DAILY REPORT FOR 9 MAY, 2008
NIFTY (5081 -54 pts)
Supp 5040/4990/4960 Res 5120/5160/5200
SENSEX (17080 -259 pts)
Supp 16970/16870/16680 Res 17210/17300/17390
Outlook for 9 May, 2008:-
Inflation numbers will be announced today and until that no major trend is expected. Sideways movement is anticipated in the first half. The range can be between 5040 to 5120. Sensex has to break above 17230 and sustain there to show good gains. Not doing that will mean more correction towards 16600 in near-term.
Today's closing being above 17255 for the Sensex can give way to some rally next week.
As the trend is still uncertain, one is advised to take positions only for very short-term. Investors looking beyond 2-3 year horizon should not worry as the long-term story is very strong. Sensex levels are mere levels and companies do outperform the indices. If Sensex can show 10000 levels, it can show 40-45000 levels also some day. It is how we look at it. Being in strong growth companies is always going to benefit the investor. Take an example of CAIRN. The author had recommended the stock many times from around 210 levels and now it is coming close to the 300 target. Good rewards await for patient investors but people don't like to wait. Trading for instant money is fatal in the stock market.
IDEA Cellular (106.40):- The stock is showing good formations on graph and it can target 117-119 levels quickly. Buy with SL of 102 on closing basis. Crompton Greaves, GT Offshore look good and should be held as more gains are possible in those stocks.
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.