Trading strategy for 16th July 2009

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.

View Original Article

Blogged with the Flock Browser

Trading strategy for 16th July 2009

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.

View Original Article

Blogged with the Flock Browser

Trading strategy for 16th July 2009

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.

View Original Article

Blogged with the Flock Browser

Nifty Technical Analysis For 8th July 2009

Nifty moved in a narrow range with decent volumes today, forming a nice trading range, with 4220 as resistance and 4150 as support. Breakout or breakdown with volumes confirmation may be traded with the height of the channel (70 points) as the target. Below is the 5 min chart of Nifty Futures:

On the higher side Nifty is may still face resistance at 4220 levels, next resistance is at 4260 levels. Above 4260 levels, it can go up to 4300 levels which is the target of the channel formed yesterday.

At present Nifty is taking support from 4150 levels, next support for it is at 4121 which is low of 6th July as well as an old gap-open. Below 4121 levels next support is at 4055.

Below is the hourly chart of Nifty Futures:

On Daily charts Nifty formed an inside bar, Range of the bar is narrow and the volumes at this bar is good which is indicating 2 things:

1. Market is unable to move up, due to supply (Demand is unable to take over the supply)


2. Buying or an attempt to move up with high effort (volumes) has happened today, which is indicating that if this up move fails then we may see more bearishness, as supply overtakes the demand.

Below is the Daily chart of Nifty Futures:

Source : chartreader

Trading strategy for 6th July 2009

(Based on technical by O P AGARWAL)

Budget outcome crucial for the markets

The Union Budget 2009-10 to be presented today will set the market trend since the document will spell out government's policy stance leading to much awaited reforms. Markets have been moving steady during the past few trading sessions on high hopes that the Budget will place thrust on sectors like infrastructure and construction, a suitable plan for disinvestment and insurance sector reforms. Market participants are hopeful that the Budget may also provide substantial relief on STT, FBT and other such taxes leading to increased turnover and substantial saving in the hands of investors. The Budget may also spell out ways for easy financing of long gestation infrastructure projects and suitable relief for builders and home loan borrowers to accelerate the pace. However, besides concessions it is anticipated that the government may rollback or revise suitably some of the tax sops given earlier to certain sectors which are doing well at present. Meanwhile, FIIs activity will also play key role in determining the market direction along with the policy reforms in the Budget. Markets are expected to remain highly volatile today and therefore readers are advised to trade with utmost caution with strict stops.

NIFTY FUTURE (Last close 4424.65)

The counter after witnessing high volatility and intra week swing of more than 200 points last week closed with marginal gain of around one percent. The counter will remain highly volatile today in view of budget presentation. Meantime, weekly chart patterns for NF suggest that the counter this week may remain in the range of 4319-4529, break above NF may move further up to 4561/4587, or else break below NF may slide to 4282/4241. For today’s trading one may enter long once NF trades and remains above 4457.75, whereby it may move up to 4486/4527. Strong support for NF exists at 4379.25 which if breached decisively NF may slide to 4339/4320.

DLF FUTURE (Last close 335.95)

The company is engaged in real estate development comprising all the segments viz. residential, commercial, and retail properties. The company’s stock suffered heavily in the past but of late it stabilized and appears to be consolidating at CMP. The company is slowly coming out of cash crunch with various measures adopted in the past. Further, the company hopes to get substantial contracts with the rail budget opening up major opportunities for private infrastructure developers by promising to modernise 50 railway stations to world standards through the public-private-partnership (PPP) route. Meantime, the stock after moving range bound during the previous week closed marginally higher with high volumes. The stock appears positive on weekly charts and may move up to 347/356 once it trades and remains above 339.25. Strong support for the stock exists at 329.25.

POWER GRID FUTURE (Last close 113.10)

The company owns and operates most of India's inter-state and inter-regional electric power transmission system and carries about 45% of the total power generated in India. The company's net profit rose 16.7% to Rs 1,690.61 crore in the year ended March 2009 over the year ended March 2008. Meantime, the stock after moving range bound during the past few trading sessions closed the previous week marginally higher with positive bias. The stock appears positive on weekly charts and may move up to 119/123 once it trades and remains above 114.25. Strong support for the stock exists at 110.25.

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.

