TRADING STRATEGY FOR 16TH NOVEMBER 2009
(Based on technical by O P AGARWAL of bazaarbhavishya)
Global cues to set trend this week
The markets closed the week with the Sensex surging past the 17000 mark and the Nifty closing above the 5000 mark mainly driven by FIIs and domestic institutions who remained net buyers throughout the previous week. Retail investors participation remained negligible last week and instead they lightened their holding in view of uncertain market conditions. The rally last week was mainly fuelled by strong FIIs buying, buoyant market sentiment on the back of the government's clarification and push towards disinvestment, and better than expected IIP nos. Strong buying was seen in banking, automobile, and technology sectors, and some index heavyweights. The markets this week will mainly be driven by the global cues in the absence of any domestic triggers. The readers are however, advised to remain cautious in view of high volatility and uncertain market trend.
NIFTY FUTURE (Last close 5002.65)
The counter closed the week near its weekly high with an impressive gain of more than 200 points amid high volatility and intra week swing of more than 240 points. The weekly chart pattern for the NF remains positive but slightly in overbought zone. The NF this week may remain in the range of 4917-5124, break above may take the counter to 5171/5228 or else break below may pull down the NF to 4877/4805. For todays trading the NF will gain upward momentum once it trades and remains above 5029.75 whereby it may move further to 5055/5088. Strong support for the NF exists at 4966.25 which if breached decisively then NF may slide to 4944/4916.
RELIANCE INDUSTRIES FUTURE (Last close 2119.90)
The stock closed the week gaining over 9% from its previous close on informed buying. The stock has remained under pressure in the past on lower GRM and court case with RNRL on gas issue. The stock meantime appears positive on weekly charts and may move up to 2143/2176 once it trades and remains above 2125.50. Strong support for the stock exists at 2105.50.
RELIANCE CAPITAL FUTURE (Last close 825.55)
The company belongs to ADA Group. The company has a customer base of over 18 million and among its various group companies Reliance Capital Asset Management recorded a 16 per cent YoY rise in net profit at Rs 39 crore for the quarter ended September 2009, reflecting a higher average assets under management (AUM). The average AUM of Reliance MF rose by 37 per cent at Rs. 1,18,251 crore at the end of September 2009.As of September 30, the net worth of the company stood at Rs 7,669 crore. Meantime, the stock of the company closed the week gaining 5% over its previous close with average volumes. The stock appears positive on weekly charts and may move up to 845/857 once it trades and remains above 831.75. Strong support for the stock exists at 816.25.
RELIANCE INFRA FUTURE (Last close 1156.55)
The company belongs to ADA Group which is currently developing 13 infrastructure projects aggregating over Rs 25,000 crore. At the end of September 09 quarter, the company's cash and cash equivalents stood at Rs 8,017 crore, while its EPC order book stood at Rs 19,620 crore. The company holds a bright future. Meantime, the stock closed the week gaining 5% over its previous close with average volumes. The stock appears positive on weekly charts and may move up to 1185/1210 once it trades and remains above 1165.25. Strong support for the stock exists at 1141.25.
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
(Based on technical by O P AGARWAL of bazaarbhavishya)
Global cues to set trend this week
The markets closed the week with the Sensex surging past the 17000 mark and the Nifty closing above the 5000 mark mainly driven by FIIs and domestic institutions who remained net buyers throughout the previous week. Retail investors participation remained negligible last week and instead they lightened their holding in view of uncertain market conditions. The rally last week was mainly fuelled by strong FIIs buying, buoyant market sentiment on the back of the government's clarification and push towards disinvestment, and better than expected IIP nos. Strong buying was seen in banking, automobile, and technology sectors, and some index heavyweights. The markets this week will mainly be driven by the global cues in the absence of any domestic triggers. The readers are however, advised to remain cautious in view of high volatility and uncertain market trend.
NIFTY FUTURE (Last close 5002.65)
The counter closed the week near its weekly high with an impressive gain of more than 200 points amid high volatility and intra week swing of more than 240 points. The weekly chart pattern for the NF remains positive but slightly in overbought zone. The NF this week may remain in the range of 4917-5124, break above may take the counter to 5171/5228 or else break below may pull down the NF to 4877/4805. For todays trading the NF will gain upward momentum once it trades and remains above 5029.75 whereby it may move further to 5055/5088. Strong support for the NF exists at 4966.25 which if breached decisively then NF may slide to 4944/4916.
RELIANCE INDUSTRIES FUTURE (Last close 2119.90)
The stock closed the week gaining over 9% from its previous close on informed buying. The stock has remained under pressure in the past on lower GRM and court case with RNRL on gas issue. The stock meantime appears positive on weekly charts and may move up to 2143/2176 once it trades and remains above 2125.50. Strong support for the stock exists at 2105.50.
RELIANCE CAPITAL FUTURE (Last close 825.55)
The company belongs to ADA Group. The company has a customer base of over 18 million and among its various group companies Reliance Capital Asset Management recorded a 16 per cent YoY rise in net profit at Rs 39 crore for the quarter ended September 2009, reflecting a higher average assets under management (AUM). The average AUM of Reliance MF rose by 37 per cent at Rs. 1,18,251 crore at the end of September 2009.As of September 30, the net worth of the company stood at Rs 7,669 crore. Meantime, the stock of the company closed the week gaining 5% over its previous close with average volumes. The stock appears positive on weekly charts and may move up to 845/857 once it trades and remains above 831.75. Strong support for the stock exists at 816.25.
RELIANCE INFRA FUTURE (Last close 1156.55)
The company belongs to ADA Group which is currently developing 13 infrastructure projects aggregating over Rs 25,000 crore. At the end of September 09 quarter, the company's cash and cash equivalents stood at Rs 8,017 crore, while its EPC order book stood at Rs 19,620 crore. The company holds a bright future. Meantime, the stock closed the week gaining 5% over its previous close with average volumes. The stock appears positive on weekly charts and may move up to 1185/1210 once it trades and remains above 1165.25. Strong support for the stock exists at 1141.25.
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