Daily Trading strategy

[opagarwal]

Trading strategy for 6th July 2009

TRADING STRATEGY FOR 6TH JULY 2009
(Based on technical by O P AGARWAL)


Budget outcome crucial for the markets
The Union Budget 2009-10 to be presented today will set the market trend since the document will spell out government's policy stance leading to much awaited reforms. Markets have been moving steady during the past few trading sessions on high hopes that the Budget will place thrust on sectors like infrastructure and construction, a suitable plan for disinvestment and insurance sector reforms. Market participants are hopeful that the Budget may also provide substantial relief on STT, FBT and other such taxes leading to increased turnover and substantial saving in the hands of investors. The Budget may also spell out ways for easy financing of long gestation infrastructure projects and suitable relief for builders and home loan borrowers to accelerate the pace. However, besides concessions it is anticipated that the government may rollback or revise suitably some of the tax sops given earlier to certain sectors which are doing well at present. Meanwhile, FIIs activity will also play key role in determining the market direction along with the policy reforms in the Budget. Markets are expected to remain highly volatile today and therefore readers are advised to trade with utmost caution with strict stops.

NIFTY FUTURE (Last close 4424.65)
The counter after witnessing high volatility and intra week swing of more than 200 points last week closed with marginal gain of around one percent. The counter will remain highly volatile today in view of budget presentation. Meantime, weekly chart patterns for NF suggest that the counter this week may remain in the range of 4319-4529, break above NF may move further up to 4561/4587, or else break below NF may slide to 4282/4241. For todays trading one may enter long once NF trades and remains above 4457.75, whereby it may move up to 4486/4527. Strong support for NF exists at 4379.25 which if breached decisively NF may slide to 4339/4320.

DLF FUTURE (Last close 335.95)
The company is engaged in real estate development comprising all the segments viz. residential, commercial, and retail properties. The companys stock suffered heavily in the past but of late it stabilized and appears to be consolidating at CMP. The company is slowly coming out of cash crunch with various measures adopted in the past. Further, the company hopes to get substantial contracts with the rail budget opening up major opportunities for private infrastructure developers by promising to modernise 50 railway stations to world standards through the public-private-partnership (PPP) route. Meantime, the stock after moving range bound during the previous week closed marginally higher with high volumes. The stock appears positive on weekly charts and may move up to 347/356 once it trades and remains above 339.25. Strong support for the stock exists at 329.25.

POWER GRID FUTURE (Last close 113.10)
The company owns and operates most of India's inter-state and inter-regional electric power transmission system and carries about 45% of the total power generated in India. The company's net profit rose 16.7% to Rs 1,690.61 crore in the year ended March 2009 over the year ended March 2008. Meantime, the stock after moving range bound during the past few trading sessions closed the previous week marginally higher with positive bias. The stock appears positive on weekly charts and may move up to 119/123 once it trades and remains above 114.25. Strong support for the stock exists at 110.25.

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.

 

[opagarwal]

Trading strategy for 7th July 2009

TRADING STRATEGY FOR 7TH JULY 2009
(Based on technical by O P AGARWAL)


Markets plunge after disappointing Budget

Markets opened on a firm note yesterday waiting for favourable budget announcements but as the budget speech progressed, the announcement that the fiscal deficit may remain at 6.8% of GDP during the current financial year sent shivers among the investors and a sell off in the front line stocks took its toll on the markets. The market went on sliding thereafter when nothing much was found in the budget proposals for the capital markets. The Sensex finally closed 869 points or 5.83% lower at 14,043.40. The Nifty lost 258.6pts or 5.84% to settle at 4,165.7. With the markets plunging sharply yesterday and the Nifty closing below its weekly support, readers are advised to adopt a wait and watch approach till a clear market trend is established.

NIFTY FUTURE (Last close 4154.00)
The counter after remaining firm in early morning trades slowly started moving southward as the Budget speech progressed and around mid noon NF turned negative with sell off in frontline stocks. NF finally lost a whopping 270 points and closed the session breaching its intermediate weekly support. Investors pressed sales in index heavy weight stocks once they found nothing substantial for capital markets in the Budget proposals. The counter may find support around 4109.25 which if breached decisively it may further slide to 4079/4041. The counter will gain strength once it trades and remains above 4183.75, whereby it may move up to 4229/4267.