View Original Article

Blogged with the Flock Browser

Head and Shoulders in Dow Jones

Dow Jones, formed a Head and shoulders in daily charts. Volumes are decreasing, which is Ok for head and shoulders. Yesterday it closed right at the neckline support, but big down fall happened with low volumes. If the neckline is broken is with good volumes Dow may see 7600 levels. This can be a retest to the channel, also there is a possibility of forming an inverted head and shoulder if it moves up with good volumes.

Below is the Daily chart of Dow Jones.

TRADING STRATEGY FOR 26TH MAY 2009

(Based on technical by O P AGARWAL)

Markets close flat amid choppy trade

Markets opened with positive gap yesterday but soon pared all its initial gains and turned negative. However, markets managed to recover around mid noon and moved range bound in a choppy trade thereafter. However, markets could not sustain at higher levels since investors remained wary of holding positions ahead of F & O expiry on Thursday. The Sensex finally closed the session with marginal gain of 26 points at 13913 while the Nifty closed flat at 4237. The market breadth however, remained quite strong right through the session. On BSE, 2470 stocks ended with gains while 316 stocks declined and 30 stocks ended flat. Readers are advised to trade with caution in view of high volatility in the markets ahead of derivative expiry.

NIFTY FUTURE (Last close 4241.80)

The counter closed flat yesterday with marginal loss amid moderate volatility. NF appears to be consolidating at current levels waiting for some fresh trigger. Market participants remained busy rolling over positions to new series. However, the counter to gain strength needs to trade and remain above 4279.75, whereby NF may move up to 4319/4356. Short term support for NF exists at 4216.25 which if breached decisively NF may slide to 4191/4163.

TATA COMMUNICATIONS FUTURE (Last close 585.90)

The stock after remaining range bound during the past two sessions closed flat yesterday with high volumes. The stock remains positive on weekly charts and may move up to 596/604 once it trades and remains above 589.25. Strong support for the stock exists at 579.25.

TATA MOTORS (Last close 346.35)

The stock after remaining range bound during the past two sessions closed flat yesterday with positive bias. The stock appears positive on weekly charts. The stock may move up to 352/357 once it trades and remains above 347.75. Strong support for the stock exists at 339.25.

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.

Powered by ScribeFire.

TRADING STRATEGY FOR 25TH MAY 2009

(Based on technical by O P AGARWAL)

Markets appear buoyant ahead of F & O expiry

The previous week had a brilliant start with the Sensex making history by surging a record 2000 points forcing the market regulator to halt trading for the day following the Congress-led UPA front winning a strong mandate in general elections 2009. The sentiment remained buoyant throughout the week except some profit booking seen in between. While the Sensex shot up by 1,713 points or over 14% to 13,887, the Nifty rose 566 points or 15.44% to 4238.50. Markets are expected to remain firm this week, following positive global cues and optimism that the new government will accelerate economic reforms. Further, investors are relieved that key portfolios have been allocated to old hands. However, readers are cautioned that with the F & O expiry this Thursday, markets may witness high volatility and hence, one needs to trade with caution with strict stops.

NIFTY FUTURE (Last close 4252.75)

The counter after huge gap up opening last Monday following the Congress-led UPA win closed the week with a massive gain of 567 points making a high of 4620 and a low of 4052.The counter witnessed profit booking at higher levels during the week but market sentiment remains upbeat. NF may oscillate between 4143-4412 this week, break above NF may move up to 4531/4619 or else break below NF may slip to 4078/4010. For today’s trading the counter will gain strength once it trades and remains above 4302.75 whereby it may move up to 4339/4361. Strong support for NF exists at 4197.25 which if breached decisively NF may slide to 4163/4141.

TATA POWER FUTURE (Last close 1046.65)

The Company generates and supplies electricity in Mumbai and its suburbs. The company also constructs and operates independent power plants as well as captive power plants for industrial concerns and also provides various services related to electricity distribution, erection and commissioning of transmission lines. The company recently commissioned 1x120 MW - power house 6 at Jamshedpur for Tata Steel. The board meeting of the Company will be held on 28 May 2009 to consider the final accounts and recommendation of dividend (if any) for the year ended 31 March 2009. Meantime, the stock in line with the euphoria in the market surged around 14% during the last week. The stock still appears positive on charts and may move up to 1062/1069 once it trades and remains above 1053.75. Strong support for the stock exists at 1043.25.

