VIEWPOINT: NIFTY CROSSES THE 4950 HUMP; REMAIN LONG WITH SL OF 4805
Dow yesterday gained 0.8% to close at the highest level since 21st January, 2010 and just 3% short of the intermediate high made on 19th January 2010. AIG surged 4.4% as the company stroke a deal with
Our markets, after remaining flattish for the first 4 trading sessions of the last week, made a decisive move on the budget day to cross important resistance levels. Nifty touched a high of 4992 on Friday, the 50% retracement level of the fall from 5310 to 4675, encountered a stiff resistance there and came off sharply to close at 4922. Nevertheless, it was a remarkable performance as previous tops of 4930 made on 17th Feb and 4951 made on 2nd Feb were crossed intraday. On weekly basis, Nifty gained 1.6%, making it a third consecutive positive week. We have been maintaining our positive stance above 4844 in Nifty and the same has been vindicated by the subsequent movement of the benchmark. The positive bias on the market has further strengthened as Nifty has now closed above the trend line adjoining tops of 4951 made on 2nd Feb and 4930 made on 17th Feb. Another point strengthening the positive view is the negation of the lower top lower bottom formation on the daily chart. Ever since Nifty broke 5170 on 21st January, a lower top lower bottom formation was in place. The benchmark by making a higher bottom at 4805 and crossing the previous top of 4930 has now initiated a higher top higher bottom formation. MACD on the daily chart has inched up in the positive territory and is moving upward, indicating positive momentum. 4805 will now work as a support while 5068, the 61.8% retracement level of the entire fall, would be the resistance. The advice would to stay long with the SL of 4805.
| OPEN POSITION CALLS | |||||||||
| Reco Date | STOCK | RECO PRICE | RECOMMENDATION | SL | TARGET | TIME FRAME | CMP | % Gain/ Loss on CMP | Comments |
| 05/01/2010 | ELECTRO STL | 51.70 | BUY 50% AT CMP AND 50% AROUND 47 | 42 | 67,75 | 2-3 MONTHS | 43.85 | -11.14 | Call Open |
| 16/01/2010 | BEML | 1185.00 | BUY 50% AT CMP AND 50% AROUND 1100 | 985 | 1525 | 2-3 MONTHS | 1013 | -11.32 | Call Open |
| 18/01/2010 | J B CHM | 66.50 | BUY 50% AT CMP AND 50% AROUND 61 | 55 | 83 | 2-3 MONTHS | 63.05 | -1.10 | Call Open |
| 29/01/2010 | GARW POLY | 53.55 | ACCUMULATE BETWEEN 53.55-51 | 46 | 67 | 1 Month | 47.2 | -11.86 | Call Open |
To Read our Morning Call, Please CLICK HERE
Regards,
Anagram Research
Happy Trading,
United we grow!!!
No comments:
Post a Comment