MARKET TAKING SUPPORT AT TREND LINE

look at attached chart. we have taken support at 34 dma and trend line. we must move up from here to maintain uptrend for targets of 15100-15300.

market status

yesterday we saw profit booking from 61.8% retracement zone as it was advised. today now we r near very good support zone betn 14526 and 14608. low so far is 14565 and current is 14600. we can see bounce from here. and it may be a last upmove towards 15100-15300 zone.

stock to watch godrej ind cmp 142.5

buy godrej ind for short term investment cmp 142.5

 

stop loss 135

stock to watch BOC INDIA cmp 148

BUY BOC INDIA AT 148.
it is a call for investors with patience.bcz its an illiquid counter with very high promoter stake apprx 90%.
stop loss of 142 can be kept. co had done buy back at 200 rs .

short term trading DCB cmp 39.5

buy DCB for short term trading cmp 39.5

stop loss 35

target 1 rs 41

target 2 rs 43

MARKET OPTIONS - WAVE C OPTION

we have seen two bullish options on 23.06.09 in thread http://pankaj564.blogspot.com/2009/06/market-options.html.

i will like to discuss here one bearish option which is also highly probable option if we make a lower top than 15600 and start correcting again.i have attached chart for the same.

 

wave details :

 

A 21206 to 7697

Ba 7697 to 10945

Bb 10945 to 8047

Bc 8047 to 15600

C 15600 to going on ?

 

targets for C wave . it shd correct minimum 50 % of rise from 7697 to 15600 i.e. 11649 and second target comes at 61.8% level at 10716.

 

on crossing 15600 decisively this view will be invalid.

MARKET STATUS

i hope followers of blog must have enjoyed both side movements.
when we started correcting from 15600 it was mentioned in thread http://pankaj564.blogspot.com/2009/06/sell-off-from-new-high.html
that we might have started correction.and we corrected by 10% from there and we saw 14016 .

again it was mentioned in thread
http://pankaj564.blogspot.com/2009/06/market-options.html
that we may start upmove and so far we have seen apprx 800 points rise from there. we have seen good break out from triangle and sharp movement was seen as per expectation.

what next?
today we have reached near 50% retracement level 14808 when we tested 14782.
as mentioned earlier we have taken support at 34 dma and bounced. now we have reached next imp dma that is 21 dma.
so if we cross decisively this resisatnce zone around 14800 we can see 14995 next resistance zone soon.and we shd do profit booking there to buy in dips again.or due to global weakness if market opens weak we shd do buying around 14300-14400 zone for upmove.

stock specific buying shd be done.

14016 HAS NOW BECOME A STRONG SUPPORT LEVEL FOR COMING DAYS. BREAK OF IT WILL GIVE DEEPER CORRECTIONS.FOR ALL LONG POSITIONS STRICT STOP LOSS OF THIS LEVEL SHD BE KEPT.

retracement lvls

retracement levels of total fall from 15600 to 14016 are as given below

 

38.2% 14621

 

50% 14808

61.8% 14995

 

78.6% 15261

these levles can give resisatance to the upmove

break out from triangle

we have broken out from triangle on upside. target of this break out is 15100.

 

cheers!

5 DAY CHART AS ON 26.06.09

LOOK AT CHART. TRIANGLE IS BEING FORMED. BREAK OUT WILL GIVE SHARP MOVE OF 650 POINTS.