Monday, March 23, 2009

Nifty Upside left

Still........Searching for a Reason to Join Us

More You Think More You LOOSE

Bull run to continue, midcaps to lead the rally

Above 2810 No bears only Bulls

Obama regime is expected to announce a plan to buy banks’ soured assets. Nifty futures in Singapore and Dow futures are smartly up. But, there could be wild swings for sure ahead of F&O expiry. Also, some resistance is likely at higher levels as investors could turn cautious ahead of an eventful April

Watch GujNre

Financials, Metals and Realty stocks might get a boost again. Sesa Goa Ltd, SAIL & Tata Steel might be the ones to watch out for, in today's trade. Crude oil related stocks like Cairn India mighte benefit from the spike in Crude above the $50 level. Investors could also look at drilling stocks like Aban Offshore Ltd and Shi-Vani Drilling, whch could benefit from the increased prices.

We have seen some build up in price and volume actions in stocks like Gokaldas Exports which are usually thinly traded. SREI Infra, Hanung Toys, Nitin Fire are also some of the stocks that could maintain their momentum. Traders could concentrate on second rung and speculative counters to make some quick bucks. Overall, a good day for the markets and especially midcaps on the cards.

Jet Airways India

We recommend a sell in Jet Airways from a short-term trading perspective. It is apparent from the charts of Jet Airways that after recording a 52-low at Rs 115 on March 12, the stock bounced up.

It gained almost 65 per cent in a short span of five trading session and encountered resistance in the band between Rs 180 to Rs 190.

At this resistance, the stock formed a shooting star candlestick pattern, which is a top reversal pattern. However, subsequently, it resumed its medium as well as long-term down trend.

On March 20, the stock plummeted by 10 per cent confirming the reversal pattern. The daily relative strength index has entered into the neutral region from the bullish zone signalling loss of bullish momentum.

We are bearish on the stock from a short-term perspective.

We expect it to decline further until it hits our price target of Rs 144 in the approaching sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 168.