As mentioned in the previous outlook that the markets are in a near term bearish zone. The near term trend is likely to remain bearish with some relief rallies in between. The next crucial closing level to watch on the daily basis would be 4666 (a very important support level, fresh shorts to be build only on close below this), a day closing below this level with further confirm the ongoing trend and we may see levels of 4597-4517 before any fresh buying comes. Whereas on the weekly basis if we see a weekly closing below 4636, levels of 4490-4300 may be witnessed. The overall trend is still down and the reversal would only be seen if we close above 4785 for 2 consecutive days. Along with the Indian Indices, the Dow Jones is also trading near to a very crucial support level of 9544.
We advise traders as well as short term investors to wait before taking a fresh position. Aggressive Traders can take a Long Position with a stoploss 4666 target 4784-4844 and reverse the trade below it for target of 4598-4521. Short term Investors should wait for a close above 4821 or for a dip to 4598 to initiate buying.
Stocks to Go Short : RCOM, HindPetro, HindZinc
Stock to Go Long : TataMotors, Nagarjuna Const, LITL
Previous Outlook
12-Oct-2009
The frontline indices traded with a negative bias in the previous week and also had a closing below the crucial level of 4966 on daily charts. We sense some more profit booking would be seen in the coming days, the next crucial levels to watch would be 4886, which is an important support. A close below this would confirm the down trend as per the weekly charts as well. We advise swing / positional traders to book profit in long positions on every rise.
Traders can take short position at current levels with a stoploss at around 5119 and lower side targets of 4890-4810. Delivery based buyers and short term investors should wait for a fall to 4890-4810 and should buy at lower levels or either buy only above 5120.
Stocks to Go Short : Satyam, Unitech , Educomp, TV-18
Stocks to Go Long : Essar Oil, GAIL, Renuka
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{ 1 comment… read it below or add one }
i am intrested in your sub for shortterm delivery calls(3 days to amonth) but the sub period iam intrested at begning is one month only this is to develop feath on you that also at a time1 or 2 calls after exit on Ist call then onther one
hope for your mail