Trading strategy for 26th October 2009

Trading strategy for 11th August 2009

TRADING STRATEGY FOR 11TH AUGUST 2009
(Based on technical by O P AGARWAL)


Markets close lower on selling pressure


The market opened gap up yesterday on the back of strong global cues but failed to sustain at higher levels and pared all the earlier gains on major sell off in the final hour of trade in front line stocks on concerns of bleak prospects and slow progress of monsoon. The market witnessed a couple of rallies yesterday in the afternoon trades pulling it into the positive territory but finally the Sensex closed losing 150 points at 15009 after making a high of 15417 and a low of 14902 during the session while the Nifty closed lower by 43 points at 4437. The Nifty touched a high of 4562 and a low of 4399 yesterday. Besides concerns of a poor monsoon, the spread of swine flu also weighed on the market sentiment leading to loss of confidence among the investors. Auto stocks were the hardest hit in yesterdays trade together with oil and metal, however, IT and selected few from pharma sector remained firm throughout the session. Readers are advised to remain in the sideline for the time being till a clear market trend is visible.


NIFTY FUTURE (Last close 4425.75)
The counter after impressive gap up opening yesterday slipped in the red within first hour of trade on heavy selling in front line stocks amid concerns of dismal prospects of monsoon. The counter did manage to return to the positive territory in early afternoon but it remained short lived and NF slipped to a low of 4388 in the final hour of trade on intense selling pressure. NF finally closed the session losing 55 points. The counter has weakened over the past four trading sessions but a recovery is not ruled out once NF trades and remains above 4444.75 whereby it may move up to 4475/4506. Strong support for the NF exists at 4376.25 which if breached decisively it may slide further to 4341/4319.


RANBAXY LAB FUTURE (Last close 261.90)
The company manufactures and markets, generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active pharmaceuticals and intermediates. The stock of the company closed yesterday flat with positive bias despite negative sentiment in the market. The stock appears positive on charts and may move up to 267/272 once it trades and remains above 262.75. Strong support for the stock exists at 258.25.


JINDAL STEEL AND POWER FUTURE (Last close 2703.30)
The stock has lost around 600 rupees during the past eight trading sessions, after lower than expected Q1 results, from a peak of 3240 on 29th July 09 to a low of 2660 made yesterday. The stock may rebound after consolidation from CMP once it trades and remains above 2712.75 whereby it may move up to 2738/2779. Strong support for the stock exists at 2694.25.



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 11th August 2009

good ones specially ranbaxy.. dont you think all pharma companies have ran so much but ranbaxy have not participated at all

Re: Trading strategy for 11th August 2009

Thank you!

Re: Trading strategy for 11th August 2009

Tremendous job, both (Ranbaxy and Jindal) hit 5% +ve each while the market is extremely volatile today. Hope can expect from you more on coming days.

It will also useful to others, what measurements you're using to judge these stocks?

Re: Trading strategy for 11th August 2009

pls share ur analysis

Trading strategy for 12th August 2009

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


Markets close higher with cautious optimism

The market opened weak yesterday but within minutes returned to the positive territory on bargain hunting at lower levels and short covering by bears. The market thereafter, remained range bound till late afternoon when a sharp sell off pulled down the market in the red but a late hour recovery thereafter finally brought the market to the positive close. Market mood however, remained one of caution amid concerns over monsoon woes and the spread of swine flu. Stocks from auto pack together with reality and metal remained firm yesterday on strong buying support. Select pharma, power and oil stocks too rallied on strong buying support. The Sensex, after making a high of 15218 and a low of 14684 during yesterdays session finally closed the day gaining a modest 64 points at 15074. The Nifty closed with a gain of 33 points at 4471, well off the day's low of 4398. The Nifty touched a high of 4510 yesterday. Readers are advised to remain cautious in view of high volatility in the market.

NIFTY FUTURE (Last close 4464.45)
The counter after opening lower yesterday moved up in the positive territory within half an hour of trade in early morning and thereafter remained range bound till late afternoon when a sudden sell off in front line stocks pulled down the NF to 4423 very near to our level indicated in these columns yesterday. The NF thereafter smartly recovered on bargain hunting and short covering by bears and finally closed the session gaining 38 points. The counter to keep up its upper momentum needs to trade and remain above 4502.75 whereby NF may move further to 4529/4553. Strong support for NF exists at 4428.25 which if breached decisively NF may slip further to 4403/4383.

ABB FUTURE (Last close 658.90)
The company provides power and automation technologies to utility and industry customers worldwide. The stock price of the company got impacted after the company announced its Q1 results last month which were below expectation. However, the company expects to close the current financial year much better with the economy showing signs of improvement. Meantime, the stock after remaining range bound during the past three trading sessions closed yesterday above its short term trend line with positive bias. The stock appears positive on charts and may move up to 667/672 once it trades and remains above 661.25. Strong support for the stock exists at 655.25.

