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.

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