NEWSLETTER

MY CHART

Nifty :: After an 4650 breakout Nifty move up sharply on Friday and made an Hammer, High wave bullish candle in weekly chart.. From last two week we constantly plot two bearish pattern.. Short term momentum once again turns bullish but please check highlighted resistance level… Very difficult to cross all this resistance level even fast short covering came.. Be careful at higher level.. Due to short term bullish structure our strategy buy ONLY in deep (S.L 4562) Sell at high (S.L 4830).. If Nifty open gap up avoid buy at high and watch resistance for shorting of small gain.. Resistance for up move at 4720/4731/4744/4756/4788/ 4820/4830.. Supports at 4650/4642/4592/4583/4562 ..

(Inder Bhatia)

BUY JSW STEEL ABOVE 698 TGT 713>731 STOPLOSS 683


BUY ADLABSAROUND 347-351TGT371>383 STOPLOSS 341

Last week sensex ended lower by 1.5% and nifty 1.1% respectively, Market saw bounces from the lower level and holding 4550 zone. As last week we had mention about nifty trading in range 3980 -4700 zones and in that band 4350-4700 zone even now we had enter in more narrow zone 4550-4700 zones as shown on chart .On above daily chart we are witnessing narrow range from the previous range 1st range was 700 point than we had seen nifty moving 370 point range and now just 178 point range. As we are seen the range is reducing from 700 point to 170 point and almost we are forming rising wedge that is bearish pattern .In coming days we can see breakout or break down whipsaw .For clear up move nifty need to close above 4780 levels with volume on closing basis and it can test 4821-4841 zone. On the other side closing below 4550 zone we can test 4440-4410 and closing below 4410 we can start down trend cracking big rising wedge . Infact on weekly chart nifty and sensex are approaching the 61.8% Fibonacci retracement levels of the entire downturn that zones will act as strong resistances .Along with that negative divergences are reflecting on daily and weekly chart that negative sign .For this week key level 4510

The Indian market opened on positive note and saw sharp recovery in afternoon session and close with green zone.For coming session if nifty trade above 4688 it likely to test 4721-4755 zones .On the other side 4640-4610- zone will act as support for the day .

BUY ASTRAMICROWAVE 85-88 TGT 107>113STOPLOSS 77

we had mention any major rally correct before next move still we had seen just 33%-3978 level and 38%around 3885 and 50%is 3634 zones as shown in above chart .

(S S Cheema)

When I talked about the resilience of the markets in my last post I had frankly not expected the kind of upswing from the markets that it really showed. That was a fabulous turnaround that took the markets to the close it did. now like we have had multiple tests of the highs earlier – we have tested the lows also. The range is small and the breakout will happen whenever it has to. The high is at 4735 and low at 4576. There should ideally be another attempt at breaking the high once again and I am quite certain that the high will be broken – how much conviction that breakout has will remain to be seen. Look at the FII and DII data – this selling by FIIs will remain a concern whether we like it or not.

The global cues were good and that should start the week on a good note. The Asia had ended the week with the Nikkei down in red 0.27%, Hang Seng up 2.82% and Strait Times up 0.94%. Europe performed better than Asia and it started in green and ended in green higher than the opening point – never visiting the red area. FTSE ended up 1.15%, DAX up 1.57% and CAC up 1.27%. US on the other hand started the day flat but went on to comfortable green by mid session and remained there only for the rest of the time – ending – Dow up 1.03%, Nasdaq up 1.79% and S&P up 1.31%. Nikkei has started the day today almost a percent up. Mind you today being Labour day the US markets will remain closed and that part of the cues will be missing so incorporate this factor in your assessment of the markets.

On the charts the markets bounced once again from the middle of the Bollinger bands not really bothering to violate the middle of the bands to test the lower band. It also coincided with the support as you would be seeing on the chart on the left. Now to this end we are very close to test the upper Bollinger Band at 4779. The range too has become so constrictive that a breakout is just a matter of time and I would still not bet on the direction of the breakout. Notice two things on the charts – the green ticks do not have relatively more volumes than the red candles. The red candles are with a little bit more volumes than green candles. Now that is the reason I say that it is difficult to say who is running out of steam. Not only that it may be prudent to point out the FII and DII data once again.The TRIX is flat with perhaps a little positive bias. As far as the MACD goes the lines are overlapping each other with hardly any divergence. RSI is at 57.76 and the RSI simple moving average for 15 days is also above 50 at 54.6 – this has two things – the moving average is above the 50 point and the RSI is trailing above the SMA. As always my concern is the ADX – it is at 11 – It will surely move shortly above the 20 marker and that mind you will definitely give out the trend the markets will take in near future. So what I am saying is that do not read into the 100 odd points upswing – it is most likely to be temporary – one of those days run up. As far as the Slow Stochastic are concerned they have turned bullish by a cat’s whisker – so I will read it neutral. MACD is still bearish. So here we are – with nothing to read really in the tea cup of technicals.

