WEEKLY REPORT ON NIFTY BY kadiyali - 05.12.09 (Saturday)

WEEK GONE BY

Nifty recovered smartly from its previous week close of 4941 to close the week at 5109, up 168 points. The opening level of 4942 of Monday was the low of  the week, and the high of the week of 5181 was recorded on Thursday. Nifty having resecured the 5100 level on Tuesday, managed to post a close above 5100 for the last 4 out of 5 trading days of the week with a close of 5122, 5123, 5131 & 5109.

WEEK AHEAD

Nifty having failed to surpass its previous high of the year of 5182 in its three attempts last week, is all set to surpass this level during the ensuing week  on intraday basis. However nifty will not get a close above 5182 and will post a negative close for the week below 5100. The trading range for the week will be 5010-5190.

STRATEGY FOR THE WEEK

1. If you are long, book out of your longs whenever you see a level of 5180, and buy 4900PE below 45 only out of your trading profits.

2. If you are short, hold on to your shorts with SL at 5210 nifty spot closing basis.

STOCK RECOMMENDATIONS

My Stock Recommendation for the week is PASUPATHI ACRYLON. FV 10. CMP 7.60. Due to continuous rise in prices of its end product of acrylic yarn by more than 25%, the company has been able to post jump in its quarterly results.  With a N/P of 18cr in Q1 and 12cr in Q2, the company is all set to post a 50cr+ net profit for 03/10 against a capital of 71cr. Target for this stock is 15 by 31.5.2010.

OPTION RECOMMENDATIONS

Watch the premium of Nifty put 4900PE (cmp 55). BUY Nifty put 4900PE  below 45 for a target of 120.

Pl note to buy any options only out of your trading profits & not out of capital due to inherent risk involved in option trading.

ANNOUNCEMENT

Kadiyali Options Blog will cease to be a paid blog w.e.f.1.1.2010. The access to the options blog from the said date however will be restricted to our Nifty SMS Group members on complimentary basis. The existing members of the blog will be treated as members of our Nifty SMS Group upon renewal, and complementary access will be issued to them to options blog. Similarly the existing members of our Nifty SMS group will also be issued complementary access to the blog against any vacant slots on the basis of their date of joining.

With the above step, all our 3 blogs will become free (non-paid) blogs: 1)fiftypointsaday blog free without any restrictions regarding number of visitors, 2)stock portfolios blog free for the first 100 members on our invitation, and 3)kadiyali options blog free for the members of our Nifty SMS Group with complementary access issued to them on the basis of their date of joining against any vacant slots.

Those who become members of Nifty SMS Group on or before 31.12.09 are likely to be accomodated with a complementary access to options blog. For further details, email to fiftypointsaday@rediffmail.com.