Trading strategy for 12th April 2010
TRADING STRATEGY FOR 12TH APRIL 2010
(Based on technical by O P AGARWAL)
Markets close on buoyant note
The Sensex continued it’s up move for the ninth straight week, gaining another 240 points to close the week at 17933 after hitting and crossing the 18K level for the first time after more than two years primarily on sustained buying by foreign funds. The Nifty too remained north bound adding 71 points, to close at 5,361 from last weekend's close. Expectations of good fourth quarter corporate results kept the market sentiment in good spirit throughout the previous week. The overall sentiment indicates buoyancy although a definite trend would emerge by the major Q4 results that will start rolling out from this week onwards. The cues from the global markets and the crisis at Greece may also play a key role in deciding the future market trend. Further, FIIs have pumped in more than Rs 24,000 crore in the equity market during the current year mainly post Budget, according to SEBI's data. Meantime, food inflation rose to 17.70 per cent for the week ended March 27, fuelling expectations that the apex bank may further tighten rates in its annual monetary policy next week on April 20. Readers are advised to remain vigil and watch the trend carefully before building fresh positions.
NIFTY FUTURE (Last close 5364.90)
The counter closed the week gaining about one percent amid moderate volatility and intra week swing of over 100 points. The counter has maintained it’s up move for the ninth straight week. The counter appears overbought and hence profit taking at higher levels is not ruled out. The NF this week may remain in the range of 5305-5419, break above may take NF to 5446/5477, or else break below NF may slip to 5269/5234. For today’s trading the NF to maintain it’s up move needs to trade and remain above 5382.75 whereby it may further move up to 5406/5429. Strong support for the NF exists at 5337.25 which if breached decisively with volumes then NF may slide to 5316/5289.
DCHL FUTURE (Last close 160.55)
The company is a media company but with IPL franchisee purchased around 500 crores in 2008, the valuation of which has increased more than three fold with the last auction of Pune and Cochin teams between Rs 1500 and Rs 1700 crores. Moreover, IPL appears an attractive opportunity for the franchises owing to its proven ability to attract significant advertising revenue. Further, the company’s net profit rose 202 % to Rs 77.67 crore in the quarter ended December 2009 as against Rs 25.67 crore during the previous quarter ended December 2008. Meantime, the stock after consolidation during the previous week closed with about 4% gain amid high volumes. The stock appears positive on charts and may move up to 165/167 once it trades and remains above 161.50. Strong support for the stock exists at 158.50.
FORTIS HEALTH FUTURE (Last close 170.60)
The company is engaged in healthcare services having network of hospitals which includes multi-specialty as well as super-specialty centers. The company reported net profit of Rs 12.40 crore in the quarter ended December 2009 as against net loss of Rs 1.67 crore during the previous quarter ended December 2008. The company besides other acquisitions in the past recently acquired nearly 23.9% strategic stake in Singapore-based healthcare group, Parkway Holdings from TPG Capital (formerly Texas Pacific Group), in an off-market deal, estimated to be around USD 685.3 million. The company holds a bright future. Meanwhile, the stock of the company after slipping more than 10% during the past six trading sessions appears to be consolidating at current levels and appears positive. The stock may move up to 175/178 once it trades and remains above 171.50. Strong support for the stock exists at 167.50.
BPCL FUTURE (Last close 508.25)
The stock of the company is languishing in the past owing to delay in commissioning of the Bina refinery, slower completion of captive power plant and decline in net profit for the quarter ended December 2009. The stock however, after remaining subdued during the past one week appears to be consolidating at current levels. The stock shows a positive formation on charts and may move up to 515/519 once it trades and remains above 509.75. Strong support for the stock exists at 505.50.
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 12TH APRIL 2010
(Based on technical by O P AGARWAL)
Markets close on buoyant note
The Sensex continued it’s up move for the ninth straight week, gaining another 240 points to close the week at 17933 after hitting and crossing the 18K level for the first time after more than two years primarily on sustained buying by foreign funds. The Nifty too remained north bound adding 71 points, to close at 5,361 from last weekend's close. Expectations of good fourth quarter corporate results kept the market sentiment in good spirit throughout the previous week. The overall sentiment indicates buoyancy although a definite trend would emerge by the major Q4 results that will start rolling out from this week onwards. The cues from the global markets and the crisis at Greece may also play a key role in deciding the future market trend. Further, FIIs have pumped in more than Rs 24,000 crore in the equity market during the current year mainly post Budget, according to SEBI's data. Meantime, food inflation rose to 17.70 per cent for the week ended March 27, fuelling expectations that the apex bank may further tighten rates in its annual monetary policy next week on April 20. Readers are advised to remain vigil and watch the trend carefully before building fresh positions.
NIFTY FUTURE (Last close 5364.90)
The counter closed the week gaining about one percent amid moderate volatility and intra week swing of over 100 points. The counter has maintained it’s up move for the ninth straight week. The counter appears overbought and hence profit taking at higher levels is not ruled out. The NF this week may remain in the range of 5305-5419, break above may take NF to 5446/5477, or else break below NF may slip to 5269/5234. For today’s trading the NF to maintain it’s up move needs to trade and remain above 5382.75 whereby it may further move up to 5406/5429. Strong support for the NF exists at 5337.25 which if breached decisively with volumes then NF may slide to 5316/5289.
DCHL FUTURE (Last close 160.55)
The company is a media company but with IPL franchisee purchased around 500 crores in 2008, the valuation of which has increased more than three fold with the last auction of Pune and Cochin teams between Rs 1500 and Rs 1700 crores. Moreover, IPL appears an attractive opportunity for the franchises owing to its proven ability to attract significant advertising revenue. Further, the company’s net profit rose 202 % to Rs 77.67 crore in the quarter ended December 2009 as against Rs 25.67 crore during the previous quarter ended December 2008. Meantime, the stock after consolidation during the previous week closed with about 4% gain amid high volumes. The stock appears positive on charts and may move up to 165/167 once it trades and remains above 161.50. Strong support for the stock exists at 158.50.
FORTIS HEALTH FUTURE (Last close 170.60)
The company is engaged in healthcare services having network of hospitals which includes multi-specialty as well as super-specialty centers. The company reported net profit of Rs 12.40 crore in the quarter ended December 2009 as against net loss of Rs 1.67 crore during the previous quarter ended December 2008. The company besides other acquisitions in the past recently acquired nearly 23.9% strategic stake in Singapore-based healthcare group, Parkway Holdings from TPG Capital (formerly Texas Pacific Group), in an off-market deal, estimated to be around USD 685.3 million. The company holds a bright future. Meanwhile, the stock of the company after slipping more than 10% during the past six trading sessions appears to be consolidating at current levels and appears positive. The stock may move up to 175/178 once it trades and remains above 171.50. Strong support for the stock exists at 167.50.
BPCL FUTURE (Last close 508.25)
The stock of the company is languishing in the past owing to delay in commissioning of the Bina refinery, slower completion of captive power plant and decline in net profit for the quarter ended December 2009. The stock however, after remaining subdued during the past one week appears to be consolidating at current levels. The stock shows a positive formation on charts and may move up to 515/519 once it trades and remains above 509.75. Strong support for the stock exists at 505.50.
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.