At the moment, the P/E ratio of nifty is 23.24, the VIX is at an all time low of below 15 (a gauge which measures the confidence of the general public, the lower the VIX the higher the creed) and the OI is at an all time high similar to NOVEMBER 2008. Yet we have the indexes making new 52 week highs week on week with stocks/sectors showing support on regular intervals. What is evident is that a larger correction is on the cards, but when it will happen is every ones guess, it could probably start with a big gap down trapping many on its way down. As of now try to have more cash than stocks in hand, follow the trend and trade long only in rising trend line stocks and avoid catching a falling knife (stocks which are still falling). Caution for longs below 5440. Support for the week comes in at 5435/5340/5285. Resistance for the week comes in at 5585 / 5640 / 5735
The stock is showing good signs of a fresh rally after a pullback and consolidation. It is trading near its key weighted moving average. Buy for a trading target of 28 with a stop loss of 25.75. Medium term investors can buy for a target of 33.
PUNJ LLOYD (115.95)
The stock appears to have made a short term double bottom and is now forming Hammer Candles which is a bullish signal. Buy for a target of 123 with a stop loss of 112.50
Sesa Goa (329.35)
The stock is trading below all its key moving averages and is seeing a lot of selling pressure on rise. Sell for a target of 313 with a stop loss of 339.
Aban Offshore (833.40)
The stock is trading below all its key moving averages. Derivative data suggest un-winding of lonk positions. Short for a target of 810 with a stop loss of 848.
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