Daily Trading strategy

TRADING STRATEGY FOR 12TH MARCH 2009
(Based on technical by O P AGARWAL)



Global cues to set the market trend


The market opened gap down on Monday and remained subdued right till the end as market participants appeared none too keen on making fresh positions owing to weak global markets. Markets remained range bound on Monday for the first hour of trade but declined sharply thereafter in afternoon trades on heavy selling in selected blue chip stocks. However, select power and pharma stocks found support at lower levels while capital goods, IT, telecom, metal and oil stocks were seen struggling for support and remained in the negative. While the Sensex, which had plunged to a low of 8110 in intra-day trades, ended with a loss of 165 points or 1.99% at 8160 at a three-year low, the Nifty closed lower by 47 points or 1.79% at 2573.15, a few points off its low of 2555.60. FMCG and realty stocks came under heavy selling pressure on Monday as FIIs continue to offload their holdings in view of depreciating rupee and redemption pressure. Further, markets will be keenly watching IIP numbers for January 09 which will be announced today which as per Moodys are expected to fall again in January by 3.5% due to sharp reduction in external orders and the dramatic slowdown in the domestic economy. Meantime, U S markets staged a sharp rebound on Tuesday on the news that Citigroup is turning a profit during the first two months of 09 which buoyed hopes that stricken financial sector can recover. Back home, however, readers are advised to trade with caution and watch the market trend before taking large positions.


NIFTY FUTURE (Last close 2548.40)
NF closed on Monday losing 60 points over its previous close making a low of 2531, absolutely near its weekly support as indicated in these columns on Monday and rebounded. The counter may yet seek support near its weekly levels but to gain upward strength NF needs to trade and remain above 2577.75, whereby it may move up to 2609/2643. Immediate support for NF exists at 2527.75, which if breached decisively NF may slide to 2491/2478.


LIC HOUSING FINANCE FUTURE (Last close 187.15)
The company is operating in a very large business segment with not many competitors. The company has a very stable business model and is steadily growing in the home finance space. However, because of overall bad sentiment prevailing in the market the stock has lost investors confidence but appears a value buy at current price. Meanwhile, the stock closed flat on Monday with marginal gain with moderate volumes. The stock appears to be consolidating at current levels and may move up to 192/196 once it trades above 188.25. Strong support for the stock exists at 183.25.


HDFC BANK FUTURE (Last close 785.80)
The premiere private sector banking stock has lost substantial value during the past one month amid general sell off in the market on weak global sentiment in the financial sector. The stock appears to be consolidating at current levels and may move up to 804/817 once it trades and remains above 791.75. Strong support for the stock exists at 783.00.


PNB FUTURE (Last close 301.95)
The PSU banking stock has lost more than 250 rupees during the past two months from a high of 545 on 5th January 09 to a low of 286 on 6th March 09 amid weak market sentiment and particularly of banking sector. The stock is moving range bound for the past two trading sessions and may move up to 311/319 once it trades and remains above 305.75. Strong support for the stock exists at 299.50.



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 above. 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 13th March 2009

TRADING STRATEGY FOR 13TH MARCH 2009
(Based on technical by O P AGARWAL)


Markets close positive on global cues


Markets yesterday opened firm with a positive gap with Sensex opening higher by 115 points moving further to a high of 8439 in afternoon trades. Shares from I T auto, banking, oil, metal, and FMCG sectors surged with impressive gains together with selected stocks from capital goods and pharma sector. Markets finally ended the session with Sensex gaining 183 points. The Nifty closed gaining 44 points or 1.72% at 2617.45. In intra-day trades it touched a high of 2574. Meantime, inflation figures released yesterday showed further decline thereby paving way for the apex bank to revise interest rates. However, industrial production declined for the third time in fours months in January 2009. The index of industrial production (IIP) declined 0.5% in January 2009 against an upwardly revised 0.6% decline in December 2008, government data released during trading hours yesterday showed. Industrial production had risen 6.18% in January 2008. Readers are advised to trade watching the market trend.