As far as the options data is concerned the PCR is at 1.23 – resisting the markets from going into a free fall. Options pain says that 4600 is the level and till that moves the markets are signalling a hovering around this point. The greatest open interest is at 4600 Put now with 45.93 lac, 4500 put with 44.41 lac open interest, 4800 call with open interest at 36.19 lac (next bus stop around 4800 levels?) 4300 put at 33.78 lac and 4000 put with 33.14 lac open interest. So that does give us some sense as to where we are heading for.

I will summarise this in the following manner, Global cues are good. Our Charts are mixed with volumes and the ADX not playing up still. The Options data point out towards to some more upswing before we stop. All in all the ideal strategy would be to remain long. The stoploss for longs would be closing below the 4579 level and if holding shorts then keep stoploss of close above 4665 for the day. For today go long above 4644 and short below it. I wish all of you luck for today’s trading.

(waval atul)

PZ READ POSITIONAL CALL NO..1 ( net gain 180 points )......AND POSITIONAL CALL NO..2 ( net gain 300 points )...........AND POSITIONAL CALL NO..3..( net gain of 900--1000 points)..GIVEN IN GRAF total gain 180+300+1000 ==1480 points gain......PZ note that its a longer term graf and read THE GRAF CAREFULLY..FOR MORE WAVE COUNT DETAILS and such positional calls on correct precise levels with very small stoploss and large gain

BUY (Investment Deliveries)

USHERAGRO@ 35/40,Sl 30,Tgt 55/65/70+

CRANESSOFTWARE@ 30/35,Sl 25,Tgt 45/55/60+

COUNTRYCLUB@ 20,Sl 10,Tgt 30/35+

PRAJAYENG@ 30/35,Sl 25,Tgt 50/55/60+

IBSEC Above 50,Sl 45,Tgt 60/65+

WELSPUNGUJ Around 225/50,Sl 200,Tgt 275/300/325/350

GTLINFRA@ 38,Sl 30,Tgt 45/50+

RELCAP, Sl 870,Tgt 925/50/80

IDFC, Sl 130,Tgt 140/45/50

HIINDZINC, Sl 750,Tgt 830/50/80

Hot Counters : IVRCLINFRA / SUZLON / KALINDEERAIL / BARTRONICS / YESBANK / GMRINFRA

Keep Your Eyes On :

REFEX REFRIERANTS : Refex Refrigerants Ltd is venturing into renewable energy (Solar and Wind Power) and is a Carbon Credit candidate.

ENNORE COKE : Ennore Coke has a met-coke, mining, Power and Carbon Credit stories for the investors/traders.
XLTELE : The Mega-project of XL Telecom is about to complete and the Europe coming out of recession is a very positive news for the company.

RITESH PROPERTIES : Interesting Story Buliding

SEL MANUFACTURING : A Textile company of class and favourite of the Punters.

BUY NIFTY ABOVE 4720 SL- 4699 TARGET- 4756-4777-4810
SELL NIFTY BELOW 4667 STOPLOSS- 4687 TARGET- 4635-4590

Nifty Fut Res- 4808, 4784, 4768, 4744, 4729, 4704, 4680 .
Nifty Fut Sup-4664, 4639, 4624, 4599, 4575, 4559, 4535 .

BUY CAIRN FUT @ 258.75 TGT 260.25-262.50-263.25-264.50-265.25 SL 255
BUY HDIL FUT @ 296.50 LEVELS. TGT 298.50-300-302.20-303.35-305-306.50. SL 291
BUY MARUTI @ 1533 TGT 1537.55-1542-1551-1555.6-1560-1573.75 SL 1519.45
BUY CADILAHC @ 487.15 TGT 489.7-492.3-497.4-500-502.55-510.25 SL 479.45
BUY BPCL @ 551.8 TGT 554.2-556.55-561.25-563.65-566-573 SL 544.7

Short Term Stock Tips :

Cairn India : Buy above 260 for targets of 267 and 273. SL of 255
GMR Infra : Buy above 135 for targets of 138 and 142. SL of 132
RNRL : Buy above 86 for targets of 87.50 and 88.90. SL of 84.10

AMTEKAUTO (Amtek Auto Ltd.)
BUY ABOVE 183
SL 178
Target1 194
Target2 205

SELL BELOW 177
SL 179
Target1 167
Target2 150

KRBL (KRBL Limited)
BUY ABOVE 153
SL 149.5
Target1 157
Target2 162

SELL BELOW 148.5
SL 150.5
Target1 145.5
Target2 138

HDIL (Housing Development And Infrastructure Limited)
BUY ABOVE 299
SL 295
Target1 302
Target2 306

SELL BELOW 294
SL 296
Target1 292
Target2 285