Free Tips - 03 Jun 08

Buy Allahabad Bank for Short Term CMP: 80.55 Tgt: 95-98
The monthly candlestick chart of Allahabad Bank shows a sharp decline from
Rs.143.70 to Rs.70.65. The short term oscillators have reached oversold zone and
hence a chance of a pullback. One can gradually buy at current levels as well as
in declines at Rs.74-76 with a strict stop loss below Rs.71 in close for a target
of Rs.95-98 which if sustained Rs.107 in the coming 4-6 weeks.
* Avoid gap openings and volumes are less hence trade in small quantity

Buy GNFC for Short Term CMP: 152.65 Tgt: 168 & 182
The daily candlestick chart of GNFC shows that it is oscillating in an upward sloping
channel in blue. Support is pegged at Rs.145 which if holds can test Rs.168 and
Rs.182. One can gradually buy at current levels as well as in declines at
Rs.145 with a strict stop loss below Rs.138 in close for a target of Rs.168
which if sustained Rs.182-188 in the coming 6-8 weeks.
* Avoid gap openings and volumes are less hence trade in small quantity.

NIFTY VIEW - S&P Nifty (4871.10 points)
Again the month of May (even years) saw the markets close deep in
red. The Bulls failed to overcome the “May fear” losing around 400
points in the last fortnight. Market sentiment appeared weak on
rise in inflation and crude prices. Among the Sectoral Indices, Auto,
Banking, Oil & Gas, Realty and PSU stocks pulled the Indices down
while the Metal stocks rallied. The underdogs Healthcare, IT and
Teck sectors were the star performers (closing 5% above). In the end
the Nifty lost around 300 points while the volumes remained almost
the same.
Now in the Nifty, the 78.6% retracement of the rise from 4628-5298
points is at 4772 points. Trend line support in blue is pegged at
4747 points. Hence the 4750-4775 points’ area is likely to attract
some short covering. Follow stop losses and trade. Unless and until
the 5040 points is not decisively crossed, the short term trend is
down and for fresh up momentum, trendline resistance in pink
(daily chart) at 5262 points needs to be sustained.
Currently it is a traders market with stock specific movement. No
one is keeping commitment from a long term scenario. The Nifty is
oscillating, while volatility of around 400-500 points is seen for the
past two months. Pullbacks are unable to get converted into rallies.
As long as 5078 points is not crossed in close, markets will remain
under pressure with crucial support in declines pegged at 4681
points. The Index Heavy weight stocks have to move up in tandem
which will motivate the Midcap stocks to join and in turn could see
a broad based rally on high volumes.