Newsletter dated 5th May,2009

GLOBAL MARKETS
U.S. stocks rallied on Monday, driving the S&P 500 into positive territory for the year as investors bet banks' capital shortfalls may be manageable and housing data fueled hopes the recession is easing.
The Dow Jones industrial average .DJI rose 214.33 points, or 2.61 percent, to 8,426.74. The Standard & Poor's 500 Index .SPX gained 29.72 points, or 3.39 percent, to 907.24 -- its first close above the 900 level since early January. The Nasdaq Composite Index climbed 44.36 points, or 2.58 percent, to 1,763.56.

Asian markets trading flattish to +ve territory. Hang Seng opened gap up but consolidated after that. All other Asian markets are consolidating today. Nifty is likely to open flattish today. Today would be day of consolidation.


NIFTY
Nifty would face resistance at 3696, 3710 and 3719 levels. On lower side it would take support around 3620 levels. Today Nifty would trade in a narrow range of 40-50 points. One should try to exit their long position if Nifty trades near to 3700.

HCL TECH
Yesterday it rose more than 18% to close just above 154. Today it would consolidate. It would face resistance at 162 and 166 levels. It may open gap up and then would correct somewhat. At higher levels it could be shorted with SL near 162 or 166. Target could be 148 and 145.

HDFC LTD
This stock too rose almost 14% to close at1965. Today it would consolidate after opening gap up. So probably gap up opening should be capitalized to initiate shorts keeping SL of 2024 or 2032. Target could be 1932 and 1918.

WIPRO
It has run up more than 10% yesterday. Today it might slow down after opening gap up. Probably at higher levels one may initiate shorts with SL of 374 and 379. Target could be 354 and 348.

BHARTI AIRTEL
This is one of the few counters which could flourish if it sustains above 748. One should go long around 752 keeping SL of 742. Target could be 774 and 782.

BANK OF INDIA
In last 2 days it has corrected a lot. It is trading well below its 9DMA. But it has strong support zone of 220-224. So one may go long in the counter keeping SL of 220. It might test levels of 242 and 252. It might be today itself. So i recommend a strong intraday buy.

EDUCOMP
In yesteray's flourish it cracked. Probably it may face further selling pressure today. If it opens gap up then shorts could be initiated keeping SL of 2420. Target could be 2280 and 2252.

Other stocks that could open gap up and then correct...
Infotech Enterprises, Sintex and Mindtree. We may initiate shorts if they open gap up. Maintain appropriate SL and Target as per your risk appetite.

Note: The above mentioned strategy is just an indication. Do your own homework before initiating any trades based on above information. The online calls are given to our paid clients only via messenger and sms.

Anurag Dujari
Mobile: 92308-92309
E-Mail- anurag130@gmail.com
Yahoo Messenger ID - trading_picks

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