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.

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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.

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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.

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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.