INFOSYS FUTURE (Last close 1527.25)

The company is India's second largest software outsourcer by sales which provides information technology services to a host of enterprises worldwide. The stock of the company suffered during the past week owing to sharp appreciation of Rupee against US dollar since the company gets most of their revenue in dollars and every 1% rupee movement against the dollar impacts operating margins by 40 to 50 basis points. Further, the company is reported to be eyeing an acquisition of about $200-$300 million in the healthcare or lifestyle segment to augment its presence in the sector. Meantime, the stock closed on Friday with marginal gain and appears to be consolidating at current levels. The stock may move further up to 1549/1562 once it trades and remains above 1536.75. Strong support for the stock exists at 1523.25.

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.

Powered by ScribeFire.

TRADING STRATEGY FOR 22ND MAY 2009

TRADING STRATEGY FOR 22ND MAY 2009
(Based on technical by O P AGARWAL)

Markets close weak on profit taking

Market opened
gap down yesterday on the back of weak global cues and remained subdued through out the session except around mid noon when a rebound was noticed which too could not sustain under selling pressure and the Sensex finally closed the day amid high volatility at 13736 losing a massive 324 points making a low of 13704 and a high of 14089 during the day. The Nifty too lost 59 points and ended the session at 4210 after making a low of 4199 and a high of 4319. Stocks from banking, capital goods, auto and FMCG were the big losers while oil and selected IT shares remained firm. Market participants will be keenly watching the new incumbent for the finance and commerce ministries. Meantime, in view of market volatility, readers are advised to trade with caution and avoid taking large positions.

NIFTY FUTURE (Last close 4219.95)
The counter after gap down opening yesterday remained under pressure through out the session
except at mid noon when it rebounded to a high of 4328 but could not cross the resistance level of 4331 indicated in these columns yesterday and slipped back. The counter finally closed the day losing 70 points amid high volatility and intra day swing of more than 120 points. The counter is witnessing profit booking at higher levels and may slip further to 4167/4134 once it trades and remains below 4196.25. Strong resistance for NF exists at 4263.75, which if crossed decisively it may move up to 4282/4309.

JINDAL SAW FUTURE (Last close 362.05)
The stock of the company may remain under pressure amid multiple concerns one among slowing order flow impacting significantly company’s future revenues. As per reports, the company has outstanding derivative contracts, where the bankers have estimated MTM loss from all outstanding contracts at approximately $103 million, but the same has been neither charged to the Profit & Loss Account nor considered in the Balance Sheet. The gain or loss on the same is being accounted on settlement, which is different from the standard accounting practices and may weigh on the stock’s valuations. Meantime, the stock has surged a hefty 80% during this month from a low of 218 to a high of 393. However, the stock is moving range bound during the past three trading session but is not able to sustain at higher levels and may therefore, witness profit booking which may take the stock down to 349/343 once it trades and remains below 356.25. Strong resistance for the stock exists at 369.75.


TITAN FUTURE (Last close 1076.25)
The company has decided to close down its two branded jewellery stores, Tanishq, in the US which had resulted in a charge of Rs 29.02 crore to the profit and loss account of Titan, according to the announcement made on BSE last week. The company is planning to cut costs on several counts to survive in these challenging times. Meantime, the stock of the company has surged a whopping 60% during the past 14 trading sessions from a low of 719 on 28th April 09 to a high of 1149 made yesterday. The stock may witness profit taking at current market price and may slip to 1053/1034 once it trades and remains below 1069.25. Strong resistance for the stock exists at 1085.75.

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.

Trading strategy for 21st May 2009

TRADING STRATEGY FOR 21ST MAY 2009

(Based on technical by O P
AGARWAL)

Markets take a breather

The market after opening weak yesterday soon bounced back to positive territory but sustained profit booking at higher levels in index heavy weight stocks pulled the market down once again. Market volatility was high with the Sensex gyrating more than 400 points, it touched a high of 14,405 and a low of 13,976 yesterday and finally closed losing a massive 241 points at 14060. The Nifty closed lower by 48 points at 4270 moving in the range of 4244 and 4362 yesterday. Meantime, the prime minister in a statement assured that his coalition would pursue reforms in agriculture, industry and the wider economy to push growth and make it even more inclusive. Market participants are hopeful that with the installation of new government at the centre tomorrow, the pace of reforms will be speeded up. It is further hoped that major concessions may be given in the budget which may be presented next month.

