In the right direction

Dear Investors,

Market started in an upward direction but could not add to the early gains and closed the day subdued but in upward direction. Most of the day Nifty was ‘Quiet but Steady’

Except few large caps from metals, most of the large caps were laggards, but the broader market had good move all the day. Market turnover was very thin.

It looks like Mid Cap stocks will make a ‘Catch Up’ move for next few sessions and large caps will get consolidated before having a next leap, indicating that the markets are moving in the ‘Right Direction’

Traders can take positions in Mid Cap’ stocks. There are number of madcap at discounted valuations to their earlier top.

Technically:

Pivot For Nifty: 6160

R1 (First resistance) @ 6174

R2 (Second resistance) @ 6191

R3 (Third resistance) @ 6205

On 3^rd Dec 2011 Nifty just tested R2 (Read the blog dated 3^rd Dec)

S1 (First support) @ 6143

S2 (Second support) @ 6129

S3 (Third support) @ 6112

20 DMA (Day moving average) @ 5978
50 DMA (Day moving average) @ 6019
200 DMA (Day moving average) @ 5578

Short term or positional traders can carry longs till Nifty is above 20 DMA.

Medium term traders, (short term investors) can continue holding till Nifty is above

50 DMA.

Long term investors should hold the stocks till Nifty is above 200DMA.

STOCK SPECIFIC:

TISCO

STERLITE

HIDALCO

PFC

GUJ AMBUJA CEMENT

BIOCON (Investment call)

LUPIN (Investment call)

GLENMARK (Investment call)

BLUE STAR (Investment call)

GMR Infra (Investment call)

EMCO (Investment call)

Elecon Engg. (Investment call)

S. Kumar Nation (long term fundamental call

Himatsinka Sidek (long term fundamental call)

SURYALATA SPINNING (Momentum call)

Ashima Ind (Investment Buy)

Tilaknagar Ind (Short term investment call)

Suryavanshi spinning (Momentum call)

Polaris (Momentum call)

Rolta (Medium term call)

Tutis tech (Investment call)

FEDERAL BANK (Positional call)

YES BANK and

CENTRAL BANK

These are some of the mid and small cap stocks which are worth buying depending on your risk appetite.

It is advised to take ‘longer duration’ view than having ‘short term’ frequent trades, in that you miss the chance to get higher profits and end up with small gains in short period

IN SHORT PERIOD YOU GET PROFITS but LONG TERM HOLDING CREAT WEALTH

Go and grab the opportunity time is on your side

Thanks

Dr. Vasant Bele

Disclaimer: views expressed are mine, take your own investment decisions.