==>> Support at 4866.Bank & cement will be in lime light

Nifty opened flat, but within, it was seen trading in the red zone. But in the closing session, closed in the positive zone. Sensex closed 250 points up. We did see some great roller-coster ride today. But as mentioned in the morning that we will see bounce back today. This indicator could be seen in the price pattern that was made yesterday. But still the dark clouds are still there, and it can once again prove fatal.

Is this the end of the recent correction or just a beginning of the second round of correction??? This is the only question in every one’s mind. On Friday 23rd, it was mentioned that the Nifty will come down till 4900 levels and after that 4800. Today Nifty made a new low of 4835. In the last 3 days Nifty is making new lows, but the close is above the long term trend line ( Red line ). In the last 3 days the Nifty is taking good support at the same. The close above 4960 will only break the present trend. 4865 is the long term trendline support. Nifty has a small resistance at 4910 levels.

At last we saw some rally in the Banking stocks. In the last few days we have seen the huge short built up in the Banking stocks. In my last month’s blog, I have clearly mentioned that the Investors should stay away from the Banking and the Real estate stocks. Viewers can themselves see that harsh behavior with these sectors. Today we saw some bounce back due to short covering.

Crude prices are cooling a bit. Banks stocks will bounce back a bit.

ICICI bank has a very good suppor at 801 levels. Buy with the same SL. SBI is in the over sold postion. Buy with todays low as SL. Bank Nifty has a good suppor of 6545. HDFC Bank looks good with the Closing SL of 1349. Buy IDBI with the SL of 84. Ambuja cement chart is looking intresting, buy with the sl of 96. BUY ACC if it trades above 670 for sometime. India cement buy above 166. CONSIDE THESE STOCKS AS A GOOD BUY WHEN THE MARKETS ARE IN THE POSITIVE ZONE. IF THE MARKETS OPEN GAP DOWN IN THE NEGATIVE ZONE, THEN PLEASE AVOID BUYING ANY. SL SHOULD BE MENTAINED.