WEEK GONE BY
Nifty opened the week with a negative gap, and was subjected to heavy selling by bears almost throught the week, but the support level of 4350 indicated by earlier proved to be solid, and nifty managed to close the week above the psychologically important level of 4500, though with a negative close. It closed the week at 4528, down 52 points. The high of the week of 4538 was recorded on Friday nearer to closing hours, and the low of the week of 4353 was touched on Wednesday.
WEEK AHEAD
As indicated in my Strategy for the Week last week, nifty finally managed to recover from its solid support of 4350, and posted a close above 4500. It will continue the uptrend though with lot of valatility this week due to this being the expiry week. The trading range of nifty next week is likely to be 4520-4750.
STRATEGY FOR THE WEEK
1. Stay invested in cash shares.
2. Calls above 4800 & puts below 4500 will be on the losing side this week.
3. Encash your profits as early as it is seen for both 4500/4600 calls & puts, and wait for a lower level to rebuy.
STOCK RECOMMENDATION
Buy GARDEN SILK (cmp) 80 for a target of 300 in 3 years. A sure MULTIBAGGER in 2-3 years.
OPTION RECOMMENDATION
Watch the premium of 4600PE (cmp) 99, and 4500CE (cmp) 87. BUY 4600PE below 30 for a target of 60. Once target is achieved, both these options should be commanding almost same price, and so convert 4600PE into 4500CE at that time, and hold the latter till expiry.
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