Markets moved up for second consecutive week with good volumes. Weak Oil prices, strong global markets, falling interest rates and fast declining inflation helped markets stage a strong bounce back. Participation was seen across sectors but prominent among them were Realty, Banking, Power, Cement and Technology. Unitech and HCL Tech were at top of the gainers list with 30% rise. Siemens, Ambuja Cement, ICICI Bank, Grasim, HDFC Bank, Powergrid, Suzlon, M&M, DLF, BPCL, PNB, NTPC, HUL and ONGC were other gainers, all richer by anywhere between 10-20%. Satyam Computer, RCOM, HDFC and Reliance Infra were among the top losers.
We are heading into the crucial week as far as the market direction is concerned. We feel that markets and many individual stocks will create short/medium term peaks during this week and start reversal. We might see some short covering rallies before this expiry on Wednesday. Nifty faces resistance at 3160 and further at 3250. We recommend traders to build aggressive short positions for January by the end of the week and maintain positions till January expiry. A sharp correction to the levels of 2600 is not ruled out in January. Get out of all long positions by the end of this week. A trader should have open short positions by the end of the week. The fall that we witness in January will be steep and hence do not book profits on short positions in a hurry.
SELL
GT Offshore Sell @ 238-240 Tgt 218, 204 SL 244
Jindal Saw Sell @ 246-248 Tgt 231, 212 SL 253
HDFC Sell @ 1555-1560 Tgt 1460, 1400 SL 1580
Aban Lloyd Sell @ 760-762 Tgt 695, 660 SL 776
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