RIDE THE WAVE WITH CAUTION

                          

Dear Investors

Markets have maintained the upward bias till closing. During the day Nifty tested

5795 on lower side and 5921 on upper side

Nifty closed at 5907 (this was first resistance level, read Dec 13^th Blog)

Intra day, Nifty tested 5795, but bounced back, it was near the PIVOT POINT

5814 (blog for December 13^th)

Intra day high was 5921, well away from R2 level, 5858 (Second Resistance level)

All the day market remained steady except in the afternoon when Nifty suddenly crashed due to Korean news but corrected in a short period.

For 14^th December

Nifty PIVOT is at 5874

R1 (First resistance level) is at: 5963

R2 (Second resistance level) is at: 6000

R3 (Third resistance level) is at: 6079

S1 (First support level) is at: 5827

S2 (Second support level) is at: 5748

S3 (Third support level) is at: 5701

Nifty PIVOT is used to determine market trend or indication where the market is likely to move. Considering the market movements on either side of PIVOT one can decide his intraday positions, for that R1 and S1 are earliest guide for putting either a stop loss or profit booking target

ONE CAN CONTINUE WITH YESTERDAYS STOCKS

AND WATCH FOR:

1) KFA (Kingfisher Air)      PIVOT is at 62.20

                                          R1 Level is at 64.50

                                          S1 Level is at 61.30       

                                          S2 Level is at 59.60

So keep a strict stop loss at 59.60

2) HEXAWARE             PIVOT is at 102

                                     R1 Level is at 110

                                     S1 Level is at 97

                                     S2 Level is at 89.60

So keep strict stop loss at 89/90 level        

ONE CAN TAKE SHORT TERM POSITIONS IN

1) Arvind Ltd @ 49 (P/49.88, R1/50.90, R2/52.03, S1/48.70, S2/47)                   

2) Suryalata Spinning @164/165 (P/163, R1/168, R2/173, S1/158, S2/153)

3) Kabra Extrusion @ 68 (P/68 R1/69.90 R2/71.20, S1/66.90, S2/65.20)

4) Graphite @ 99.60 (P/98.90, R1/100.83 R2/101.90, S1/97.80,S2/95.90)                 

Where: P is Pivotal value

             R1 is first resistance level

             R2 is second resistance level

             S1 is first support level

             S2 is second support level

Depending on market conditions put your stop loss levels at S2 values

Protect your gains

Thanks

Dr. Vasant Bele

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