Current week is the smallest trading week in the current year with only three days of trading session. But that does not kept the traders out of the markets. The markets were very volatile during this week.
On Monday Nifty opened in the negative zone as mentioned and closed at 5785 after taking support at the 50% retracement levels. A day after that Nifty again opened with the negative points but bounced back sharply to close up 125 points. In the opening session Sensex was trading nearly 175 points down but pulled back sharply near 450 points to close at 19696. Global markets too followed the suite. But almost half of the gains were lost on the last day of the trading session. Sensex dropped nearly 350 points in the intraday. But close down 310 points. Nifty closed down 87 points down. Out of the 87 points of the loss in Nifty around 2/3rd was just because of the Infosys. As the Guidance from the Infosys was not upto the expectation, markets men dumped the shares of Infosys. FII too sold the shares in the market.
Inflation for March seen an unexpected rise from 8.31% in Feb to 8.98%. IMF is no longer bullish on the India’s Economic Growth. On Monday it lowered the growth projection for 2011 to 8.2% down from 10.4% for 2010.
Gold Prices climbed back above $1460 an ounce on Thursday and silver rose after an unexpected dropped down in the Dollar after US data showed a jump in jobless claim. The precious metals came under pressure in earlier trader as speculation that some euro zone countries may be forced into debt restructuring weighed on the euro, but gold quickly rose back to session highs after the jobs number.
As mentioned in the earlier article also that the markets are overbought and we might see some correction and that did happen. Last weeks Doji Pattern in the charts of the Nifty, gave a green signal for the down ward trend. Markets continued the correction as on the start of the week. Nifty did try to bounce back from its low on Wednesday but faced stiff resistance at its 61.8% retracement levels and on the next trading session tanked to close at 5824 after taking support at 5800 levels.
Last week I had mentioned a that (Nifty will find support at 5800-5765-5735 levels). This week Nifty made a low of 5735. The levels still remains intact. We might see some correction.
Last weeks call
Sell Andhra Bank below 148 SL 149.50. Made a low of 146
Sell Bharat Forge below 355 SL 360. Made a low of 345
Sell Cipla Below 316 SL 319. Did not trigger the price.
Sell Corbank below 621 SL 625. Made a low of 606.
Sell DLF below 257.5 SL 259.5 Made a low of 244.
Sell Hdfc Bank below 2345 SL 2352. Made a low of 2275.
PIPAVAV SHIPYARD
Pipavav shipyard is been tradin in a very tight range between 83.50 -75.00. As we can see in the chart the stock have tried out many times to close above the 83.50 levels but failed to do the same and corrected everytime there after. After a month long consolidation it seems that the stock is ready to breakout through this range and move forward. Breakout above the 83.50 levels, can take the stock to 88-91-95 levels within short term. MACD has given a positive divergence. SL can be kept at 80.50 levels. Buy recommended at current levels.
This weeks call
Buy Bajaj Auto above 1420 SL 1403.
Sell Cairn India below 342 SL 345.
Sell DLF below 242 SL 244.50
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