Challenge to hold Monday gains

Hello all!!

I am back again with head high as I would first like to mention the targets that I have been able to achieve.

I had suggested a target of Rs137/- on GMR Infra and that target has been hit by the stock. Now the stock is quoting at its key resistance of Rs137.35/- accurately and some profit booking is expected to come in. This profit booking might leave the stock in the price range of Rs128.75-137.35

Next stock that I had referred to was LITL. The stock has achieved its target of Rs415/- as it closed at Rs425/-.

The stock BHEL still remains in its range as was mentioned Rs1958 – Rs2351. The stock may not fall back to the levels of Rs1958 again but it might see amount of profit booking at current levels and the stock may shed some value.

In the blog posted yesterday, it was mentioned that the market is expected to go up and gain momentum which is what happened today.

In the blog posted on Thursday, it was mentioned that Hero Honda might bounce back to the levels of Rs1400/- and then it was also said that the stock will gain further momentum after crossing Rs1420/- and the result is in front of all of us. The stock is today quoting at Rs1527/- and the stock has gained approximately Rs150 in the last 3days.

Apollo tyres and Binani cement are still in the frame. They have not given a breakout yet which is awaited. Apollo tyres can give a breakout any day.

But as always, what is gone is history, let us resolve the mystery of what next!!

Nifty is currently at 4642. While important levels to watch out for as of today are 4641 and 4655 and therefore, nifty is at the level, where selling pressure could be seen.

Stocks like Aban and Bharat Forge have given a buy signal, but the risk to reward ratio is unfavourable to take a trade and with the market risk hovering it becomes a risky trade to initiate.

Aban is currently trading at Rs1216.15 and can be bought with a target of Rs1418/- and then Rs1632/- and a stop loss of Rs1174/-. However, Rs1242 remains a good number to watch out for.

Similarly, Bharat Forge has triggered a buy call, but the risk to reward ratio is a way too high. With a target of Rs243 and stop loss of Rs223, Bharat Forge (currently quoting at Rs230/-) can be bought. This information should ideally be used by high risk traders.

Almost all the stocks are quoting at their key resistance levels. Stocks like Suzlon, which are not out of the bear phase yet, is at its important resistance of Rs88.65/-. The stock itself quoting at Rs88.15/- may lose ground and bleed as the market risk will influence its movement.

Educomp Solutions
The stock is quoting at Rs3896/- while the stock price is in the range of Rs3730/- to Rs3938/-. So, wait for the range to break on either side. Positive breakout is expected which might take some time

Apollo tyres has not given a breakout yet.

Punjlloyd is yet another stock quoting at an important resistance level. And a bout of selling might come in, which might take the stock back to the levels of Rs244/- or so.

So, wait to see how the market reacts. My personal sense is that the market might be a bit volatile, with a slightly negative bias. In case, the market and stocks are able to take out these resistance levels, nothing like that.


Disclaimer
1) I personally do not trade in the stock market.
2) Any trade taken on the basis of the information provided above does not hold the writer liable for it. Any decision to take a trade based on the above information is at the discretion of the respected reader.