NIFTY FUTURE (Last close 2600.70)
NF opened gap up yesterday on the back of positive global cues and remained steady throughout the session except at close when profit booking in selected heavyweight stocks was witnessed. NF closed the day gaining 52 points with positive bias. The counter will gain further upward momentum once it trades and remains above 2628.75, whereby it may move up to 2661/2687. Strong support for NF exists at 2573.25, which if breached decisively, it may slide to 2546/2531.


LUPIN FUTURE (Last close 593.10)
The company is engaged in manufacturing active pharmaceutical ingredients and formulations. The company posted lower profit during the third quarter on general slackness in the market. However, the stock of the company is moving range bound for the past three trading sessions after making a high of 659 on 26th February 09. The stock closed yesterday flat with positive bias albeit with low volumes. The stock may move up to 603/609 once it trades with volumes and remains above 595.75. Strong support for the stock exists at 590.25.


JINDAL STEEL AND POWER FUTURE (Last close 1018.45)
The company has business interests in steel production, power generation, mining iron ore, coal and diamond exploration/mining. The company has set up a rail and universal beam mill producing the world's longest 120-meter long finished rails for the first time in India. The company is fundamentally strong having strong bottom line with various expansion projects in hand, which may however get delayed/relocated due to current economic down turn. The company has recently been allotted a coal block in Orissa for a coal-to-liquid project costing 420 billion rupees, having a capacity of 4 million tonnes per year. The stock of the company is moving range bound for the past one week and closed yesterday gaining more than one percent with positive bias. The stock may move up to 1048/1063 once it trades and remains above 1026.26. Strong support for the stock exists at 1013.25.



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 above. 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 16th March 2009

TRADING STRATEGY FOR 16TH MARCH 2009
(Based on technical by O P AGARWAL)


Markets close the week with strong rally


Markets staged a sharp rally during the truncated previous week on the back of strong global cues primarily from the U S markets. Market participants are hopeful that with signs of recovery in the economy and sharp fall in inflation, the apex bank may consider a further rate cut which may lend much needed support to the markets. Foreign institutional investors turned buyers on Friday and bought shares worth Rs 299.24 crore after consistently selling for over a month. However, FIIs activity will be keenly watched by the market in the near term. Meantime, with the spurt in auto sector shares during the past two months, it appears that various concessions extended by the government in the past have started yielding results which is reflected in higher auto sales and increased demand for funds from the corporate sector. A moderate pick up in the production of consumer, capital goods and services sector too suggest a rise in investment and consumption demand which may get further boost with the huge spending by the political parties and the government in the next two months ahead of general elections. Meanwhile, I T advance payments by the corporate sector due on 15th March 09 will also indicate the pace of recovery during the fourth quarter. However, owing to political uncertainty, investor sentiment may remain edgy and market participants may avoid building large positions. Readers are therefore, advised to watch the current rally for the next two trading sessions and wait for the markets to stabilize before making large commitments.


NIFTY FUTURE (Last close 2716.20)
NF closed the week gaining more than100 points amid high volatility and intra week swing of more than 200 points on the back of strong global cues primarily from the U S markets. The counter appears to retain its upward momentum as is evident from weekly charts. NF may oscillate this week between 2612-2819, break above NF may move up to 2849/2870, or else break below NF may slip to 2564/2537. For todays trading the counter will gain strength once NF trades and remains above 2741.75 whereby it may move up to 2765/2789. Strong support for NF exists at 2682.50, which if breached decisively NF may slip to 2653/2635.


PUNJ LLYOD FUTURE (Last close 73.95)
The company provides engineering, designing, procurement, construction and project management services for energy industry and infrastructure sector. The companys net profit rose 128.12% to Rs 89.33 crore in the quarter ended December 2008 as against Rs 39.16 crore during the previous quarter ended December 2007. The company is fundamentally strong with large pending orders. However, the stock of the company lost heavily during the past three months amid general sell off in the market. Meantime, the stock closed the week gaining 5% over its previous close with positive bias. The stock may move up to 79/83 once it trades and remains above 74.75. Strong support for the stock exists at 71.25.


