Market Strategy For 3rd Nov 2014

LIFE TIME HIGHS AGAIN AS JAPAN STIMULUS CREATES BUYING FRENZY; TREND CONTINUES TO BE BULLISH; A CONSOLIDATION IN MARKETS IS IMMINENT SO BUYING ON DIPS REMAINS THE STRATEGY; MARKETS MAY BE ENTERING THE EUPHORIA PHASE WHICH CAN LEAD TO BIG RALLIES AS WELL AS SUDDEN DECLINES

A ‘NOW OR NEVER’ RALLY STARTED TWO DAYS AGO, PUSHING NIFTY, BANKNIFTY TO NEW HIGHS WHILE THE CNX-IT IS RACING UP TOWARDS ITS LIFE TIME HIGHS. ‘NOW OR NEVER’ UPSWINGS ALMOST ALWAYS END WITH PAIN,

UNFORTUNATELY. WE REPEAT OUR SUGGESTION: TRADERS SHOULD BUY ONLY ON DIPS AND CONSOLIDATION, TAKE INTRA DAY POSITIONS.

Bank Nifty has seen a big up move on Friday and made another life time highs. Prices moved up and close higher above 17000 levels. The last 2 days are very wide range days so we may expect a little choppiness in next week with narrow price action or a minor dips. In a bull market, these dips and small consolidation are a buying opportunity. Look for a buying opportunity in this secto

CNX IT has seen a big up move today and prices closes higher. Prices are now trading near its resistance at 11500. A close above this resistance may give us another buying opportunity in IT Stocks. But if prices find resistance near 11500, then it should be treated as a profit taking opportunity

FINANCIAL Sector has seen a deep correction. After that prices have consolidated and breaks above the resistance. Suggest correction is over in this sector. LICHSGFIN, HDFC, PFC and RECLTD have already broken above from a base at its bottom whereas REL CAPITAL, IFCI and IDFC are at the verge of breakout. Look for a buying opportunity in this sector

SCRIP LTP DESCRIPTION NTPC 150.40 NTPC has seen a breakout from a consolidation and then made another narrow trading range. This range breaks above. Buy this stock above 151. If this trade executes then place your stop just below 148 with a target near 157. RELCAPITAL 473.95 RELCAPITAL has seen a deep correction. After that prices started consolidation and build a narrow trading range at its bottom. This range has seen a breakout and prices close above to this range. Buy this stock above 475. If this trade executes then place your stop just below 465 with a target near 49 RPOWER 76.40 RPOWER has seen a deep correction. After that prices started consolidation and build a trading range at its bottom. Prices are at the verge of breakout from this range. Buy this stock above 77. If this trade executes then place your stop just below 75 with a target near 81 VOLTAS 251 Trend is up in VOLTAS. Prices have seen a sharp fall. After that prices started trading choppy and build a large trading range. Prices have seen a breakout on Friday and closes higher. Buy this stock above 253. If this trade executes then place Your stop just 248 with a target near 263.