WEEK GONE BY
Despite trading only for 4 days in the shortened last week, Nifty traded in a range of more than 200 points, and closed the week at 5178, up 190 points, recording in the process its highest close of 2009, surpassing 5148 of 8th Dec. It also touched its intraday highest level of 5197 for the year. The trading range for the week was 4943-5197 with the low of 4943 recorded on Monday and the high of 5197 touched on Thursday.
WEEK AHEAD
Having bounced back by 190 points in just 4 trading days of the week, Nifty will trade the coming week (shortened with only 3 trading days) in a narrow trading range, and may close the week as well as the month's expiry between 5100-5150. The trading range for the week is likely to be 5080-5190.
STRATEGY FOR THE WEEK
1. If you are long, book out at immediate level of above 5150, and take Jan long position if you see a level below 5100.
2. If you are short, wait for a level below 5100 & book out, so that you can take a fresh short in Jan series during first week of the month at much higher level.
STOCK RECOMMENDATION
My stock recommendation for the week is SHRI LAKSHMI COTSYN (cmp 105).
SHRI LAKSHMI COTSYN - FV 10 - CMP 105 - Lifetime High 203 in 2007 - 52 weeks High 112 - 52 weeks Low 21. This company with a low capital of 14.80cr, with regular capex to increase the growth with borrowed funds, is all poised to record a topline of almost 1500cr for current year ending 06/10 with a growth of nearly 30%, and also a bottom line growth of more than 20%. Projected EPS for 06/10 on an enhanced capital of 20cr (by conversion of warrants issued) will be 30-35.
Watch the price of this company, and BUY at any level below 90 for a target of 200 in one year. Textile sector is a cyclic one, and the next boom is due any time now.
OPTION RECOMMENDATION
As only 3 trading days are left for this expiry, I am not recommending any Options for this week.
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