6/11/09 - Market cues & calls


Nifty made both ways as we said in yesterday's column. Bears took Nifty down to 4655 and 4610 to get out and Bulls broke 4730 and stalled @ 4786 which is days high.Bulls have been saved by Indian Govt finally on their divestment plan on PSU's.Banks/reliance/IT saw some massive short covering by bears. so will this run continue? lets see.

Nifty view ::

Nifty formed a inverse head & shoulder pattern on hourly charts with neckline @ 4700. for tgt of 4877. As per time analysis we neared reversal date of nov7 which is tomorrow we may see some strong bulls action from here on for 4965. weekly close above 4833 may take nifty to new high until some bad news creeps in. Until we close above 4965 option writers will use the swing to write higher level call option. I may advice investors to pick some good midcap stocks.Nifty should not break 4690 today.smart money will try to accumlate stocks from here on seeing the massive short covering yesterday. Positional longers can have Stop @ 4690 and buy @ dips for 4965 tgt. Today opening abv 4833 is a strong bull trigger which is second target mentioned in yesterday's column. Bears can eye of 4650 zone one more time which can be overuled by 4833 opening.4862 is the next level to watch where we had massive fall from this zone. weekly close above that level is strong bullish sign for New high in Index. yesterday kingfisher call made more than 20%.

Levels ::

Nifty fut supp @ 4690 :: Res @ 4862

Bearish > 4682 < Bullish

Stocks to watch ::

Spice comm
Wockhardt
Hexaware

Happy trading !!!!