Book Profits if u bought at lower levels, Avoid fresh longs in Index at these levels. Midcaps/Smallcaps to play catchup

After the bounce back of more than 300 points on Nifty from the low of around 4700 it is advisable to square off your positions if u got a chance and had cash to enter at lower levels. Now try finding out stocks/sectors which have underperformed the markets & are likely to play the catch up game for the coming days.


Nifty View:

As we see on the charts there is a higher low formation everytime Nifty corrects and this pattern is being observed since August 2009, once this pattern gets voilated then we may get to see a larger type correction. Meanwhile this bounce back is likely to stop at 5060-5080 as 5060 is 61.8% retracement of the entire fall from 5300 to 4675. On the downside 4970/4950/4920 will act as supports. Avoid fresh longs in the index at current levels.




Stock View: Gtlinfra

Gtl Infra stock is witnessing a triangle like formation since past 2 months and is likely to breakout in near future. The stock can be bought above 44 with a stop loss of 41.5 for targets of 47/49 OR the stock can be accumulated between 41-43 with a stop loss of 39.5 for targets of 45.5/47. Do exit the position if stoploss in any case gets triggered.




Have a nice trading day

Regards

Ankit