MARKET MANTRA

[Excerpts of my news-letter to the clients, sent today morning]

Yesterday, the market was better than expected. Not only Nifty Traded with a positive bias, but it rallied strongly to settle above 5400 mark yesterday on the back of derivative expiry. It was a gap up opening followed by sustained up-move for entire day. Nifty made a high of 5429 before settling at 5409.
Market is showing some signs of  revival. At lower levels buying is coming which is giving the much needed support to the Bulls. Nifty has bounced back 310 points from the low of 5118 within a few trading sessions. This has resulted into extreme volatility and unprecedented moves on the either sides. The best sector to focus now is Information Technology.
Resistance: 5450 / 54700
Support: 5360 / 5300. 

Nifty_Future Trading Strategy: For Friday, August 30, 2013, the trend deciding point emerges at 5358 mark. Since Nifty_future is seen reversing from this point and hence it can move towards the first resistance at 5450 mark. In case of sharp up move, Nifty can inch up to the first weekly resistance of 5530 mark, depending on the demand pressure.

Today's recommendation: 

(i) Buy Geometric Ltd (BSE Code: 532312) at Rs.77-77.50, T-Rs.87-88, SL--Rs.71.80. The stock has formed a good base and is showing positive divergence on the charts. The specialty of this share is that Jhunjhunwala Rakesh Radheshyam is holding 17.83% of the shares of the company. 

(ii) Buy IDFC Ltd at Rs.80-81, T--Rs.87, SL--Rs.78.80. This is one of the blue chips, in the space in which it operates.