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.