SCI FUTURE (Last close 73.35)
The company is a state-run shipping company, operates and manages a fleet of line vessels, tankers, bulk carriers, passenger vessels and offshore vessels. The company was able to maintain its net profit at Rs 185.43 crore in the quarter ended December 2008 as against Rs 176.78 crore during the previous quarter ended December 2007 despite difficult economic conditions prevailing in the world markets. The company has ambitious plans to augment its fleet size to retain its prominent position in the shipping industry. Meantime the stock valuation has suffered sharp setback during the past three months amid general weakness in the capital market. The stock closed the week flat with marginal gain with low volumes after moving range bound during the past week. The stock appears to be consolidating at current levels and may move up to 77/81 once it trades with volumes above 73.75. Strong support for the stock exists at 69.50.



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

Trading strategy for 17th March 2009

TRADING STRATEGY FOR 17TH MARCH 2009
(Based on technical by O P AGARWAL)


Market rally continues


Markets opened flat yesterday and remained range bound till noon but rallied sharply in late afternoon trade on the back of firm cues from the Asian and European markets and higher U S markets index futures. Market participants turned aggressive buyers in late afternoon trades and picked up stocks cutting across sectors including index heavy weight ones. Markets finally closed the session with the Sensex at 8943 gaining handsomely 186 points. Sensex had made a high of 8955 in late afternoon trade yesterday. The Nifty, which rose to 2781.95, settled at 2777.25 with a gain of 58 points or 2.13%. Meantime, I T advance figures released yesterday do not augur well except a few selected ones. Meantime, the markets appear positive but readers are advised to trade with caution and remain selective in their commitments.

NIFTY FUTURE (Last close 2774.20)
NF after opening flat and moving range bound till noon rallied sharply in late afternoon trades amid all round buying led by Reliance Industries and selected blue chip stocks. NF ended the session gaining 58 points closing near days high. The counter appears positive on weekly charts and may gain further strength once it trades and remains above 2792.75, whereby it may move further to 2815/2837. Strong support for NF exists at 2732.75, which if breached decisively NF may slide to 2717/2698.

PRAJ INDUSTRIES FUTURE (Last close 49.00)
The company offers innovative solutions to significantly add value in bio-ethanol, bio-diesel and brewery plants and related wastewater treatment systems for customers, worldwide. The net profit of the company rose 19.9% to Rs 47.31 crore on 15.9% increase in net sales to Rs 208.82 crore in Q3 December 2008 over Q3 December 2007. The company has recently filed for a patent for the intellectual property that will allow the company to produce ethanol from corn cob and sugarcane bagasse for which the company has established a cellulosic ethanol pilot plant and R&D centre, called Praj Matrix in Pune. The prospects of the company appear promising. Meantime, the stock of the company after moving range bound during the past four trading sessions closed flat yesterday with marginal gain. The stock appears positive and may move up to 53/56 once it trades and remains above 49.75. Strong support for the stock exists at 47.50.

YES BANK FUTURE (Last close 44.40)
The private sector bank almost doubled its Oct-Dec net profit as it benefited from the downward movement in interest rates and posted a net profit of 1.06 billion rupees during the quarter against 540 million rupees a year earlier. The total income of the bank rose to 7.26 billion rupees as compared to 4.43 billion rupees a year earlier. The achievement is indeed commendable. Meantime, the stock of the bank has lost more than 50% of its value since early January 09 on weak sentiment prevailing in the capital markets. The stock of the bank is moving sideways for the past two trading sessions and appears positive on charts and may move up to 48/51 once it trades above 45.25. Strong support for the stock exists at 43.25.

