NIFTY MAY Technicals

Hello Readers,
IT's time to cheer up as markets are almost 3000 points up from the recent low of 14667 & last Friday made high of 17621 Sensex spot lvls. For Nifty the recent low was 4468 & on las Friday made high of 5298, almost 830 points up. The recent low was made on 18 March 2008 & just took one & half month for the come back.
So wht to do now ?????
BOOK PART PROFITS OR USE TRAIL STOP LOSSES
The markets are up by almost up by 20% in the recent short term run up from the bottom, at this levels we would like to advise our readers, visitors, clients etc to book profits @ current lvls or use trail stop losses to ur long positions.
As 20% index returns are not bad in such short span of time, this is for those who like to book profits but for those who like to stay in momemtum of markets can use Spot Nifty Trail stop loss @ 5100 closing lvls, b4 this trail stop loss was placed @ 4925 lvls.
Once spot Nifty closes below 5100 lvls then once can see short term profit booking or correction in the markets. We are saying to book profits as we liked to book profits @ regular intervals in markets, also we have technical reasons for that as pls refer chart posted here :-)
Still the momemtum us +ve in the markets & in this rally if we close abv 5350 lvls then markets can retest 5500 lvls & even abv tht.

Keep stock specific approach.

Last month April 2008 was full of result season & Many Indian Inc have come out with handsome results despite Crude @ all time highs & soaring inflations.

Techincal call updates :

On 29th Arpil 2008 we have our sms group members to buy HDIL @ 735 with sl 700 & tg 825 - 850, on 2nd May 2008 it has achieved its target of 850 & made highs of 860+ lvls.

NIFTY MAY Technicals

Nifty : 5228
Maximum Target for May: 5358
Support : 4978

Positive Point :

1)US Stock Market Rallies and Down Touches 13000
2)Yen Trading firm at 105.50/Dollar
3)Rupee Weakening agains dollar currently at 40.44 good for I.T Stocks
4)Recent Crash in commodities like gold ,silver, aluminium..etc

Negative Point:

1)Inflation at All time high at 7.57%. This may weaken Banking stocks a bit
2)Profit booking may happen in nifty stocks as there is rally of 600 pts in last 15 days alone

Nifty Stratergy
Nifty Traders are requested not to go for calls at current situation as RSI levels
are just near to the oversold situation. And peoples those who are holding calls are
requested to square of their holdings at higher levels. Our Nifty Maximum target remains at 5358.

One can short nifty at 5300 levels or 5338 levels for a target of 5128 and 5056 with a stop loss of 5386.And 4978 remains the great support for Nifty.

For Investors
Investors are recommended to use even a small dips to buy their stocks.Till now no panic signals are seen. And There is a small gap near 4990 which remain notclosed. If nifty reaches this point this this a huge oppurtunity to enter your favorite stocks.

Short Term Investors or requested to stick to I.T related stocks and to stay away from banking sectors till Inflation concers are over.