All near supports breached.
NIFTY has breached tight congestion zones. What next? The strong pull back at close shows that the bottom is formed for the time being. With the Daily histogram going deeper a pull back is an opportunity to short.
Financial turmoil in Europe gains more momentum with Portugal on the sidelines for a possible downgrade. Riots in Greece over financial mess shows that weakness is likely to continue. This weeks close is crucial for NIFTY. A close below 5060 would turn the weekly charts to bearishness.
Wait for an opportunity for NIFTY to reach value zone close to 5200 levels and tick down to short on daily chart. Hourly charts short trade has not gained much today, but continues to be in short. All the indicators on the hourly chart are strong on the bearish side.
TECHNOLOGY, HEALTHCARE and TELECOM Sectors were strong in the weak market today. These are the sectors that pulled the index from lows today. BASIC MATERIALS was the weakest sector today. Steel Pig Iron & Sponge Iron Industry took a plunge with close to 4% erosion of value on its Index.
Calls for today.
Long stocks:
HDFC, above 2811.50, stop at 2783.90 with a trailing exit.
AXISBANK, above 1251.65, stop at 1219.40 with a trailing exit.
PFC, above 276.50, stop @ 267, trailing exit.
ADANIENT, above 570.60, stop at 558.80 & trailing exit.
RNRL, above 69, stop at 67.50 & a trailing exit.
SYDICATE BK, above 92.90, stop at 87 & trailing exit.
Short stocks:
CAIRN, below 295 with 317.90 stop.
HDFCBANK, below 1880 with 1984 stop.
RPOWER, below 151.60 with 163.50 stop.
UNITECH, below 76.55 with 83.40 stop.
RCAP, called for short reached target today. PFC, triggered stop and has given re-entry signal. BPCL and HINDPETRO are going strong.