It was a bad day for the markets as indices tumbled around 1.5%. Nifty slipped below 5000 yet again after
sustaining around 5050 for past three days. Failure to take out 5085 resulted in some fatigue and tiredness as
profit taking took its toll on heavyweights. High beta sectors like Realty and metals were worst impacted
and some of the biggest losers of the day belonged to these two sectors. Banking stocks too slipped on profit
taking. Sugar stocks were the biggest losers as strong unwinding was witnessed in Bajaj Hind, B.Chini and
Triveni. Few stocks that managed to buck the overall negative trend were PTC, PFC, Orchid, Mcdowell,
GVK and Suzlon.
Nifty is back below 5000 and the correction could take it lower to around 4880-4900. Positional trades (on
the long side) need to be closed if Nifty fails to take support around 4880. On the other hand sustained
trades above 5035 again could strengthen the bullish bias. As of now it is a waiting game with 5035 and
4880 being the crucial trend deciding levels.( On closing basis). Weakness is visible in most of the realty
counters as well as certain banking stocks. On the positive side are IT counters as well as power stocks like
REC, PTC, GVK and these qualify as buy on dips counters. Others buy on dips stocks are IDFC, ITC,
Renuka, GSPL, Tata Motors and Ashok Leyland.
Nifty now has immediate resistance around 5030-40 while below 4960 support is seen around 4910-25.
Personal problems can decimate a trader’s performance. If you are experiencing physical
or emotional distress, either stop trading altogether, or reduce your trading activity to a
level at which you can’t do much damage. – Mark D Cook
Nifty Takes A Dip
After two days of consolidation Nifty takes a knock of dip. Next support for the Nifty is seen around 4940,
close below 4940 could be indication that Nifty may be heading for lower levels. Short term traders are
advised to close their long position if Nifty close below 4940. Professional traders can initiate short position
if Nifty breach 4940 with strict stop loss. Aggressive traders can buy Nifty with stoploss of 4940.
Support for the Nifty is seen around 4940. Resistance for the nifty is seen around 5075-5085
BRFL CASH BY ABOVE Rs.205 SL 199 TGT 213/219
JP ASSOCIATES CASH SELL BELOW Rs.224 SL 229.50 TGT 217/211
DLF CASH SELL BELOW Rs.361 SL 371 TGT 353/347