Dec 212011
 

Nifty(4544): We have a positive divergence on the intraday charts and the 4530 support has proven its strength for the moment. The SGX nifty is pointing to a nice 1.5% pop at the open.

Nifty hourly charts

Over the last several weeks there has been considerable amount price action around the 4720-30 zone. Watch for resistance to kick in this area. If market does stretch through this then expect the Friday high of 4820 to act as the supply zone. Due to holiday season, volumes could be thin and the year end window dressing by funds to prop up NAV may keep this market afloat for a while. Be flexible and stay nimble.

Resistance: 4720-30; 4820 and Support: 4530 and 4380

Open positions: Short Heromotors from 2025 (booked at 1938 and reloaded at 1910) and Short Indusind from 267 (partially booked at 239)

 Posted by at 3:17 am

  31 Responses to “Technicals 21st Dec 2011”

  1. BTW, if you any of you played the Reliance put spread strategy that I had sent as FYI (the one sent for CNBC) please book profits. It was not an official call, so not tracked.

  2. PERFECT SHORT CALLS INSPITE OF MARKET RALLYING 1.5% BOTH HERO AND INDUSIND ARE DOWN

  3. HI Jai,

    I am short in Idea at 84.0, will you please advice me on this position

    Ajay

    • Hi Ajay,

      The trend has turned lower but however the short-term pressure points are unclear. Over the medium to long-term I think Idea has a good chance of going back to 50’s or even the 30’s. Since the short term pressure points are unclear, I can only say it will not cross 103. IF it heads above 84 see if you can hedge or simple hold if 103 is not too far.

      Best,
      Jai

  4. Dear Jai,

    when and by what menthod u sent reliance put strategy as i never got it….

    Regards

    • It was by e-mail, 8th December. It was just an FYI, bcos I did not want to suggest something to CNBC and my subscribers not know about it. I can see it is in my sent folder, you are on it .

      Best regards,
      Jai

  5. Hi Jai

    Sorry for tossing you a new stock everyday and asking you for your opinion. Any views of Jet Airways…..

  6. hi jai,
    this is regarding your sms to cover hero around 1767 – 1770, is it cover entire position or for multiple short cover half the positions and carry the other half for lower position of 1450? kindly advice
    regards

    • Im looking to reshort around 1870-1910. There is no harm in leaving a contract or 2 open for 1450. IT will update – looks like may be sideways to slightly up till Jan.

  7. jai one more thing your view’s on IT as earlier you had mentioned about IT sector turning lower has that time come

  8. Dear Jai

    i m short in JP @54. What should be the stop loss and target? sorry for the inconvenience caused if any.

    • Jp over the medium term likely to hit 36. It should not have broken 52 but short term may get choppy SL 62 if short

  9. jai,
    i missed out on covering hero it had already gone up still holding on the shorts, can i double up on higher levels as u mentioned at 1870 – 1910

    • Hi Shabbir,

      The idea of getting back in around that level is bcos, we have a cushion(bcos we booked), I do not know if you should add – that will be your judgement call. As of now Hero looks like it will get to 1450 in say in the next 4-6 weeks.

  10. Jai,

    Great view, simply great. Perfect entry and exit levels.
    Once again I would like to raise the issue:
    Do you have a direct link with some ET power? 🙂

    People, stop being greedy. Take the money as you get it and enjoy. Tomorrow is another day.

    Cheers.

  11. jai any views on buying current month 4600 puts?

  12. jai,
    if by any chance in a day or two hero drops below today’s cover price of 1760, should i cover or hold the shorts for lower target since i was unable to cover today
    regards

  13. Dear Jai,

    From a longer term horizon of 4-6 months or even more, where do you see the markets heading? If I start buying in small quantities now to build a equity portfolio for long term investment (alongside trading), has the time come? i.e., if the markets can only go down 10-15% from here, perhaps it could be a good idea to start buying in small quantities from now – what do you say?

    • Dear Parag,

      May be consider an SIP, I think even that might be too early. I have contented from January of 2011 that the 2009 lows are at risk. Instead of buying on the way down, I say buy on the way up. We will only miss 5% of the move in that case and you will not have any MTM against you and your capital is free until that point (can work +vely in FD or some fixed income)

      Cheers,
      Jai

  14. thx a lot jai for Heromotors and Indusind shorts….i have booked samsung galaxy note

    • I wish there was a thumbs up symbol Sara 🙂

    • hai jai as u told eariler “Hero looks like it will get to 1450” which put option shall i take ..pls guide me

      • Hi Sara,

        Unfortunately puts are not liquid enough in Hero – sometimes the options market in India is so irritating, unless they bring about physical settlement the liquidity in options will be there only for Indices and select frontline stocks.

        Best regards,
        Jai

        • Jai,

          Thinking – Maybe we are being a bit pre-emptive here. By shortng now, we may have to bear the pain of watching the move till stoploss. It may be a better idea to wait for the up move to show signs of exhaustion and then re-enter short positions. Do you think that might work better?

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