Market Update & Trading Call

The Nifty staged one of the smartest recoveries in recent times to close the day and the week on a positive note. The opening losses were brushed aside and the index closed 100 points away from the intra-day low at 4141 levels. The market left bears running for cover as late afternoon short covering saw the Nifty gaining 40 points in the last half hour. The weekly positive close along with a key reversal bullish engulfing pattern on the Nifty daily charts gives an upper hand to bulls. The market has taken support at 20-DMA and there is upside till 4320 as is evident from the charts. Our short-term bias turns positive with reversal at 4180. Intra-day charts show reversal signals as the market has retraced 61% of the recent fall and the 4235 level would
be the key. The momentum indicators have triggered buy readings and the follow-up is crucial. An upside opening gap would be ideal for Monday. The 4180 level would
provide strong supports from hereon.

Information technology stocks have moved up with a bang. Infosys should target Rs2,000-2,020 and Satyam should aim for Rs490. Satyam has good support at Rs460. RCOM has moved past Rs500 and looks set to retest Rs515.

United Phosphorus–Buy
CMP: Rs294.0
Buy United Phosphorus at the current market price of Rs294
with a stop loss of Rs281.4 for a target of Rs324.