May 30, limited down move, no need to panic.

NIFTY/SENSEX after a sharp upswing, in the early part of trading, came in for profit taking in view of the fixed upper limit for the day and succumbed to selling pressure of the day-traders in the last part of day. Auto stocks, contrary to my expectations continued to move in the southern direction.The down move, however, appears to be limited. The NIFTY/SENSEX is not likely to fall below 4755 and 16040 respectively.The market is liekely to move into a congestion zone for next couple of days. Cover short, on further decline, in stocks from BANKING sector. BANK NIFTY will not fall below 6380. Smart traders can take up long position, on furher decline. for holding period of 2-3 days.

MAY 29, Recovery to continue, focus on AUTO STOCKS

The trading on 28th MAY was in line with the expectation made in this blog. Lower levels did attract fairly good short covering which resulted into a smart rally in the later half of trading. NIFTY/SENSEX will continue to recover under cautious optimism with upper limit for the day around 4980 for NIFTY and 16820 for SENSEX. Stocks from BAE AUTO, METAL, OIL&GAS segment can be expected to attract short covering at the lower levels.Stcoks from HEALTH CARE, IT and TECK sector will continue to remain better.Maintain the trading volumes at lower level and do book partial profits on larger intra-day swings.

NIFTY/SENSEX close to near term bottom for MAY28, 2008.

The trading activity on Tuesday,27th MAY 2008 generally remained in favor of sellers. NIFTY and SENSEX are near the minor term bottom and are not likely to move below 4805 and 16090 respectively. An upmove above 4902 in NIFTY and 16360 in SENSEX can trigger a minor rally lasting for 2-3 days. Stocks from HEALTH CARE, IT and TECK secors will gain further upward mometum. Cover short on, further declines, if any. Aggressive buying is , however, not recommended

Short term trend remains weak for MAY 27, 2008

NIFTY and SENSEX did attract moderate intra- day support near 4865 and 16350 respectively. The market is still in the control of short term sellers. Hold short in NIFTY/SENSEX with stop loss above 4955 and 16530 respectively. NIFTY/SENSEX are likley to attract intra-day support in the range of 4810-4780 and 16220-16180 respectively. Avoid averaging loss making purchase positions. Stocks from BSE HEALTH CAREand IT sectors are likely to develop some fresh buying by short term traders near the current levels.

Short term trend down in NIFTY/SENSEX

Short term trend remains down. Hold shord in NIFTY with stop loss above 5060 and a target of 4865, 4830. Hold short in SENSEX with stop loss above 17010 and a target at 16350, 16260. The stop loss and target are valid for one day on 26th May 2008. Pharma stocks may witness nominal recovery on Monday, 26th May 2008.