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 18th March 2009

TRADING STRATEGY FOR 18TH MARCH 2009
(Based on technical by O P AGARWAL)



Markets remain positive despite cool off


Markets opened flat yesterday but rallied till noon on news of foreign fund buying, data showing a surge in FDI in January 2009, and on mixed advance tax payment by Indian corporates suggesting recovery in a slowing economy. Market participants were seen active buyers initially which pushed the Sensex above 9000 in early afternoon trades but the rally remained short lived and markets witnessed sharp sell off pushing the Sensex to 8801. The markets finally ended the session at 8863, netting a loss of 79 points. The Nifty closed flat at 2757 nearly 50 points down from a high of 2805 it made during intra day trades. I T stocks remained in the negative through out the session yesterday with banking and oil stocks too remaining weak. Meantime, FIIs remained buyers yesterday worth Rs. 415 crores as per data released by the Stock Exchanges. Markets appear positive despite profit booking at higher levels yesterday and the rally may continue this week.


NIFTY FUTURE (Last close 2751.75)
NF opened flat yesterday and remained range bound till noon but sharply declined in afternoon trades on sell off in banking and index heavy weight stocks. The counter however, remains with positive bias and may move up to 2798/2835 once NF trades and remains above 2775.75. Strong support for NF exists at 2726.25, which if breached decisively, it may slide to 2699/2681.


L & T future (Last close 617.35)
The company is India's largest engineering and construction conglomerate with diverse interests in a range of industries such as construction, hydraulic equipment, electrical and electronic power services, fertiliser projects, medical electronics, financial services and information technology having order book for engineering and construction, its largest division, at more than 60K crores. The stock is moving range bound for the past three trading sessions with good volumes. The stock closed yesterday with positive bias and may move up to 629/636 once it trades and remains above 621.75. Strong support for the stock exists at 612.25.


TATA CHEMICALS FUTURE (Last close 112.30)
The company is India's leading manufacturer of inorganic chemicals. It also manufactures fertilisers and food additives. The stock has lost around 50% of its value since January 09 from a high of 183 made on 7th January 09 to a low of 100 on 12th March 09 amid general sell off in the market and dismal Q3 results posted by the company. However, the stock appears to be consolidating at current levels and may move up to 117/122 once it trades and remains above 113.75. Strong support for the stock exists at 109.25. Meantime, with the firming up of world Urea prices, the company hopes to benefit to the tune of US$ 25 per tonne resulting in 7% increase in FY10 EPS.



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.

Re: Trading strategy for 18th March 2009

Thanks Agarwalji

Trading strategy for 19th March 2009

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


Market rally continues

Markets opened gap up yesterday on the back of strong global cues and remained positive through out the session. However, the markets witnessed intermittent profit booking at higher levels but the market came sharply off the higher level in late afternoon trades on selling by market participants ahead the conclusion of a crucial US Federal Reserve meet today. Investors were seen picking up stocks from realty, metal, capital goods and banking sectors with renewed vigour. There were smart gains for select power, auto, IT and pharma stocks as well. The Sensex, which opened nearly 100 points up at 8956 and rose to a high of 9120 in intra-day trades, ended the session at 8976 with a sharp gain of 112 points or 1.27% while the Nifty closed 37.25 points or 1.35% up at 2794.70. In intra-day trades yesterday, the Nifty hit a high of 2836.05. Meantime, U S markets rallied and closed in the positive yesterday after the news that U S FED will start buying Treasurys to help open up tight credit markets. U S stocks have risen for five out of the last six days showing sincere efforts by the authorities to shore up the sagging economy. Back home, readers are advised to trade cautiously with close watch on the market trend.

NIFTY FUTURE (Last close 2779.85)
NF opened gap up yesterday on the back of strong global cues and remained in the positive territory through out the session making an intra day high of 2830. The counter appears to be consolidating at current levels and may move further up to 2827/2849 once NF trades and remains above 2798.75. Strong support for NF exists at 2758.25, which if breached decisively it may slide to 2737/2713.

