Tuesday, April 28, 2009

Midcaps to correct

Nifty Levels 28.04.09
Nifty Spot Support and Resistance for 28th April 2009
27.04.09 Total Gain of 82 Points in Bull and Bear market
Spot Previous Close: 3470
Resistance One : 3508
Resistance Two : 3549
Trend Reversal Point (intraday) : 3467
Support One : 3426
Support Two : 3385
Trend : Up
Happy Trading

Watch out for metal shares today. We are bearish on Steel stocks and advice booking profits and short seeling Tata Steel and SAIL at current prices of Rs 253 and Rs 111 respectively. Also, banking looks vulnerable after a a decent run yesterday.

We suspect huge F&O positions on the upside and there are strong indications that a major player is trying push the market towards the Nifty 3500 level. This is one of the major reason for the sort of resilience we have seen in the Indian markets inspite of a global meltdown.

There have been some gainers in the midcap space. The volumes have been really low in the winning stocks today a strong indication that the bulls are tired. The Sensex might hold as far as points are concerned, but stocks might suffer some losses. Thanks to the F&O expiry

DLF is experiencing selling pressure at higher levels. Utilise rallies to sell the stock, with tight stop-loss at Rs 252. The outlook remains positive as long as ICICI Bank trades above Rs 455 level. We recommend a buy. Infosys is pausing, avoid trading in this counter. Fresh long position can be initiated if L&T exceeds Rs 927 level, with stiff stop-loss. We recommend a sell in ONGC and Reliance Communications. Initiate fresh short position if Reliance Capital declines below Rs 515 and SBI tumbles below Rs 1,266, with tight stop-loss. RIL is moving sideways, desist trading in this counter for the session. Nifty future is witnessing selling interest around Rs 3,500 levels. Sell Nifty futures in rallies with tight stop-loss at Rs 3,495