Thursday, June 5, 2008
Market on 5 Jun 08
Today’s support and resistances are placed at 4450/4500 and 4600/4650. Since market has opened with a gap up, 4600 are good levels to short (primarily because market has been struggling to move up significantly beyond 4600) the nifty keeping stop loss at 4640 levels.
Most stocks don’t look bullish in the short-term from a technical point of view. For a long-term investor, ‘bargain’ buys should continue (though they run a risk of ‘bargain’ value becoming better!). For the short-term investor looking to go long in the cash segment, a better policy would be to wait for a definite trend to emerge once the bottom of this downtrend has been confirmed and then start buying.GMR Infra is in the oversold region (and yet never seems to have ever hit the bottom eh?). JP associates also is in the oversold region. Definitely worth buying at these levels. Maruti took a beating yesterday (expected) due to the fuel price hike. For those who are looking to enter/re-enter this stock, I would recommend waiting till it breaches its previous lows of 722.