TRADING STRATEGY FOR 6TH MAY 2010
(Based on technical by O P AGARWAL)
Markets recover smartly in late rally
The market, as expected, opened gap down yesterday on doubts about a quick solution to Greece's debt problems which triggered a sell-off across the global markets. However, some hectic buying yesterday in front line stocks during the closing hours pared a majority of the earlier losses and the indices managed to close the session with minimum loss. The Sensex, which dipped to a low of 16,858 in early morning trade, rallied to 17,122 towards the closing hours, finally ended at 17,087 down 49 points. The Nifty closed lower by 23 points at 5124, well off the day's low of 5056. Reality and metal stocks rallied during the closing hours coupled with capital goods and banking stocks. The IT, FMCG, and pharma stocks too witnessed fairly good recovery and closed on a steady note. The market breadth remained in the negative as out of 2944 stocks traded on BSE, 1717 stocks declined and 1144 stocks closed with gains. 83 stocks ended flat. Readers are advised to trade with caution in view of uncertainty in the market.
NIFTY FUTURE (Last close 5120.45)
The counter after gap down opening yesterday remained subdued for the major part of the session with the investors off loading their holdings in view of weak global cues. The market however, saw a smart recovery around late afternoon when hectic buying in front line stocks pulled up the NF to days high in closing minutes. The counter managed to pare a majority of its earlier losses and finally closed flat with minimum loss. The counter to gain further strength needs to trade and remain above 5137.75 whereby it may move up to 5161/5179. Strong short term support for the NF exists at 5095.25 which if breached decisively with volumes then NF may slide to 5076/5045.
GAIL FUTURE (Last close 420.05)
The company owns and operates a natural gas pipeline network of nearly 7,200km with a transportation capacity of 155 million standard cu. m per day. The company plans to enter the electricity business by building power plants along its sprawling gas pipeline network as per its proposal announced last month thereby diversifying in related areas boosting the revenue. Meantime, the stock which is moving range bound since past fortnight closed yesterday with positive bias despite weak market sentiment. The stock shows positive movement on charts and may move up to 425/428 once it trades and remains above 420.75. Strong support for the stock exists at 416.00.
WELSPUN GUJARAT FUTURE (Last close 268.70)
The stock after moving range bound during the past few trading sessions closed yesterday with positive bias gaining marginally over its previous close. The stock appears positive on charts and may move up to 274/278 once it trades and remains above 269.75. Strong support for the stock exists at 265.25.
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
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.
(Based on technical by O P AGARWAL)
Markets recover smartly in late rally
The market, as expected, opened gap down yesterday on doubts about a quick solution to Greece's debt problems which triggered a sell-off across the global markets. However, some hectic buying yesterday in front line stocks during the closing hours pared a majority of the earlier losses and the indices managed to close the session with minimum loss. The Sensex, which dipped to a low of 16,858 in early morning trade, rallied to 17,122 towards the closing hours, finally ended at 17,087 down 49 points. The Nifty closed lower by 23 points at 5124, well off the day's low of 5056. Reality and metal stocks rallied during the closing hours coupled with capital goods and banking stocks. The IT, FMCG, and pharma stocks too witnessed fairly good recovery and closed on a steady note. The market breadth remained in the negative as out of 2944 stocks traded on BSE, 1717 stocks declined and 1144 stocks closed with gains. 83 stocks ended flat. Readers are advised to trade with caution in view of uncertainty in the market.
NIFTY FUTURE (Last close 5120.45)
The counter after gap down opening yesterday remained subdued for the major part of the session with the investors off loading their holdings in view of weak global cues. The market however, saw a smart recovery around late afternoon when hectic buying in front line stocks pulled up the NF to days high in closing minutes. The counter managed to pare a majority of its earlier losses and finally closed flat with minimum loss. The counter to gain further strength needs to trade and remain above 5137.75 whereby it may move up to 5161/5179. Strong short term support for the NF exists at 5095.25 which if breached decisively with volumes then NF may slide to 5076/5045.
GAIL FUTURE (Last close 420.05)
The company owns and operates a natural gas pipeline network of nearly 7,200km with a transportation capacity of 155 million standard cu. m per day. The company plans to enter the electricity business by building power plants along its sprawling gas pipeline network as per its proposal announced last month thereby diversifying in related areas boosting the revenue. Meantime, the stock which is moving range bound since past fortnight closed yesterday with positive bias despite weak market sentiment. The stock shows positive movement on charts and may move up to 425/428 once it trades and remains above 420.75. Strong support for the stock exists at 416.00.
WELSPUN GUJARAT FUTURE (Last close 268.70)
The stock after moving range bound during the past few trading sessions closed yesterday with positive bias gaining marginally over its previous close. The stock appears positive on charts and may move up to 274/278 once it trades and remains above 269.75. Strong support for the stock exists at 265.25.
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
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.