markettrend766
13-10-2008, 05:35 AM
It was party time for bears with markets witnessing one of the biggest falls in the history.
Despite technical oscillators indicating deeply oversold zone, downward momentum is not showing signs of tiredness reflecting bears’ overconfidence of further fall in markets.
Huge short positions were seen in both index futures and several individual stock futures like ICICI Bank, DLF, Larsen and Toubro, Reliance Infra, Reliance Capital and others. Contrarian buying suggested in 3,400 and 3,500 strike call options of Nifty. Public Sector banks were seen exhibiting relatively good strength in the current carnage.
Buy on declines SBI, Union Bank, Canara Bank, OBC, IOB and UCO. "Steady" performance of Infosys failed to cheer tech bulls. Use declines to accumulate this "debt" free counter. Many realty counters have been badly mauled by bears irrespective of ‘intrinsic’ value. Attempt bottom-fishing from current levels.
Use current weakness to accumulate pharma, power and telecom counters selectively.
Buy Ranbaxy, Matrix, Sun Pharma and Cipla from pharma space and nibble at Reliance Communications. and Bharti in telecom sector. Buying can be attempted in low priced stocks like Tata Chemicals, IDFC, NFCL, IFCI, Shree Renuka, SRF, Firstsource, MIC, Chambal and GVK Power. Use rallies to exit from metal, brokerage and auto counters.
Stocks with high debt of either domestic or foreign currency or FCCB are being hammered ruthlessly. Avoid and do not be adventurous to buy such counters.
Despite technical oscillators indicating deeply oversold zone, downward momentum is not showing signs of tiredness reflecting bears’ overconfidence of further fall in markets.
Huge short positions were seen in both index futures and several individual stock futures like ICICI Bank, DLF, Larsen and Toubro, Reliance Infra, Reliance Capital and others. Contrarian buying suggested in 3,400 and 3,500 strike call options of Nifty. Public Sector banks were seen exhibiting relatively good strength in the current carnage.
Buy on declines SBI, Union Bank, Canara Bank, OBC, IOB and UCO. "Steady" performance of Infosys failed to cheer tech bulls. Use declines to accumulate this "debt" free counter. Many realty counters have been badly mauled by bears irrespective of ‘intrinsic’ value. Attempt bottom-fishing from current levels.
Use current weakness to accumulate pharma, power and telecom counters selectively.
Buy Ranbaxy, Matrix, Sun Pharma and Cipla from pharma space and nibble at Reliance Communications. and Bharti in telecom sector. Buying can be attempted in low priced stocks like Tata Chemicals, IDFC, NFCL, IFCI, Shree Renuka, SRF, Firstsource, MIC, Chambal and GVK Power. Use rallies to exit from metal, brokerage and auto counters.
Stocks with high debt of either domestic or foreign currency or FCCB are being hammered ruthlessly. Avoid and do not be adventurous to buy such counters.