n Nifty remains in corrective down-move below 5180 levels. We expect the
index to take support at 4800 levels; witness some consolidation and witness
a bounce back. Buying is advised in the range of 4750-4800 for an
immediate target of 4950.
n Reliance Industries has completed its correction at 1980 levels and remains
positive above the same. We advise buying reliance at lower levels
of 2000 with a medium term perspective and SL placed at 1930. Cairn can
also be accumulated at lower levels with a medium term perspective.
n LT has shown some signs of recovery at lower levels. BHEL can be bought
at 2300 levels. From the momentum space, realty major DLF has significant
support around 394; buying is advised below the same with a positional
SL of 360
On Wednesday the market remained volatile below the hurdle level of 4865/16450 and that was an indication of further
weakness. However, the sell off was stock specific and against the free fall of Tuesday. On Wednesday the market was
down mainly because of HLL, MARUTI, HDFC, HDFC BANK and SAIL.
As the market failed to breach 4865/16450 levels on the higher side, the next level to watch for on the lower side should
be between 4730/4700 (15840). These levels are weekly supports and may invite select buyers in value stocks. Around
4700/15840 levels short sellers should be cautious as reversals may be sharper than expectations. However, for traders
buying is advisable only on sharp recoveries from these levels. On the higher the level 4845-4865 (16450) may act as a
hurdle for the day.
