4-Oct-2010

Due to unavoidable circumstances we couldnt deliver the weekly news letter for the past 7 weeks. We regret the inconvenience.

Outlook for the Week:

As predicted in July, both Sensex and Nifty moved above the crucial psychological resistance levels of 20000 and 6000 respectively. Nifty finds strong resistance above 6200 and hence one should look at booking profits at this juncture. Only a close above 6200 would prompt Nifty to extend the rally towards 6500. The global clues are strong going into the next week and we may expect a strong opening. Short term Nifty traders may sell nifty above 6200 with a day close stoploss above 6240 for an initial target objective of 5930. Markets would still trade stock specific with select stocks getting accumulated during the correction and witness sharp rallies.

BUY
IDBI @ 158-160 TGT 200 SL 150
SOBHA @ 390-392 TGT 442 SL 376
HINDUNILVR @ 308-310 TGT 322, 338 SL 302
OFSS @ 2290-2300 TGT 2480 SL 2250

SELL
RELIANCE @ 1035-1040 TGT 960 SL 1060
IDEA @ 75 TGT 70 SL 76