Saturday, February 27, 2010

WEEKLY REPORT ON NIFTY BY kadiyali - 27.02.10 (Saturday)

WEEK GONE BY

Nifty remained locked in a tight range for the first 4 days of the week due to matching strength of bulls & bears. However, the Union Budget on the last day of the week gave the bulls an edge, and nifty rallied almost to 5000. Due to profit booking in the last hour's trades ahead of a long weekend, nifty closed the week at 4922, up 77 points. Nifty nearly traded in the range indicated by me in my last weekly report by trading in a range of 4833-4992 against the range of 4810-5020 given by me. The high of the week of 4992 was recorded on Friday, and the low of the week of 4833 was touched on Tuesday.


WEEK AHEAD

Having been able to close the week in positive territory for the last 3 weeks, and also having recorded a monthly positive close now, Nifty will surge further though slowly, and record yet another weekly positive close. Monday being a trading holiday, we will see one more range bound week. The trading range for the week is likley to be 4880-5040.


STOCK RECOMMENDATION

My stock pick for this week is PROVOGUE (INDIA) LTD.

Provogue (India) - CMP 49 - FV 2 - EQ 23 Cr - 52 Weeks High 75  - 52 Weeks Low 26 - Life time High 292 -  EPS for 03/09 Rs 2.53 - Estimated EPS for 03/10 Rs 3.20.

BUY this share for long term investment & enjoy a new life time high beyond 300 in 2-3 years.


OPTION RECOMMENDATION

My Options pick for the week ahead is Nifty Call Option 5000CE (cmp 88). BUY this option below 70 for a target of 120-150.


NIFTY SMS GROUP TRADES


                                              Feb 10     Jan 10     2010

A. Total Trades:                 16             15            31

B. Winning Trades:            13           11           24

C. Losing Trades:                  3             4              7

D. Points Gained:            338          283         621

E. Points Lost:                     53            57         110

F. Net Gain:                        285         226         511


   

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