Just Kissed 4950 and fell almost 100 points from highs, some respite for bears

Finally something for bears to cheer about or it could have been most talked about V- shaped recoveries if we would have touched a new intermediate high without consolidating or a correction. Nifty could not sustain above 61.8% level ( 4936 ) and fell 100 points. Analyst's comments on markets on business TV channels have left investors undecided on whether to invest right now or wait for markets to correct. If one of the Analysts, independent or with any firm will give targets of 12500-13000 on Sensex then other one will say that he can still see a 5-10 % upmove from these levels in short term. In this scenario when there is so much undecision one should pick good stocks and invest in a staggered and pyramid way so that the left out feeling is not there. I will post more about this strategy of investing in a pyramid manner during this week


Nifty view:

The supports for Nifty are placed at around 4780-4800 while resistance seems to be 4930-4950. A parallel channel is formed on the daily charts , after consolidating at the current levels Nifty should head towards the upper part of channel i.e. 5300. On the downside if the trendline which is placed at 4600 is broken, then we can see fall upto 4400 levels




Stock View: EDUCOMP

700 has been acting as a very good support for Educomp since last 4 months, if that holds then we can see a sharp bounce back otherwise stock will head to 550-600 odd levels in short term. And that level will be a very good level to buy for long term



Have a nice and wonderful trading day

Regards

Ankit