Image by khalid almasoud via FlickrHi Friends,
Since a long time time I have not written to you at length as I was busy sharpening and enhancing my technical analysis skill sets at a training programme.
Since the first week of January ended , the market trend has weakened. Every new day , we expect it to hold on and be strong but in vain. It is very important at this level to watch it break 16600-700 resistance and hold strong to confirm intermittant upward trend. February month will not be very strong and we may or may not watch a strong budget rally. In last 10 years i.e. from 2001, only February 2002 was strong, all other February months were either lower or insignificantly higher. Accordingly, I do not have much hope this month for any strong pull back. Other technical aspects too suggest the same.
I advise my followers to keep on booking profits at each level,if any and sit on cash for buying opportunities. PSUs like Hind. copper, nmdc, stc india, etc., hdfc , Walchand nagar, look good , accumulate them till budget. Larsen, Reliance look weak. Certain IT shares - Mphasis,Avaya Global, Pharma like zydus are good buys.
More when we meet tomorrow on the market opening,