As expected the markets virtually were in no mood to recover and extend the gains from yesterday's rally, all in all one of the worst days in market for traders and investors.
Nifty saw fresh short positions built up and profit booking in huge volumes. Nifty losers were lead buy Hindalco and Jai corp. though Gail extended good gains.
Indian Markets started on a soft note followed by global cues, Hangseng collapsed leading to the downfall of many Asian indices.
I had written in my previous letter break below 4850 could lead to panic and we could see nifty drifting lower and lower on account of weakness, Nifty touched an intraday low of 4824 before closing near 4838 down 88 points from previous close.
News: Increasing food inflation a cause of worry and uncertainty over the budget allocation loomed large on the sentiments.
SenSex (prov): 16,225 down 272 points, Nifty (prov): 4838 down 88 points.
As recommended Nifty below 4900 it can test 4867, it happened the same way and Nifty crashed by more than 66 points towards the end.
Our Recommendations for today:
Astec Life: from 68 to 72
Ultra Tech: from 963 to 958
ABG ship: from 338 to 345
Infiniti Comp: from 207 to 211.5 then made a high of 218
Havells India: from 562 to 579 then made an high of 583
Gujrat gas: from 262 to 264.5
Zandu Pharma: from 4600 to 4750
Only Resurgere mines did not perform well and also missed the target by 20 basis points.
Stocks to watch on:
We mentioned ABG, Astec and Educomp for previous day and all three gave huge opportunity for trades. Tomorrow watch DLF, Advanta and Think soft.
In fact I would suggest our members to stay cautious on Thinksoft ltd. as stock has touched an all time high of 501, the reversal of the stock can happen any time when one starts exiting this counter.
Stock to buy for Thursday:
Buy Rajesh Expo above 111 for the targets of 112.5 to 115 SL 109.
Nifty for Friday:
Nifty seems to be in complete bearish trend as any pull back is short lived and fresh short positions are getting built up, on the downside if Nifty breaks 4790 it could lead to a further down fall up to 4760 then 4710. On the upside Nifty needs to close beyond 4950 for any significant upside.
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