TITAN INDUSTRIES FUTURE (Last close 741.40)
The company retails branded jewellery, watches, and eyewear, and is among the few retailers to have managed strong growth in the ongoing slowdown. The company plans to augment its store network across India by adding nearly 40 Titan stores by March 2010, company's COO Harish Bhat said recently. The stock after moving range bound for the past three trading sessions closed yesterday above its weekly resistance with moderate gains over its previous close. The stock appears positive on charts and may move up to 757/769 once it trades and remains above 745.75. Strong support for the stock exists at 733.25.

CHAMBAL FERTILISERS FUTURE (Last close 38.35)
The company is one of the prominent manufacturers of fertilizers with strong fundamentals. The companys profit rose 18.86% to Rs 75.30 crore in the quarter ended December 2008 as against Rs 63.35 crore during the previous quarter ended December 2007 with corresponding increase in sales. The company hopes to start getting gas from the KG basin of Reliance, which in turn will add to the bottom line of the company. Further, with the hardening of world urea prices the company will be benefited to the tune of US$ 25 per tonne which may enhance estimated FY10 EPS by 13%. Meantime, the stock is moving range bound for the past three trading sessions and closed yesterday gaining around three percent over its previous close. The stock may move up to 42-45 once it trades above 38.75. Strong support for the stock exists at 37.25.

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.

Re: Trading strategy for 19th March 2009

Dear Agarwalji,
Could you please tell something about Option, such as short straddle etc

Trading strategy for 20th March 2009

TRADING STRATEGY FOR 20TH MARCH 2009
(Based on technical by O P AGARWAL)


Markets end flat amid choppy trade


The market opened gap up yesterday on the back of positive global cues but profit booking by the market participants at higher levels around noon pulled down the Sensex into the red. Market witnessed sharp selling in index heavy weight stocks on weak Asian markets during the early noon but the markets bounced back from lower levels after strong opening in the European bourses. Meantime, inflation dropped down to a historic low - it rose 0.44% in the year through 7 March 2009, a record low for the current series which experts feel may soon turn negative, opening the way for the apex bank to cut interest rates further to prop up demand and growth. However, to allay fears Government officials said the country was not at risk of sustained deflation, conversely low inflation would enable policy makers to take more measures to stimulate a slowing economy hit hard by the global slump and sagging domestic demand. Further, the Sensex, after making a high of 9086 in early trade plunged to a low of 8900 around mid afternoon, but ended the session at 9001.75 with a marginal gain of 25 points over its previous close. The Nifty closed 12.45 points or 0.45% up at 2807.15, around 36 points off its intra-day low of 2771.35. The Nifty, which opened at 2797, had moved on to 2822.25 in early trade yesterday morning. However, the market yesterday remained choppy through out the session and investors appeared a bit wary of building fresh positions ahead of F & O expiry next week. Readers are therefore, advised to avoid making large positions till markets stabilize.


NIFTY FUTURE (Last close 2800.75)
NF opened gap up yesterday on strong global cues but closed flat with marginal gain amid high volatility and intra day swing of around 60 points. NF found support yesterday at 2757, very near to the level indicated in these columns and bounced back to close in the positive. Meantime, NF despite closing near days high will not gain strength unless it trades and remains above 2833.75, whereby it may move up to 2853/2867. Strong support for NF exists at 2767.25, which if breached decisively, it may slide to 2753/2731.


NALCO FUTURE (Last close 224.85)
Nalco manufactures and distributes aluminum products where Government of India holds more than 85% of equity. The companys Q3 profits declined by 1/3 rd due to adverse market conditions but the company is hopeful of improved markets ahead. Meantime, the stock of the company gained more than 30% in a short span from a low of 175 made on 3rd March 09 to a high of 234 on 18th March 09 on sustained buying. The stock closed yesterday with marginal loss and may witness further profit booking at current levels once it trades and remains below 223.25, whereby it may slide to 217/213. Strong resistance for the stock exists at 227.75.


