WEEKLY REPORT ON NIFTY BY kadiyali - 05.09.09 (Saturday)

WEEK GONE BY

As indicated in my last Weekly Report, Nifty gave up a part of the gains of its previous week, fell below 4600 level, before bouncing back, on the last day of the week aided by short covering, to almost  4700 level. It closed the week with a negative close at 4680, down 52 points. The high of the week of 4735 was recorded on Tuesday, and the low of the week of 4576 was touched on Wednesday. The continuous bear pressure for all the 5 trading days of the week could not breach 4580, which proved as a crucial support.

WEEK AHEAD

Having failed to break its tough resistance level of 4750 for the last 2 occasions, Nifty will make one more attempt next week to break this level. Though fundamental factors support this breach, the continuous sell off by FIIs is a big concern in tune with global perception of September month being the worst month of any year for stock market. Nifty is likely to trade next week in a range of  4540-4750, before closing the week in NEGATIVE with a loss of another 50 points.

STRATEGY FOR THE WEEK

1. If you are long, reverse the longs into shorts when nifty approaches 4750.

2. If you are short, hold the short till 4550.

3. Accumulate nifty puts 4400PE during every dip below 20.

STOCK RECOMMENDATION

Nifty level of 5000 is a near term certainty now, and if not in this expiry, we will see the Muhurat Trading this Deepavali with crackers amid nifty 5000 levels. So stay invested in mid cap stocks of your choice, and add to your portfolio further midcaps in every dip of nifty below 4400 till it reaches 5000. Fall below 4350 will not come unless & until nifty goes past 5000 level.

BUY SUNTV (cmp 272) & accumulate on every dip for long term. Target 500 by 31.03.2010.

OPTION RECOMMENDATION

Watch the premium of Nifty puts 4600PE (cmp 91). BUY the same below 60 for a target of 150.

ANNOUNCEMENT

Fiftypointsaday announces starting  of PAID SMS GROUP for Nifty Futures Trading Calls very shortly. It will be a paid service with an one time membership fee & monthly subscription fee. Under this service, NF Trading Calls will be sent to members by SMS on days when our team spots opportunity to gain FIFTYPOINTSADAY. Those who are interested may contact by email to fiftypointsaday@rediffmail.com. Early Bird Discount is available for first 50 members.

Members of Kadiyali Options Blog will be taken as automatic members of this SMS GROUP with a waiver of membership fee for them, and they will also get free calls for the period already informed to them. So they need not contact again for membership of SMS GROUP.