like dena bank, yes bank in these fall which we mentioned earlier too.

Levels ::

Nifty fut supp @ 4618 :: res @ 4734

Bearish > 4652 < Bullish

Stocks to watch ::

Kingfisher
Lic Housing
Unitech

Happy trading !!!!!