As mentioned in the last week’s outlook that the support for the Nifty is at 4597-4517. The nifty touched these levels and shown a spectacular bounce back from there. We advised short term investors and traders to take long positions at the lower levels. The daily trend has changed and Nifty is back in the short term uptrend but still we are not able give a weekly close above 5130 on which trend reversal in weekly charts would take place. So for short term traders we would advice to book long positions on rise to 4960-5070. Overall bullish trend will be confirmed and continue on weekly close above 5130. Moreover the Dow Jones also bounced back from its crucial support levels.
Short Term traders holding long positions shall hold on to it, those who want to build fresh long positions should wait for a fall to 4740, one can hold long positions with overall stop-loss of 4650.
Stocks to Go Short: BPCL, HCC, SunTV
Stocks to Go Long: Bharti, JindalStel, Educomp
Previous Outlook
3-Nov-09
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
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