WEEK GONE BY
Nifty traded during the week within a trading range of 4921-5077, fully respecting its current resistance of 5100 & support of 4900, and closed the week at 4945, down 138 points. The high of the week of 5077 was recorded on Wednesday and the low of the week of 4921 was touched on Tuesday. Nifty has closed the week at 4945, below its 5 days' average of lows of 4982, which is a bearish sign going forward.
WEEK AHEAD
Having closed below its 5 days' average of lows for the week, Nifty is getting into bears' grip with a downward target of 4700 for this expiry. However, the expectations of Q2 results coupled with ensuing Deepavali festival will enable nifty to respect its strong support of 4900 on closing basis during next week, and may even trade above 5000 towards the close of the week. The trading range for nifty for the week is likely to be 4890-5060.
STRATEGY FOR THE WEEK
1. If you are long, hold your long position to cover well above 5000.
2. If you are short, cover your position if nifty slips close to 4900.
STOCK RECOMMENDATION
Stay invested in mid/small caps shares because even if nifty may correct from current levels, only the large cap index shares may fall along with nifty. Take advantage of bear hammering going on in telecom shares, and BUY Bharti Airtel & Rel Communications on every dip.
BUY 3I INFOTECH (cmp 95) for a short term target of 120 by 31.12.09 & a long term target of 200 by 31.10.2010.
BUY ROLTA INDIA (cmp 185) for a short term target of 230 by 31.12.09 & long term target of 400 by 31.3.2011.
OPTION RECOMMENDATION
I have decided to stop giving options recommendations in my Weekly Reports & restrict the same only in paid blog Kadiyali Options. Those who are interested to become members of the said paid Options Blog may register their name by sending email to fiftypointsaday.blogspot.com, so that any slots available will be offered to those who have registered for the same.
STOCK PORTFOLIOS BLOG
As on date we have two blogs, i.e. 1) fiftypointsaday which is a free blog without any restrictions as to number of members, 2) kadiyali options which is a paid service restricted to only 100 members. We are now opening our third blog namely STOCK PORTFOLIOS BLOG, which will guide small investors to build their portfolios for a profitable investment. This blog though not a paid service is restricted to only 100 members. We have already received requests from more than 150 investors for an access into the said portfolio blog, and we are in the process of sending our invite to 100 members after a small screening. The blog will start on 14.10.09, and selected investors will receive their invite by the said date.
ANNOUNCEMENT
We have withdrawn the facility of comments by readers/visitors of this blog (fiftypointsaday) to make the blog more presentable to them. If any of the readers/visitors have any querries on my recommendations, they may use the platform of MoneyControl Message Board (MMB) by raising the querries to my id there 'kadiyali', and all those querries will be replied expeditiously if the querries are raised from genuine ids.
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