April 2013

MY WEEKLY TAKE ....

Trading levels  ---  15th / 19th  April   2013

Last week was a very satisfying week for me ….. as an ANALYST …. Not so much as an INVESTOR though.

1… We did hit a low of 5477 on nifty ….. you will recall that I have been saying for last 3 weeks that 5460/5480 is imminent but it is a solid support zone. We did bounce from 5477 … with some strength but INFOSYS debacle on Friday has put the recovery in doubt.

2… INFOSYS --- the day WIPRO announced results last quarter, I had written as follows ….

INFY price ...2800+ ..... is it justified ......

wipro's results hv highlighted possible fallibility of other bell weather IT results .... WIPRO has taken cognizance of debt ceiling issue ... which our armchair analysts seem to hv ignored and made some straight line projections which is the reason for ramping of INFY to 2800+ levels ....

at this juncture ... 2550 ... give or take 50 rupees seems to be PAR price .... and i am convinced that the share wl come there in due course of time ....

if any body is holding INFY .... PL BOOK OUT ... u wl get the share about 250 rupees cheaper ....... in the coming days ......

That is the reason why the stock crashed over 600 rupees on Friday  … results per say were not so bad …. But it was the expectations of analysts which had run sky high ….

Where do we go from here ? ? ?

It will be mostly dependent on big results expected next week. My charts are saying that as long as there is no disaster in any of the big, we should creep up towards 5600/ 5650 slowly ….. fortunately US markets have again shown strength and that should be a saving grace for us.

I have released monthly trading levels for APRIL 2013 on my website – www.sumamura.com under messages tab and you can have a look at the same before entering fresh trades.