DAILY REPORT FOR 12 MAY, 2008
NIFTY (4982 -99 pts)
Supp 4932/4910/4840 Res 5015/5050/5090
SENSEX (16737 -343 pts)
Supp 16570/16490/16300 Res 16840/16960/17120
Outlook for 12 May, 2008:-
The correction was expected but now it looks like the pullback rally itself has ended and we may see downtrend. It looks like the May-month syndrome is weighing down on the markets.
The bounce can come from in-between support levels but overall one should be prepared to see more fall in days to come. Long-term investors will get many opportunities in these times as many value-buys will emerge.
If one wishes, all profits can be booked. Some times small losses should also be taken as it is always better to take a small loss than the mother of all losses.
Following stocks were recommended when we started this pullback rally around 18 March, 2008 :- Ranbaxy, Maruti, Cairn, Bata, Purvankara Projects, Amtek Auto, Suzlon, Mundra Port, Renuka Sugar, Asian Electronics, GT Offshore, ONGC, Orchid Chem. Many scrips have performed from this list. Ranbaxy, Maruti, Suzlon can still be kept as investment buys. Rest profits can be booked if yet they are pending. Crompton Greaves has been recommended many a times and those who can wait can keep it for longer timeframe. Keeping 70-75% cash levels is advised so that we can again look at new opportunities whenever they emerge.
Today markets to open lower on weak global markets but a gap down opening will be bad. Traders need to wait and let the markets settle before they initiate any trade. The current downtrend can take us towards 4850 with support at 4932 and 4910 on the way.
APIL (609) is looking weak and the stock can target 550 levels on the downside. Crossover of 640 can negate this view.
Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.
No comments:
Post a Comment