Analysis for 21st June, 2011

There was panic in the markets...First it was GTL and then the Mauritius Treaty news led to a crash and the nifty nosedived to 5195 making a double bottom as the earlier low was 5178. The nifty then recovered but closed in the red down more than 100 points. The crash was akin to a panic where all stops get triggered and the brokers are forced to liquidate positions due to margin calls. Nobody could actually understand why the markets were falling as it was not an overnight affair to change a treaty between two countries and would require months of negotiations. But this is how panic bottoms are made. A break of this double bottom would eventually take the nifty to 4970-4680 levels even if there is some rally after the break in. However, if the double bottom is not broken then we could see a good 250-300 points rally on the nifty. The markets are oversold and buying in dips would be the best strategy for the immediate short term. Banking stocks fell less compared to the rest of the market so they would be a better bet.

Acc wait for a bounce to short again. Partial profits booked as a double bottom was made at 920 and also the fall was too steep.
Ashok Ley reduce stop to 50 and book profits in dips
Axis Remember our stop is 1200 and the low made was 1201. Hold for 1275
Bank of India shorts not initiated as 406 was not broken
BPCl partial positions open got stopped.
Bharti wow stock...Did not break 365 and now is moving to capture the 400 mark.
BHel 1890 held on.
Cipla longs got stopped. Still a buy in dips stock with 290 as stop
Ambuja Cem above 129 stop 125 buy for 138
HCl bounce looks certain
HDFC double bottom at 625
Hindalco Got support at our level of 162. Use 160 as stop to buy for 180
IDbi stopped
IDFC stopped
IOb partial open got stopped
KOtak 430 did not break
LIC Hsg partial open got stopped
Lupin profit booked
Mphasis profit booked
Raymond profit booked
Reliance highly oversold. Buy in dips.
Tata Motor Buy in dips with 890 as stop for 1000
Tata Steel longs not initiated as 575 not taken out.
JSPL 600 crucial
Punj stopped by 90paise
Yes Bank above 293 stop 290 buy for 300-305

Happy Trading!!!