MAHARASHTRA SEAMLESS FUTURE (Last close 128.20)
The company is a market leader in seamless & higher DIA ERW pipes and belongs to D.P Jindal Group. The board of the company had recommended dividend at the rate of 100% for the financial year ended 31 March 2008. The company has large unexecuted orders from reputed clients including ONGC. The companys net profit rose 25.27% to Rs 64.09 crore in the quarter ended December 2008 as against Rs 51.16 crore during the previous quarter ended December 2007. Sales too rose 56.01% to Rs 588.13 crore in the quarter ended December 2008 as against Rs 376.98 crore during the previous quarter ended December 2007 despite slowing economy. Meantime, the stock of the company is moving with positive bias during the past three trading sessions and closed yesterday with more than 2% gain over its previous close. The stock appears positive and may move up to 133/137 once it trades albeit with volumes, above 129.25. Strong support for the stock exists at 124.50.



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 23rd March 2009

TRADING STRATEGY FOR 23RD MARCH 2009
(Based on technical by O P AGARWAL)


Markets close the week with cautious optimism
.

Markets closed last week with cautious optimism ahead of the expiry of March 2009 derivatives contracts this Thursday. Market participants are hopeful of further rate cuts by the Reserve Bank of India to prop up demand in a sluggish economy with the wholesale price inflation at record low. Inflation based on wholesale prices rose 0.44% in the week to 7 March 2009 from a year earlier after gaining 2.43% in the previous week. Meantime, FIIs future activities will be keenly watched as they remained net buyers worth Rs8.75bn during the previous week showing their positive attitude towards the market. Market sentiment worldwide remained bullish last week on the U S Feds move to pump $1 trillion into US banking system. Back home, the Sensex hit an intra-week high of 9,120 and low of 8,697 and the Nifty hit an intra-week high of 2,836 and low of 2,701.9. Meantime, investors are unlikely to build large positions due to political uncertainty with general election to be held in mid-April 2008 to mid-May 2009. Readers are therefore, advised to trade with caution and wait for the markets to stabilize.


NIFTY FUTURE (Last close 2801.65)
NF closed the week gaining 85 points amid high volatility and intra week swing of more than 130 points. The counter may witness high volatility ahead of F & O expiry for March series derivative contracts this Thursday. Meantime, NF may remain in the range of 2719-2871 during this week, break above NF may move up to 2893/2927 or else break below, NF may slide to 2678/2645. For todays trading the counter will gain strength once it trades and remains above 2831.75, whereby it may move up to 2854/2869. Strong support for NF exists at 2757.25, which if breached decisively NF may slide to 2739/2722.


TATA COMMUNICATIONS FUTURE (Last close 461.20)
The company is a leading provider of the new world of communications with ambitious plans for expansion. The company in its latest move last week tied up with the SEACOM cable system enabling it to provide fully integrated network services from South Africa, Mozambique, Tanzania and Kenya to its networks in Europe, Asia and India. Meantime, the stock of the company after remaining range bound during the past week closed with a gain of 2% with good volumes. The stock appears positive on weekly charts and may move up to 471/476 once it trades and remains above 463.75. Strong support for the stock exists at 457.75.


LIC HOUSING FUTURE (Last close 205.80)
The firm provides long-term finance to individuals for purchase/construction/repair and renovation of new/ existing flats/houses. The company also provides finance on existing property for business/personal needs and gives loans to professionals for purchase/construction of clinics/nursing homes/diagnostic centres / office space. Net profit of the company rose 26.70% to Rs 134.33 crore in the quarter ended December 2008 as against Rs 106.02 crore during the previous quarter ended December 2007. The stock of the company is moving sideways for the past four trading sessions with positive bias albeit with low volumes. The stock appears positive on weekly charts and may move up to 211/215 once it trades with volumes above 206.75. Strong support for the stock exists at 201.75.



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.