Nifty may correct today

Nifty has managed to close in the positive territory on Friday. It was a very volatile session on the last trading day. I expect the nifty to give a flat to negative opening  today which may tak the nifty to the levels of 4940 and thereafter 4890 which will act as a major support. I advise all my investors to have patience for the first one hour of the trade and then only take long positions. For this week my favourite being the infrastructure stocks. Iam maintaing my long positions in JP associates , Dlf and Unitech . Just follow us we will move these scrips.

                                                                                                  Buy Jp Associates

JP Associates has given a sharp move on Wednesday. The stock has finally managed to close above the 250 levels which is a positive sign for the stock. On Tuesday the stock may give a opening near to 248 levels which is good price to enter in this stock. Sice last thyree days there is a lot of fund activity happening in this stock and the volumes has also climbed up and above it is looking very strong on the charts. I would advise all of you to saty long in this stock for a price target of 290 in this week  by keeping a strict stoploss of 238. All of you will witness the huge fund buying in this stock after 12 pm.

                                                                     Buy Reliance Industries(Jack Pot call for October series)

The darling baby of the stock market has not at all participated in this rally since last so many days. Although the volumes has increased in this stock since couple of days.The stock is trading between 2050 and 2100 levels. Today I expect the stock to test 2060 levels in early hours of trade and then it may give a upmove. People who have patience and have a lion heart take the long position in 2100 strkie price october call between 82 to 94 levels. I expect the stock to move till 2530 levls in the october series. Keep a stoploss of 73 in the call option and trade for the target of 380 in the next month. Relaince is eyeing to acquire part or whole of LyondellBasell which is considered as a sick petrochem unit of Netherlands.

                                                                                             Buy Orchid Chemicals

The launch of Tazo-Pip in the USA and the incremental revenues from the Penem segment (expected in Q4FY2010) would act as major triggers for Orchid Chemicals and Pharmaceuticals in the near term, whereas the reduction in debt levels and interest cost would drive the stock in medium to long term. At the current market price of Rs 164, Orchid is discounting its FY2011E earnings by 7.2x. I maintain a buy recommendation on the stock with a revised price target of Rs 184. I would advise all of you to take positions near 154 levlels with a target 190 plus in coming days.

                                                                                                      Levels for Nifty

Nifty may give a negative opening today . The support levels are 4940 and 4891 and the resistance levels are 4980 and 5000.

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Nitin Gupta @ 09867427824

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Disclaimer : These Recommendations are based on technical analysis  and Personal observations. Due care has been taken while preparing these comments, no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations.

Disclosure : The calls made herein are for informational purposes and are not recommendations to any person to buy or sell any securities. The information is derived from sources that are deemed to be reliable but its accuracy and completeness are not guaranteed. The above calls are based on the theory of technical analysis. The author does not accept any liability for the use of this site. Readers of this site who buy or sell securities based on the information.