TRADING STRATEGY FOR 16TH JULY 2009
(Based on technical by O P AGARWAL)
Markets continue buoyancy on strong global cues
The market continuing its momentum, opened gap up yesterday on the back of strong global cues and remained firm throughout the session. Market participants felt relieved on expectations of rapid economic recovery, a definite roadmap on disinvestment and resumption of monsoon rains. Realty stocks recovered sharply and were in demand right through the session. Stocks from almost all the sectors namely metal, power, capital goods, PSU, auto, banking and oil stocks rallied with substantial gains. The Sensex, which surged past the 14K mark with ease and then headed beyond 14,299 in late afternoon trade, closed the session yesterday at 14,253 with an impressive gain of 400 points or 2.88%. The Nifty after making a high of 4249 during intra day trades closed at 4233 with a gain of 122 points or 2.97%. Market may remain firm since global cues remain strong and short covering by the bears may push the markets higher. Readers are advised to remain cautious and trade with strict stops.
NIFTY FUTURE (Last close 4236.90)
The counter as expected moved further up and gained yet for the second day an impressive 124 points over its previous close amid volatile session. The counter to maintain its upward momentum needs to trade and remain above 4259.75 whereby it may move further up to 4302/4333. Strong support for NF exists at 4192.25 which if breached decisively NF may slide to 4163/4142.
TATA COMMUNICATIONS FUTURE (Last close 468.00)
The stock of the multi product, multi service telecom giant after remaining range bound during the past few trading sessions closed yesterday above its short term trend line with positive bias. The stock may move further up to 476/481 once it trades and remains above 470.50. Strong support for the stock exists at 465.50.
UNITED SPIRITS FUTURE (Last close 875.55)
The company is India's biggest alcoholic drinks company with at least 59% market share and it is the world's third biggest by sales volume after Diageo and Pernod Ricard. The shares of the company are in the lime light since last month on reports that private equity investors are eyeing to buy stake in the company worth $250-300. The report suggested that the deal is likely to happen at a slight premium to the prevailing market price some time soon. Meanwhile, the stock after moving range bound with high volatility during the past one week closed yesterday above its mid term trend line with positive bias. The stock may move up to 887/898 once it trades and remains above 879.75. Strong support for the stock exits at 869.25.
Readers may avoid trading in the above recommended stocks unless, they have risk taking capacity.
DEAR READERS,
PLEASE WATCH THE MARKET TREND AND USE YOUR OWN DISCRETION BEFORE TAKING A TRADE.
Protect profits with trailing stops and cut losses fast. Avoid adding contracts in loss making trades
Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.
(Based on technical by O P AGARWAL)
Markets continue buoyancy on strong global cues
The market continuing its momentum, opened gap up yesterday on the back of strong global cues and remained firm throughout the session. Market participants felt relieved on expectations of rapid economic recovery, a definite roadmap on disinvestment and resumption of monsoon rains. Realty stocks recovered sharply and were in demand right through the session. Stocks from almost all the sectors namely metal, power, capital goods, PSU, auto, banking and oil stocks rallied with substantial gains. The Sensex, which surged past the 14K mark with ease and then headed beyond 14,299 in late afternoon trade, closed the session yesterday at 14,253 with an impressive gain of 400 points or 2.88%. The Nifty after making a high of 4249 during intra day trades closed at 4233 with a gain of 122 points or 2.97%. Market may remain firm since global cues remain strong and short covering by the bears may push the markets higher. Readers are advised to remain cautious and trade with strict stops.
NIFTY FUTURE (Last close 4236.90)
The counter as expected moved further up and gained yet for the second day an impressive 124 points over its previous close amid volatile session. The counter to maintain its upward momentum needs to trade and remain above 4259.75 whereby it may move further up to 4302/4333. Strong support for NF exists at 4192.25 which if breached decisively NF may slide to 4163/4142.
TATA COMMUNICATIONS FUTURE (Last close 468.00)
The stock of the multi product, multi service telecom giant after remaining range bound during the past few trading sessions closed yesterday above its short term trend line with positive bias. The stock may move further up to 476/481 once it trades and remains above 470.50. Strong support for the stock exists at 465.50.
UNITED SPIRITS FUTURE (Last close 875.55)
The company is India's biggest alcoholic drinks company with at least 59% market share and it is the world's third biggest by sales volume after Diageo and Pernod Ricard. The shares of the company are in the lime light since last month on reports that private equity investors are eyeing to buy stake in the company worth $250-300. The report suggested that the deal is likely to happen at a slight premium to the prevailing market price some time soon. Meanwhile, the stock after moving range bound with high volatility during the past one week closed yesterday above its mid term trend line with positive bias. The stock may move up to 887/898 once it trades and remains above 879.75. Strong support for the stock exits at 869.25.
Readers may avoid trading in the above recommended stocks unless, they have risk taking capacity.
DEAR READERS,
PLEASE WATCH THE MARKET TREND AND USE YOUR OWN DISCRETION BEFORE TAKING A TRADE.
Protect profits with trailing stops and cut losses fast. Avoid adding contracts in loss making trades
Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.
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