AUROBINDO PHARMA FUTURE (Last close 617.25)
The company which started off as a supplier of drug raw materials to semi- regulated markets, has moved up the value chain and currently sells finished generic drugs in regulated markets. Its net profit surged 216.3% to Rs 126.11 crore on 16.2% rise in net sales to Rs 752.23 crore in Q1 June 2009 over Q1 June 2008. The company has to its credit various USFDA approvals. Meantime, the stock after remaining sideways during the past two trading sessions closed yesterday marginally higher with positive bias albeit with low volumes. The stock appears positive on charts and may move up to 626/631 once it trades with volumes and remains above 619.75. Strong support for the stock exits at 614.25.

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.

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 13th August 2009

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


Markets stage a smart recovery in late hour rally

The market opened gap down yesterday with the Sensex down by 122 points at 14953 on weak cues from the Asian markets and worries about monsoon and swine flu. The market remained in the red throughout despite strong June IIP numbers announced around noon. Market participants preferred to stay away from the markets even at attractively low rates. However, a sustained buying around late afternoon in reality and health care besides selected frontline stocks pulled up the market to take near its days high. The market finally closed with the Sensex losing marginally 54 points at 15020 amid high volatility and intra day swing of more than 300 points. The Sensex made a high of 15044 and a low of 14701 yesterday. The Nifty ended down by 14 points at 4,458. Earlier in the day, it tumbled 112 points to a low of 4,359 but managed to recover and touched a high of 4,474. The market breadth was fairly negative - out of 2,681 stocks traded 1,367 declined while 1,215 advanced.
Meantime, the U.S. Federal Reserve on Wednesday, August 12, resolved to keep the key interest rates unchanged, at 0 to 0.25%. The FOMC observed that the US economic activity is levelling out, and conditions in financial markets have shown further improvement in recent weeks. The DOW closed gaining around 120 points. Back home, readers are advised to trade with caution in view of high volatility in the market.

NIFTY FUTURE (Last close 4460.00)
The counter closed flat yesterday amid high volatility and intra day swing of more than 120 points. The counter remained subdued on monsoon woes and swine flu and dipped to a low of 4351 in early afternoon trades, but bounced back and closed near days high with marginal loss. The counter may gain strength once it trades and remains above 4497.75 whereby it may move up to 4542/4573. Strong support for the NF exists at 4421.25 which if breached decisively it may further slip to 4398/4375.

ICICI BANK FUTURE (Last close 711.15)
The stock of the largest private sector bank in India lost more than100 rupees in a short span of four trading sessions from a high of 807 made on 6th August 2009 amid general sell off in the market during this week. However, the stock appears to be consolidating at current prices and may move up to 724/733 once it trades and remains above 714.25. Strong short term support for the stock exists at 705.75.

DIVIS LAB FUTURE (Last close 473.30)
The companys product range comprises generic active pharmaceutical ingredients (APIs) and custom synthesis of APIs, intermediates and specialty ingredients for innovator pharma giants. The company lost around 20% of its stock valuation during the past nine trading sessions after it posted dismal Q1 results. However, the stock appears to be consolidating at CMP and may move up further to 481/486 once it trades and remains above 475.25. Strong support for the stock exists at 468.25.

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 13th August 2009

Sir, Could you please advise which brokers provide the trailing stop loss service. I am with Jhaveri Securities in Baroda and they dont provide the service. A reply would be much appretiated.

Regards,
hardik

Trading strategy for 14th August 2009

TRADING STRATEGY FOR 14TH AUGUST 2009
(Based on technical by O P AGARWAL)


Markets maintain upward momentum

Markets opened gap up yesterday on the back of strong global cues and positive comments from the US Fed on Wednesday that the economy appeared to be "leveling out" from its worst recession in decades. Back home, the new tax code that was unveiled on Wednesday by the finance ministry which proposes a substantial reduction in rates of tax and abolition of STT also aided the market sentiment. Short covering by bears was also noticed at higher levels. Market participants were seen doing brisk buying which was so sustained and widespread that stocks cutting across sectors made new highs as the day progressed. The Sensex which opened nearly 200 points higher ended the session at 15518 gaining a massive 498 points. The Nifty closed the session yesterday gaining a whopping 147 points at 4605. However, concerns over a below normal monsoon, remained among the investors but strong industrial output and low inflation more than offset that negative. Also, S & Ps view that India's economy will continue to grow despite global downturn on the back of strong domestic demand kept the momentum alive for the market yesterday. However, readers are advised to trade with caution keeping a close watch on market trend.

