TEST of PATIENCE

  

 Dear Investors

It was most choppy day in stock market. It started with bang, continued for some time and suddenly ABORTED in the afternoon to close below 6000. Intraday Nifty tested 6045 on higher side and 5991 on lower side before closing at 5998

It was CHINA and EUROPE causing damages to Indian markets along with some of the expert views regarding US going ‘JAPAN’S WAY’, And so on. Market sentiment has becomes so weak that any small news makes it jittery.

Most encouraging thing from technical angle is the PIVOT’ for Nifty is making higher high and the R1(First resistance)and S1(First support) are also making higher tops and bottoms indicating short term UP TREND, but the question is ‘HOW LONG WILL IT CONTINUE?

Market is ‘Testing patience’ of ‘Bulls as well as Bears’ one has to be very cautious in initiating trade on any side., as in such ‘Tight Situation’ Nifty may break by 100/150 points on any side. In such circumstances either all the positions should be with strict stop losses or ‘Stay away ‘from market. Enter only when a definite trend emerges.

Technicals for 28^th Dec 2010

PIVOT is @   6011

R1 (First resistance) is @ 6031

R2 (Second Resistance) is @ 6065

R3 (Third resistance) is @ 6085 (Trend Decider)

S1 (First support) is @ 5977

S2 (Second support) is @5957

S3 (Third support) is @ 5923    (Trend Decider)

On daily basis Nifty should cross yesterday’s high of 6045 with volumes to encourage ‘BULLS’

And

Nifty should not break yesterday’s low of 5991

 This is like getting ‘caught in tight spot’, it is so.

 FOR 28TH DEC.2010

Consider following stocks for trading and or investment purposes

ITC

TISCO

STERLITE

SESA GOA

HINDALCO

ASHOK LEYLAND

MPHASIS BFL

SABERO ORGANICS

SREE RAYELSEEMA ALKALIES

SURYALATA SPINNING

HERCULES HOISTS

PUNJ LLOYED

HAVE PATIENCE

Thanks

Dr. Vasant   Bele

Disclaimer: Views are mine, invest on your responsibility