Market Outlook 30/03/2009

Bulls have been on a rampage for 12 continous days. Rampage, c'est comme la mode !!!. Now that mutual funds have had their navs pumped, will we see a much wanted correction? As a die hard follower of fibonacci, i strongly believe that all trends can be deciphered from price action.

Nifty War Zone

Bull Level
On Monday nifty future has strong resistance at 3148 level. If it crosses, 3160, buy at retracement level 3140 with stoploss 3119 for target 3225.
Bear Level
On the downside, bears should be active below 3075. In such a case, sell at retracement level 3090 with 3113 as stoploss for target 3015.

Tracking the Sultan of Stocks


Reliance has made a reversal pattern on eod charts.




On Monday, if reliance breaks 1546, it will come under the grip of hungry bears. In such a scenario,short at retracement level 1552 with stoploss at 1586 for target 1484. If it crosses 1586, it will nullify the bearish pattern in reliance and it should go to 1631 in such a scenario. Stop Loss for long would be 1544.

For the eyes of Bulls Only.
Two much beaten down stocks have been capturing the nations long money. They have made avery significant bullish patterns on EOD charts.
1) RCOM - Anil Mania.





On monday RCOM can be bought at 173 with SL at 165 for targets of 197 and 207.
However RCOM has huge resitance around 184 levels. So this trade should be done in cash or options. This is a positional trade, expected to last 2 to 3 days.

2) DLF - Charts telling different story.


On friday DLF could not pierce through the resistance area at 185. On monday, it could very well do that. For monday, dlf can be bought at 175 with a stoploss of 168 for targets 190, 199.
Breaking 168 should result in dlf getting a bear attack which should take it down to 146.

Have a profitable trading day !!!!!!!!