contd from pg 1..

Q: You had a look at Gujarat NRE Coke ’s chart?

A: I think it outperformed throughout February and quite surprising, I guess because of the coke prices internationally. But now it’s giving in with the rest of the market. It’s at that crucial level Rs 124-121, the monthly charts hasn’t broken down even thought it has fallen from Rs 181 levels. It can give you a trading bounce this week since it is at a major support level.

Maybe back to Rs 135-145 could be a nice trading bounce. But if one is doing that keep a stop loss at Rs 120 because if it breaks Rs 120, then it’s headed back to Rs 100-102 levels. So that could be a trading bounce this week.

Q: What’s a good trade to take now 4,600 is it a no trade zone, or can you initiate a trade here?

A: I think it’s a no trade zone because the upper target is closer to 4,800 and the lower stop loss is not before 4,448, so it’s too much of a range right now on the down side and on the upside. So I will probably stay out for sometime.

Reliance is the key for this market. That has been the leader for the last 6-8 months and it hasn’t broken as significantly with rest of the Anil Ambani stocks but it is very crucial for Reliance now. The reason being  it touched Rs 2,120 on January 22 and Rs 2,120 was tested twice in the last ten days, so I have heard of double and triple bottoms but there is no such thing as 4-times bottoms. If it breaks Rs 2,120 then this stock can really be a major drag on this market, so I think watch out for Rs 2,120 and Reliance is going to be very key this week, for this market.

Q: The two stocks, which have had some controversy, attached to them off late Orchid at Rs 120 and JP Associates just managing to keep its head above Rs 200?

A: I think Orchid has become very weak, I probably wouldn’t touch that stock right now, If a stock falls 40-50% in two days, obviously the charts get badly destroyed. So at every rise one will see enough selling pressure out there and probably it is a stock to stay away from.

JP Associate could be a good trading stock I think Rs 190-200 is a major support zone for that stock so every time a close to Rs 200 we get a bounce of Rs 10-15. You could trade that stock keeping a stop below Rs 190 because if it breaks Rs 190, then it could really fall upto Rs 153 also but it is right at the support level, so anywhere close to Rs 200 could be a trading bounce.

Q: For short-term traders do you think it’s worth shorting the market after this bounce of 50-60 points on the Nifty or is that a risky trade?

A: I think being expiry, I don’t think there are too many shorts in the system and that’s why I think this market is struggling to make more than one-day higher upmove.  The shorts are intra-day created and by the end of the day and the premiums itself suggest that they come to cut and not wanting to take any risk of what will happen in the US. But I think if the market is little bit short and if it pulls up because of F&O expiry, I think it is somewhere closer to 4,800 and it would be a nice shorting opportunity.