NIFTY FUTURE (Last close 4611.10)
The counter after huge gap up opening yesterday moved range bound till mid noon when a fresh bout of buying in front line stocks further lifted the indices to days high in final hour of trading. The counter finally closed the session gaining a whopping 151 points. The counter may continue its upward momentum in case it remains and trades above 4644.75 whereby it may further move up to 4665/4697. Strong support for the NF exists at 4575.25 which if breached decisively NF may slide to 4537/4511.

FEDERAL BANK FUTRUE (Last close 223.50)
The Kochi-based private sector bank, has a significant presence in Kerala. Presently Federal Bank has more than 500 branches in India with over 300 in Kerala alone. The Bank's net profit surged 100.1% to Rs 136.38 crore on 21.4% rise in total income to Rs 1021.79 crore in Q1 June 2009 over Q1 June 2008. The bank hopes to maintain its current years progress. Meantime the stock after remaining range bound during the past few trading sessions closed yesterday gaining over one percent with positive bias albeit with low volumes. The stock appears positive on charts and may move further up to 227/231 once it trades with volumes and remains above 224.75. Strong support for the stock exists at 221.00.

PTC INDIA FUTURE (Last close 91.65)
PTC provides power-trading services through purchase from surplus utilities and sales to deficit ones. It catalyses the development of power projects and is also the identified nodal agency for cross border trading and exchange of power with the neighboring countries. It has cross border operations in Nepal, Bhutan and Bangladesh. The companys net profit rose 76.87% to Rs 33.34 crore in the quarter ended June 2009 as against Rs 18.85 crore during the previous quarter ended June 2008.The company hopes to do better in the rest of the quarters. Meanwhile the stock of the company is moving range bound during the past one week with moderate volumes. The stock closed flat yesterday with positive bias. The stock may move up to 95/98 once it trades and remains above 92.25. Strong support for the stock exists at 90.00

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 17th August 2009

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


Markets close the week with cautious optimism

The previous week finally managed to close with the Sensex gaining over 205 points and the Nifty moving up by around 100 points, despite posting losses on the first three trading sessions of the week. The market sentiment was boosted in later part of the week with better industrial production data for June, the unveiling of the new direct tax code by the finance ministry and U.S. Feds optimistic outlook for the U.S. economy. It is hoped that the buoyant IIP data and the proposal to reduce tax rates on individuals and corporates together with scrapping of STT under the new tax code may keep the momentum alive this week. However, the market despite closing the week on a positive note saw FIIs pressing sales on profit taking at higher levels. FIIs have made a net investment of just Rs 264 crore in the domestic stock markets in August. Meantime, investor sentiment appears cautious on weak monsoon conditions which have created drought like situation in several parts of the country. However, government assurance to fight out the monsoon short fall may bring some relief to the market but global cues and FIIs view will also weigh on the market this week.

NIFTY FUTURE (Last close 4575.10)
The counter closed the week gaining 94 points amid high volatility and intra week swing of more than 270 points. The counter recovered sharply on the last two trading sessions of the week on the back of positive global cues, strong IIP data for June 09 and new tax code unveiled by the government. The counter may remain in the range of 4483-4705 this week, break above NF may move up to 4735/4767 or else break below NF may slip further to 4439/4392. For todays trading the counter to gain strength needs to trade and remain above 4602.75 whereby it may move up to 4632/4667. Strong support for the counter exists at 4545.25 which if breached decisively NF may slip to 4523/4502.

LUPIN FUTURE (Last close 978.10)
Lupin is engaged in manufacturing active pharmaceutical ingredients and formulations. The stock after making a huge surge of around 250 rupees during the past one month saw profit taking on Friday last with the stock declining by more than 2%. The stock may witness further profit booking at CMP and may slide to 967/959 once it trades and remains below 975.25. Strong resistance for the stock exists at 987.75. Meantime, 93.96 lakh shares representing 11.30% of the equity capital of the company (as on 30 June 2009) remains pledged by the promoters. The total promoter shareholding in the company is 50.44% (as on 30 June 2009).

HDIL FUTURE (Last close 295.75)
The company is a real estate development company extending services for the development of residential, commercial, and retail real estate . The companys Q1 profit announced last month declined 66.20% to Rs 107.47 crore in the quarter ended June 2009 as against Rs 317.93 crore during the previous quarter ended June 2008. The stock of the company has been on a rise during the past one month mainly on successful completion of QIP through equity dilution. The stock has surged more than 80% during the past one month but witnessed profit taking last Friday. The stock may face further profit booking at CMP and may slide to 287/282 once it trades and remains below 292.25. Strong resistance for the stock exists at 299.75.

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.