Dance till the music is ON

Hi Friends

On Monday I had posted my view that the downside in Nifty would begin once we breach 5320. But I have fallen flat on my face and Nifty has surpassed 5500. So lets stop guessing where will Nifty end its run and instead dance till the music is ON.

I had also mentioned that LT at 1365 will come down to 1300. However my target was only partially met and LT made a low of 1316 before bouncing back with renewed rigour to 1450.

Lets be stock specific and buy quality stocks like Cairn, TCS, Mcleod and LIC Hsg on dips.

Nifty in Correction Mood....

For the last one week Nifty has been roughly in the range of 100 points from 5320 to 5420. Fridays move suggests that this range will be broken on the downside and the much awaited correction of last whole month will begin. Momentum indicators like MACD and RSI are also pointing to a fall and the break of the channel shown below. On the weekly charts also there is a doji formed which signals that the breaks on the upside momnetum are pressed for now. On the other hand Dow Jones at 12880 will need extra power to cross this impediment and start fresh rally. Besides that the Rupee appreciation has also halted. Tonight Greece parliament should pass the austerity bill and world markets tomorrow will not react to it very positively. My first target for Nifty is 5200-5215 only once 5325 is breached..

The best short to me appears is Larsen and Tubro which is quoting at 1350. With a SL of 1370 one can short for a target of 1300 and 1280.

On the other hand I feel IT stocks have given a clean breakout. Polaris, Wipro and HCL Tech are examples of the same. TCS is set to make new lifetime highs and one can look to add it in weakness.

Markets precariously poised

Nifty has relentlessly marched upwards in this entire month. It has retraced more than 100% from its Decemeber high which is alarmingly dangerous to bears like me. Most of the Nifty 50 charts and other Midcap charts looks very bullish. Many charts; to name a few - LT, TataSteel, SBI and ICICIBank have moved passed their 100 Day EMA and have formed nice cups.One can see good volumes and buying in many scrips which is slowly pushing me to become a bull from a hard core bear Though there are no signs of weakenss on Nifty except for it is overbought, a pullback looks eminent.. I .The main thing to watchout will be whether this pullback is healthy retracement forming handle to the cup or next leg down. It appears to me that a bottom is in place for now and 4400 is a rare probablity. However todays volume has been quite highwhich tells me that this recent upmove is about to get over and so no new longs should be created at this juncture.

Stock Recommendations on the basis of Technicals

Hello Friends.

Posting here after a long time. Actually was busy studying markets from Technicals Perspective.

Here are few of my recommendations.

1)Geodesic

CMP = 111
TGT = 127
SL = 105

2) Alok Industries

CMP = 27.90
TGT = 36
SL = 25

3) Bank of Baroda

CMP = 937
TGT = 1000
SL = 905

Accumulate the above stocks on dips to get better Return Ratio.