INDEX VIEW AND SHORT TERM TRADES

• Readers of this blog will recollect that on 26/1/2014 I had opined that RISK OFF IS IN THE AIR. As prognosed, NIFTY decisively broke 6150 on the downside and went on to test intraday lows of 6027 during the week, before closing at 6089 on 31/1/2014.
• Most analysts and commentators are now of the opinion that we are heading lower to levels of 5920 or thereabouts. Fridays global closings too have not been encouraging with most US, European indices posting 1% cuts.
• Tough to stick one's neck out in the very short term, but I feel that on Monday 3/2/2014 we could see 6000 being tested intraday. It will be most important to note Mondays closing. A closing above 6020 would give the Bulls hope, in which case we could see levels of 6120 later in the week.
• A few closings above 6120 could then set us up for a run towards earlier highs later this month. However, on the other hand,  a couple of closings below 6000 could easily see 5920 being tested.
• In any case, even though my personal opinion points towards a recovery from 6000 odd levels upwards, one could be underestimating the global macro negativity.
• Therefore this weeks short term trading ideas are from the IT space since we don't want to get too aggressive by buying high beta presently.

TCS:

1. BUY AT CMP 2241
2. KEEP A SL AT 2190 CLOSING BASIS
3. TARGETS ARE 2255, 2270, 2283, 2300, 2322.
4. 4-6 WEEKS

HCL TECH:

1. BUY AT CMP 1464
2. KEEP A SL AT 1400 CLOSING BASIS
3. TARGETS ARE 1470, 1488, 1500, 1512, 1530
4. 4 WEEKS

TECH MAHINDRA:

1. BUY AT CMP 1790
2. KEEP A SL AT 1700 CLOSING BASIS
3. TARGETS ARE 1803, 1823, 1845, 1857, 1870
4. 4 WEEKS

More conservative traders may find it useful to wait Monday out and see whether we can hold the 6000 to 6020 level on a closing basis, before initiating the above trades with appropriately modified entry levels. If taking the FUTURES route, it would be advisable to also BUY an appropriate protective PUT for the above trades, to lessen losses in case things go for a toss.

ALL THE BEST.

EARLIER TRADING IDEAS HERE