Market outlook and trading strategy for the next week : WWW.ASHOKSHARMA.CO.CC
Market in the short term will be highly unpredictable and volatile for the following reasons
- WORLD markets are showing weakness amidst fear of tightening of norms.
- Economic data worldwide are showing improvement.
- Indian budget is round the corner.
- FII are selling relentlessly while DII are providing support.
- Dollar index is dangerously above 80 , keep close watch on it
However Indian market will find strong support at 4670 level where both BULLS and BEARS will fight to the finish. Take my words 2010 will be the year of BULLS they will not let the bears walk away easily. As we are saying during the last month forget the direction of the market focus on the midcap space.
As our research team is to be believed there are plenty of midcaps ripe to flare up. We use this volatility to pick our targeted midcap at our desired price just like we did on Friday when we pick up PVP venture at 24. See the result up 9% in a 450 point down market.
To minimize your risk this week trade in options as panic days will provide options as high return low risk trading strategy. Just for example on Friday we picked up nifty 4800 call at 85 with stop 73.
Today market will trade at 11 AM TO 12.30 AM
Wishing all investors a profitable Saturday trading