NIFTY FUTURE (Last close 4290.05)
The counter after gap down opening yesterday bounced back within minutes in to positive territory but sustained profit taking at higher levels in index heavy weight stocks pulled down the same into red. The counter moved range bound thereafter but dipped to a low of 260, absolutely near the support level indicated in these columns yesterday and retraced. NF finally closed the session yesterday losing 52 points. The counter may gain strength once it trades and remains above 4331.75, whereby it may move up to 4359/4384. Strong support for NF exists at 4248.25, which if breached decisively NF may slip to 4222/4192.

GUJARAT
STATE PETRONET FUTURE (Last close 55.10) The company connects various supply sources and users of natural gas in Gujarat through gas pipeline network. It involves transportation of natural gas from sources of supply to the end customers. The stock of the company after remaining range bound during the past three sessions closed yesterday above its short term trend. The stock appears positive on weekly charts and may move further to 58/61 once it trades and remains above 55.50. Strong support for the stock exists at 53.25.

RNRL FUTURE (Last close 74.55)
The company is engaged in the business of sourcing, supply and transportation of gas, coal and liquid fuels. The company is concentrating on building a strong foundation for the business of fuel management and has already established itself as a contending player in the Indian market. The company is actively pursuing business opportunities in the supply management of coal and natural gas. The stock after remaining range bound during the past three trading sessions closed yesterday way above its weekly resistance with high volumes. The stock may further move to 79/82 once it trades and remains above 75.75. Strong support for the stock exists at 72.25.


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.

Trading strategy for 19th May 2009

TRADING STRATEGY FOR 19TH MAY 2009
(Based on technical by O P AGARWAL)

Market mood remains upbeat

Investors yesterday gave three cheers to the market after the decisive election victory of Congress led UPA whereby the Sensex leapt more than seventeen percent gaining 2110 points and closed the day at 14284 its highest close since September 11, 2008. Market participants appear confident that a strong coalition, free of the pressures from its former communist partners, has boosted the prospect of reforms to encourage growth. The election victory has also raised expectations the government could sell stakes in state-run firms to help fund a widening fiscal deficit and ease the pressure on market borrowing. It is further apprehended that the bears may also run to cover up their pending short positions, which they missed yesterday on low volumes, on fears of further upsurge in the stock prices thereby aiding the buoyancy in the markets. It was observed that stocks across the board hit impressive highs yesterday with those from the realty, banking, capital goods, power, metal and oil sectors attracting buying at sharply higher levels. Market euphoria may continue for some more time before consolidating with an eye on budget proposals.

NIFTY FUTURE (Last close 4332.05)
The counter, as expected, opened gap up yesterday on the back of decisive victory of Congress led UPA and surged a whopping 647 points after multiple positive circuits forcing the trading to halt for the day. The counter after breaching all its weekly levels yesterday may however, face resistance today at 4457.75 which if crossed over with volumes may take NF to 4519/4592. Strong support for NF exists at 4217.25.

BHEL FUTURE (Last close 2107.85)
The company is one of the major suppliers of power equipments but of late has by its own admission taken price cuts in some categories of its power equipment due to intense competition from Chinese players which may affect the bottom line of the company. The stock however, closed yesterday gaining 394 rupees surging a whopping 33% over its previous close albeit with very low volumes. It is now trading at a P/E of 38 times its trailing twelve months earnings which appears expensive but in the heat of momentum and short covering the stock may gain further, but may face resistance at 2193.75, which if crossed with volumes may take the stock to 2235/2302. Strong support for the stock exists at 2028.25.

TATA POWER FUTURE (Last close 1079.45)
The stock after touching a high of 1090 closed yesterday gaining a massive 166 rupees over its previous close albeit with a meager volume of 15 contracts. The counter may face resistance at 1119.75 which if crossed decisively with volumes may take the stock further up to 1145/1172. Strong support for the stock exists at 1036.25.

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.

easy day trading

Hi

Blogged with the Flock Browser