WEEK GONE BY
As indicated in my last weekly report, Nifty closed the week 1)in negative 2)below 5050, at 4988, down 129 points. It also traded the week almost in the trading range indicated by me of 4980-5140 by trading in the range of 4979-5156. The high of the week of 5156 was recorded on Monday, and the low of the week of 4979 was touched on Friday.
WEEK AHEAD
Nifty will continue its negative bias for the week ahead, and will close the week in negative. Though the week will be a shortened week with only 4 trading days, nifty is likely to trade in a range of almost 200 points, and is likely to close below 4900. The trading range for the week will be 4830-5020. Expect a single day 3-digit loss for nifty either on Wednesday or on Thursday.
STATEGY FOR THE WEEK
1. For those holding longs, I had written in my last report " I had asked those holding longs to get out of longs when nifty touched 5180, and in fact nifty gave an excellent opportunity to book profits in longs at its peak. If still holding, get out of the longs when you see 5130 in this week." And nifty gave that missed chance again by touching a high of 5156 on Monday.
I recommend NOT to hold any longs for one more week.
2. If you are short, book profit in part if you see level below 4950 on Monday, otherwise hold the shorts till nifty falls below 4870.
STOCK RECOMMENDATION
My stock recommendation for the week is ABAN OFFSHORE (cmp 1163).
Aban Offshore - FV 2 - CMP 1163 - Life time High 5555 - 52 weeks High 1679 - 52 weeks' low 224. For the kind of operations of this company, its equity of 7.56 cr is very low, and makes it an excellent investment on SIP basis. Though market feared very big negative impact on this stock due to global recession, and the stock was hammered down to 224 in early 2009, the recession did not affect the actual performance of the company. It has only suffered due to heavy borrowings, which are likely to be brought down substantially in the weeks to come. The stock is all set to go beyong its current 52 weeks high of 1679 once its Singapore subsidiary gets listed.
BUY this share as a New Year Gift to your family. Buy 10 (or multiples) shares at CMP, and go on adding 2 shares (or multiples) every 10 days so long as it quotes below your BUY price. Remember my New Year Gift recommendation of INFOSYS last December at almost the same price of Aban now? Aban will outperform Infosys by next December.
OPTION RECOMMENDATION
Since, due to range bound trades, the Options recommended by me during last two weeks, ie. 4900PE below 45 for a target of 120, and Suzlon 85CA below 2.50 for a target of 7 have still not yielded the targetted price, I am skipping Options for this week. You may continue to hold the said two options if bought below the price indicated.
ANNOUNCEMENT
Our paid blog 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 regarding membership of our paid service Nifty SMS Group, email to fiftypointsaday@rediffmail.com.
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