As per the charts, Markets have a total of 4 major tops from 5130 to 5298. There are several minor tops though which clearly indicates the resistance Nifty is going to face going forward. However we are witnessing a lot of short covering and several long buildups in the market which might take the Nifty to 5140 – 5180 levels in this week. However we have seen the Nifty fall from these level too many times to ignore it and hence we advise you to continue to hedge your stock longs via a largely out of the money PUT.
Stock picks for tomorrow are:
1. Aban offshore – CMP 1325.4
Target 1350
Stop loss 1302
Day high of 1342.75 in the cash segment &1338.9 in the futures space. This stock seems to be facing significant resistance at the 1340 mark.
2. Bajaj Auto – CMP 1637.5
Target 1652
Target completed with a day high of 1703 in the cash segment & 1704 in the futures space.
3. Balrampur Chini – CMP 134.95
Target 137
Stop loss 132
Day high of 136.45 in the cash segment & 136.35 in the futures space.
4. Reliance – CMP 1097.8
Target 1111
Stop loss 1080
Target achieved with a day high of 1118.65 in the cash segment & 1118.5 in the futures space
There are a lot of Market gurus predicting 1180 on Reliance right now but those levels will come only if 1120 is crossed first and then 1150 is crossed. Both these levels i.e. 1120 & 1150 are going to act as superb resistances for this stock. So beware before entering the stock for short term basis.
PS: Tomorrow might not be the best day to go short.
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