Hurdles Not Over Yet

Dear Investors:  

      

NIFTY CLOSED WELL ABOVE 6000 MARK AT 6111. THE NEXT RESISTANCE IS AT 6044 (TODAY TESTED 6039). IF BULLS MANAGE TO CLOSE ABOVE THIS LEVEL, THEN 6115 AND 6220 ARE THE NEXT HURDELS NIFTY HAS TO CLEAR TOWARDS THE

JOURNEY OF 6330. A CLOSE BELOW 6044- FOR COSECETIVE TWO SESSIONS AND

IF NIFTY SLIPS AGAIN BELOW 5960, IT WILL CONFIRM THAT ‘THE CORRECTION’  IS STILL IN ACTION AND MAY TRY TO TAKE NIFTY TO OTHER TARGETS AT 5660, 5620, 5445. SO FRIDAYAND MONDAY ARE CRITICAL DAYS TO BE WATCHED CAREFULLY. IF, US DOLLAR INDEX SLIPS BELOW THE RESISTANCE LEVEL OF 81 AND DOW MOVES UPWARD, IT WILL BE A GOOD INDICATION FOR EQUITY MARKETS

HISTORICALLY

THE PRESENT UP MOVE IS A PART OF RALLY STARTED AT 4786 NIFTY IN MAY 2010 AND REACHED 6330 LEVELS IN NOVEMBER THIS IS 1550 POINTS MOVEMENT NOW CORRECTIVE TREND CAN REACH FOLLOWING TARGETS,

1. 38.1% CORRECTION OF 1550 REDUCE 590 POINTS FROM 6338 AND TARGET AT 5743.

2. 50% CORRECTION OF 1550 REDUCED 750 POINTS FROM 6338 AND TARGET AT 5587.

3. 61.8% CORRECTION OF 1550 REDUCE 957 POINTSFROM 6338 AND TARGET AT 5377.

BEARS EXIT AT 6044/6090/6115 LEVELS AND BULLS CAN INITIATE FRESH LONGS WITH A  A STOP LOSS OF 6004                 

Some Data to Remember
====================
TODAY’S (02/12) CLOSE IS @ 6111 (+51 POINTS)

LAST HIGH @6029 and LOW@5980

WEEKLY HIGH@6029 and LOW@5690

5 DMA (DAY MOVING AVERAGE) IS @5883

20DMA@6037
50DMA@6064
200DMA@5481

IMMEDIATE TREND IS POSITIVE.

NEXT RESISTANCE LEVEL:  @ 6040

WEEKLY RESISTANCE: @ 5980
WEEKLY SUPPORT: @5770 /5688/5600/5511

EXPECTED RANGE FOR NEXT FEW DAYS: 5955-6080

RESISTANCE AT: 6044/6066/6080
SUPPORTS AT: 5977/5955/5933

RISK TAKERS CAN BUY,

1)       SUGAR STOCK: Renuka, Balrampur Chini

2)       Talwalkars

3)       Dabar

4)       Bharati

5)       Artson Engg

6)       Tutis Tech

7)       EMCO

8)       V GUARD

9)       TVS MOTOR

Advised to keep strict stop loss @5% to 7% below

WE HOPE FROM HERE EQUITY MARKETS START TO RALLY. BUT WITH HIGH   VOLATILITY AND WIDE TRADING RANGE IN NIFTY AND MARKET DURING DEC.2010.

IPO WATCH :

1) CAN AVOID SHIPPING CORP.

2) COSIDER APPLYING   ‘RAVIKUMAR DISTILLARIES’ (Opening ON 8^TH DECEMBER)

THOUGHT OF THE DAY

"It's bad to go to bed at night thinking about the price of a stock. We think about the value of the company”

Take care

Dr. Vasant Bele

Disclaimer: Views expressed are mine. Take your own investment decisions.