Good morning.

Dear friends,

Volatility will reign…

…supreme

It is for the third time that markets have seen deeper corrections and bounced from pits in past 30 trading sessions. Is it the intrinsic strength?? Or should sebi take a look into this staged drama???

We believe regulatory authority is hand in glove with the manipulators and so do not expect any action whatsoever. The best part is that general investors tend to forget such matters as after every such fall market has risen to a fresh peak. It’s all a psychological game!! Get ready for a deeper and devastating corrections to follow in short term.

We strongly advice to use any rise above 12500 to exit the markets in totality. We expect a larger & deeper correction to set in. This scenario can only be reversed if markets close above 12750.

Today, indices may test 11745 (3484). Expect accelerated move above 12000 (3550) to target 12105 (3585) and 12315 (3645). Downside support exists at 11530 (3425).

Expect most of the stocks to bounce back as they are in highly oversold zones.

Neyveli lignite has undergone a 100% retracement and is currently available at throwaway prices. We recommend a buy above 83.50 or to accumulate at lower levels keeping stoploss at 77. Expected to touch 85.5. Above 87, stock will 88.50, 91.50 & 97.

Patni computers – this stock has nothing lose and everything to gain in next few weeks. As stock has been beaten down by almost 32% while markets have seen a never before rally. Expected targets are 420, 435 & 452 in short term. Stock will turn weak below 380. Finds major support at 365.

Gvk power is the stock to watchout for above 325. Stock will attract huge buying interest taking it to 360. Minor resistance at 330 – 333.

We strongly recommend to buy hbl nife above 282. Stock will zoom to touch 310 in matter of hours only. Close above 315 will spell a fresh bull move taking it to 395 in a non-stop rally.

S. Kumar’s nationwide has announced it’s bullish intention. We recommend to buy for extreme short term target of 80 & 95.

Bombshells – klg systel, praj industries, grabal alok (t2t) & nile inds.

Smart buys – crane software, munjal auto, garware offshore & everest kanto cylinders.

Take care!

Have a nice day!

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