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IRB INFRA : Bought around 92 - 95 range & sold at 100 & 105.
AREVA T&D (232) : Bought at 222 and held for higher targets.
As mentioned in our last weeks report, Nifty recorded a high of 3717 and
entered into a correction. Accordingly, the Nifty commenced a minor correction
and declined to around 3582.
During the current week, expect the Nifty to face resistance at 3663 - 3705. A
close above 3663 will signify strength. A rise or close above 3695 - 3717 will take
the Nifty to around 3766 - 3800 levels.
On the downside, a break or close below 3570 will take the Nifty to 3534 -
3425 levels. In case this happens, it should be deemed that we recorded a
significant high @ 3717, which can then be expected to hold for a period of
around 2-3 months and would mean the begining of of a sideways /
down move.
During May, the Nifty has to close above 3663 before 15th May ( preferrably a
weekly close), it will then head for a target of 3848 by end of May.
INVESTMENT STRATEGY
If we take a pre - electoral call, we can conclude that the current uptrend is a
little over bought but is still intact. Hence the risk-reward ratio does not favour
fresh investments at this level. It will be prudent for investors to book profits and
reduce their exposure on long holdings. Investors can await the outcome of the
elections before making new committments. Fresh investments can be avoided
and made only after a significant price correction is witnessed on the indices.
Traders can trade long selectively, with reduced volumes and with a tight
stop loss as the next few weeks can witness excessive bouts of volatility. As a
precautionary measure one should book profits on longs, reduce your position
size, hedge your positions and also keep a trailing stop loss. Remember, it is
better to be safe than sorry.
EQUITY TRENDZ
AREVA T&D(232) : Behold a power packed move above 240.