Indian Equity Market Investment Strategy

WWW.EQUITYTRENDZ.COM PERFORMANCE REVIEW OF LAST WEEKS RECOMMENDATIONS SUN TV

: Bought at 195 and sold at 233

IRB INFRA

: Bought around 92 - 95 range & sold at 100 & 105.

MRPL

: Bought at 50 and sold at 52.5.

BANK OF INDIA

: Bought at 230 and sold at 235 - 238 range

MRPL (53)

: Bought at 53.5 and held for higher targets.

AREVA T&D (232) : Bought at 222 and held for higher targets. NTPC ( 190)

: Bought at 190 and held for higher targets.

WEEKLY MARKET UPDATE AS ON 11th MAY NIFTY (3620) 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.

CANARA BANK(225)

: Buy on declines for a target of 254.

DCB (24.5)

: Stock you can bank upon, on declines.

DENA BANK( 39)

: Buy on declines for a powerful upmove.

NTPC(190)

: Consolidating for higher targets

MRPL (53)

: Looks promising with a SL of 50.

POWER FINANCE(162) : Buy on declines for a target of 185. RENUKA SUGAR(114)

: Heading

for a target of 146. Buy on declines.

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