BACK AFTER A LONG HAUL!

Pardon the long vacation folks. Professional commitments kept me occupied.The blog was lat updated on 26th May where the bullish stand was upheld.We are up 1000 points from there on the Sensex and the guts to go long have clearly paid off.The stocks mentioned in the blog have outperformed the Index viz Sun pharma,Divis and Great Eastern Shipping.

Now what do we do? The Nifty is trading close to 5200. Where do we go from here?I believe there is still some upside left, but one should get in the market on dips. The Nifty can go to 5400.The supports at 5100 should hold for the short term. Buy on dips to 5150-5170.

Capital Goods, Banks and Pharma are still the sectors to trade in.

Punter pick : GTL Infra : Some outrageous targets have been placed on this one with a 6 month perspective.Can take a small exposure.

NOW ITS ALL ABOUT WHO BLINKS FIRST!

The market violated the bottom made on Friday and closed at a new low. The general sentiment is highly pessimistic and the Indicators are oversold. The fall has been approximately 2000 points with no intermittent bounce backs ( which could sustain for more than 1 day!)

We did anticipate a bottom and trailing stop loss was hit yesterday. The stocks recommended in this blog have not violated the lows made on Friday where the call was to go long. Sesa Goa was the only one to disappoint.

Great Eastern Shipping and Sun Pharma have stood against the tide and Divis Lab is hovering around the levels achieved on Friday.

As per time analysis, the market should bounce from here given that the indicators are oversold and the sentiment is highly negative.Don't give up too soon.Watchout for 15900 on Index (15600 worst case, though I do not expect it to arrive ) .

I maintain the same stocks as you always Buy the Beast and Short the Sick.

Real Estate presents a good opportunity at these levels. But beware as they are high beta stocks. Strictly for risky traders.

DLF with a stop loss of 245 and Unitech with a stop loss of 60. If market turns from here, which I expect it will, you will be surprised at the returns!!

Have a great trading day,

Regards,

Rahul T.

DOUBLE BOTTOM NOT ANYMORE?!

The markets tested 4850 on the Nifty on Friday and touched an intraday high of 5022 odd yesterday. We maintained that the bottom has been made. Was it too premature? With every passing day...as the Nifty fails to show strength..the conviction that 4900 odd is the bottom is fading...

But the problem is also that we are in the last week of expiry and volatility is always pretty high. For now just wait and watch.Hold on to your positions and see if Nifty closes above 4900 today.If it doesnt, something is not right with the market. Trim positions, take 2 steps backward and we shall re-think the positions.

Divis Lab is showing a lot of strength and can target 780 in the short term.

Have a great trading day,

Regards,

Rahul T

TIME TO BUY...MARKET IS NEAR ITS BOTTOM!

Panic is highest at the bottom. I may be making a daredevil statement here and putting myself on the line but drastic times call for drastic measures.

Buy whatever you like, its a matter of 3-4 sessions and market should turn around.

My fav picks : Divis Lab, Sun pharma, Ge shipping, Sesa Goa, Banks!

Have a great trading day,

Regards,

Rahul T.

THE BERLIN WALL FOR SHORT SELLING!

Euro slides to a four year low, Goldman makes 9 wrong trades out of 11 trades recommended to clients in 2010 and now the feather in the cap, Germany bans naked short selling citing excessive volatility in the Euro markets! Like we all believe that!

The step taken by Germany’s BaFin financial-services regulator was clearly a panic reaction. If it smells funny, I am not eating it! A flurry of bad news is flowing in the market and the volatility has gone over the roof. Better to let the European Nations fight it out while you remain on the sidelines and watch.

4900 on Nifty is still the place to go long albeit with a stop loss at 4840.

Sugar stocks seem to have bottomed out and Balrampur Chini looks the best among the pack. The tradeable bounce can take the stock to 82.

Pharma still remains my favorite sector and Divis Lab my favorite bet. Also a defensive sector which does not have a high beta. Divis is stuck in range from 680-720. ABove 720 can target 770-780.

Have a great trading day,

Regards,

Rahul T.

4900 ON NIFTY SHOULD HOLD.

The market has not able to cross 5200 in the last week inspite of a huge gap up opening on Monday.When gaps occur against the trend ( The short term trend was negative below 5200 ) it is considered to be a trend change indicator. However, that holds true only in trended markets. The markets for the last couple of months have been largley rangebound.

In rangebound markets the gaps tend to get filled as we shall see today. The supports at 5000 and 4900 are strong and should provide one tradeable bounce back. 

4900-4950 on Nifty should act as a buying zone with a stop loss below 4880.

STOCKS TO BUY : GE SHIPPING & SUN PHARMA LTD.

Have a great trading day,

Regards,

Rahul T.

SUPPORT AROUND 5000 FOR THE SHORT TERM.

5200 could not be breached. The market is in a short term downtrend till we trade below 5200. The eventual targets can be 5000-4900 (worst case). The volatility has increased and its better to not take extreme short term trades. The stops tend to get hit very often in such volatile periods.

Wait on the sidelines and buy in a staggered manner at 5000-4900 range.

Regards,

Rahul T.