WEEKLY REPORT ON NIFTY BY kadiyali - 23.01.10 (Saturday)

WEEK GONE BY

As indicated by me in my last weekly report, nifty came out of its 5200-5300 range, and traded in a wide range of  more than 200 points (in fact 338 points), and recorded a negative weekly close. Nifty closed the week at 5036, down 216 points.  The trading range for the week was 4954-5292, with the high of the week of 5292 recorded on Monday, and the low of the week of 4954 on Friday.  Nifty having secured a close above 5200 continuously for 14 trading days since 31.12.09, has now closed below 5100. 

WEEK AHEAD

Having fallen by more than 300 points from its peak of 5310 in a sudden jerk down in just 3 continuous trading days, nifty is likely to show some pull back towards 5100 in the week ahead, but may remain rangebound at 10-20 points below/above 5000-5100 range for the shortened week of only four trading days, and may close the week NEAR FLAT. The trading range for the week is likely to be 4980-5120.

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STOCK RECOMMENDATION

Since further direction of nifty is now dependent on global cues, I dont recommend any stocks for this week. However, the stock prices of my Potential Multibaggers may be constantly watched, and stocks may be bought/added, if any of these shares fall below the price mentioned against them:

1. ARVIND - FV 10 - Below 30.

2. BALAJI TELEFILMS - FV 2 - Below 45.

3. NTPC - FV 10 - Below 200.

4. ATLANTA - FV 10 - Below 120.

5. GARDEN SILK - FV 10 - Below 65.

6. SUN TV - FV 5 - Below 340.

7. AMRUTANJAN - FV 10 - Below 450.

8. EVEREADY IND - FV 5 - Below 60.

9. VADILAL IND - FV 10 - Below 70.

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OPTION RECOMMENDATION

Last week, I had recommended Nifty Put Option 5200PE at 46 with a target of 100-150, and the said option went beyond 200 on Friday.

This week my Options pick is Nifty Call Option 5000CE (cmp 59).

BUY* Nifty Call Option 5000CE (cmp 59) below 40 for a target of 90-120.

*Due to inherent risk involved in Options Trading, options buying may be done only out of trading/investment profits, and not out of capital.

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NIFTY SMS GROUP TRADES - JAN 10

                                              22/01/10       15/01/10

A.  Total Trades:                11                        6

B.  Winning Trades:            9                        5

C.   Losing Trades:               2                         1

D.  Points Gained:            193                     85

E.  Points Lost:                     28                     14

F.  Net Gain:                        165                     85