December 2012

WATCH OPTO CIRCUITS .... LOOKS LOKE DECLINE IS OVER AND STOCK CAN MOVE TO ABOUT 125 IN NEXT 6.8 WEEKS .....

Trading levels 

24th / 28th   December  2012

Last Fridays flourish in the end provided enough momentum for the bulls to try to push the NIFTY further up for first 3 days. But when they failed to clear the previous weeks high, the bears took charge and pushed index diwn very hard in last two days.

We have closed very close to previous weeks low and there is 90 % chance that the previous weeks low of 5841 will be broken on Monday itself which wl open possibility of further downside.

We have F&O expiry on Thursday and that will make this week volatile with sharp moves on both sides.

Banking bill  was cleared by Loksabha and all banking and NBFC stocks rejoiced mid-week – many  hitting  52 week highs.

The FII flows have been phenomenally strong and that is the reason why the market has not lost significant ground.

I maintain that 5838 / 5840 seems to be a fairly strong support failing which we may have another 100 point slide on the NIFTY.

Some of the daredevil traders who follow me, have taken preemptive short positions on Friday when NIFTY refused  to show any inclination to move up. They will be rewarded on Monday but I will not recommend such foolhardy approach. IT IS ALWAYS PRUDENT TO MAKE AN ENTRY ON A CONFIRMED BREAK-OUT. RISK REWARD IS MUCH FAVOURABLE THAT WAY.

Market is not looking strong on monthly charts anymore and short entries on weekly short triggers could give substantial returns.

Keep logged on to yahoo messenger for guidance related to investment levels on specific stocks. I will be putting some of those recommendations on my website also under messages tab as well.

I am available on yahoo messenger on most of the trading days and you can add me on your yahoo messenger.