RIGHT PRESCRIPTION ?

Dear Investors,

  On Friday 24^th December, Nifty after going through the lower levels of 5940 closed at higher level of 6011, this shows the inclination of bulls to push the markets to higher levels before the end of 2010. Though the domestic conditions do not favor it, the world conditions are to great extent supportive, especially US and EUROPE, Most of the world markets are at tow year’s high level, China and Brazil are on the verge of breaking in next few days. US data for Manufactured Goods is positive; the world MSCI index is near its top

Situation is ripe for speculators and punters to prop up the markets as major FIIs and FUND managers are on holidays across the world, there is no one to sell. The domestic institutions (DI) AND Fund Managers may try to jack up the market but…

For a sustainable up move Nifty must sustain 6003 and cross 6038 levels (First Resistance) where there may be a bout of ‘Short covering’ which will enable Nifty to test 6066(Second resistance). Once these hurdles are crossed Nifty can have a look at most important resistance of 6115  

It may be difficult for BULLS to have a straight run as

1)     It is expiry week , which may cause wield swings and volatility

2)     Profit booking at every higher levels by retailers

3)     Few short positions in market, and thin volume trades in last week

Indicating that, there are fewer positions on either side.

      4) Crude closing at 90 $ barrels, threatening Food inflation number etc.

     Then what next?

So while positioning one has to be very careful and follow the ‘Resistance and Support’ levels very strictly

NIFTY PIVOT FOR 27^TH DEC is at 5989

R1 (First resistance) is at         6038

R2 (Second resistance) is at    6066

R3 (Third resistance) is at       6115

S1 (First support) is at               5961

S2 (Second support) is at           5912

S3 (Third support) is at              5884

Market Status is Short term bullish. If you look at the weekly technical of market ,the Bearish trend started  earlier has not yet nullified. I would look for a weekly close above 6030-70 for the weekly chart to go back to bullish mode.

Market strategy:

Short term traders can buy in declines as long as NIFTY trades above5912

Level

Short term traders can book profits if Nifty reaches at 6066 and wait to see if Nifty cross over to the immediate resistance level of 6089.Closure above 6066 should encourage new buying and carrying forward the longs.

STOCK SPECIFIC:

TATA STEEL

SESA GOA

STERLITE

ITC

INFOSYS

RANBAXY

SUNPHARMA

UNITED PHOSPHEROUS

MPHASIS

SREE RENUKA SUGAR

BLUE STAR

GODAWARI POWER AND ISPAT

GEODESIC

GRAPHITE IDIA

HERCULES HOISTS

ATLAS CYCLES

NIIT TECH

CAMPHOR AND ALLIED

ARVIND MILLS

SURYALATA SPINNING

SINTEX INDUSTRIES

V GUARD

EMCO

All at 24^th closing values, with strict stop loss at b5/7% down levels. Investors can carry forward positions till the last support level for Nifty at 5884

HAPPY AND PROFITABLE ‘2011’

Thanks

Dr. Vasant Bele

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