ESSAR OIL FUTRUE (Last close 143.70)
The Budget yesterday provided a seven-year tax holiday for new private refineries that start operations by March 31, 2012, bringing them on par with state firms. As a result Essar Oil, which runs a refinery in western Gujarat that can process 280,000 barrels of crude per day, will be one of the biggest beneficiaries of relaxation. The firm aims to ramp up the capacity to 680,000 bpd by December 2011. Moreover, the Budget proposal to set up an expert panel for petroleum product pricing will bring in the much awaited level playing field for the private sector thereby benefiting the company. Meanwhile, the stock after remaining range bound during the past week lost substantially yesterday amid general sell off in the market but appears positive on weekly charts and may move up to 151/157 once it trades and remains above 145.75. Strong support for the stock exists at 138.25.

TATA COMMUNICATIONS FUTURE (Last close 464.95)
The stock of the multi product, multi service telecom giant after remaining range bound during the previous weeks closed yesterday lower amid general sell off over dismal budget proposals. The stock however, remains positive on weekly charts and may move up to 473/481 once it trades and remains above 467.75. Strong support for the stock exists at 459.25.

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.

 

[opagarwal]

Trading strategy for 8th July 2009

TRADING STRATEGY FOR 8TH JULY 2009
(Based on technical by O P AGARWAL)


Markets recover after budget shock

Markets opened firm yesterday after severe beating on Monday with dismal budget proposals for the capital markets. Stocks from almost all the sectors showed strength yesterday with pharma and power emerging strong during the final hour. Automobile and FMCG stocks remained steady throughout the session yesterday with strong closing. The Sensex, after opening with a positive gap of around 60 points and touching a high of 14,251and intra day low of 14,000, closed the day at 14,170, gaining 127 points. The Nifty gained 36 and closed at 4202 after making a high of 4231 and a low of 4155 during intra day trades. Market participants appear to be reluctant to build fresh positions at current levels and preferring to exit in view of any trigger in the budget proposals. The market trend may now depend on the FIIs activity and Q1 results of the corporate houses.

NIFTY FUTURE (Last close 4191.15)
The counter after opening higher yesterday remained range bound throughout the session with high volatility and intra day swing of more than 75 points. The counter finally closed gaining a little lower than one percent but remained under selling pressure at higher levels. The counter to gain strength needs to remain and trade above 4217.75 whereby it my move up to 4234/4256. Strong support for the stock exits at 4165.25 which if breached decisively it may further slide to 4146/4127.

CIPLA FUTURE (Last close 256.55)
The company manufactures pharmaceutical products. The products of the company include anti-asthmatics, anti-cancer, anti-inflammatory, anti-depressant and other therapeutic index including animal health care products. The companys net profit surged 40.9% to Rs 252.92 crore in Q4 March 2009 over Q4 March 2008. Meantime the stock of the company after remaining range bound appears to be consolidating at CMP. The stock may move up to 262/267 once it trades and remains above 258.75. Strong support for the stock exists at 253.25.

ICSA FUTURE (Last close 169.80)
The company is engaged in providing software development services and technology solutions for the power, telecommunication and other sectors. The company also provides rural electrification, construction of sub-stations and conversion of LT line to HT lines. The prospects of the company appear bright in view of focus on power and telecommunications by the present Government. Meantime, the stock after remaining sideways during the previous few trading sessions closed yesterday gaining around 4% over its previous close albeit with low volumes. The stock appears positive on weekly charts and may move up to 175/179 once it trades and remains above 171.25. Strong support for the stock exists at 165.25.

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.

 

[opagarwal]

Trading strategy for 9th July 2009

TRADING STRATEGY FOR 9TH JULY 2009
(Based on technical by O P AGARWAL)


Markets reel under selling pressure

Markets opened gap down yesterday on negative global cues and concerns about the state of U S economy. Markets remained under selling pressure throughout the session except a couple of buying seen in the afternoon trades on expectations that the government will spell out a roadmap soon for disinvestments. However, the market participants remained wary of such hopes and pressed sales in front line stocks. FIIs too have been in selling mode this week leading to dampening of market sentiment. The Sensex, which had opened around 130 points lower yesterday dipped to a low of 13701 and finally closed at 13769 losing a whopping 401 points. The Nifty ended at 4078 with a loss of 123 points or 2.93%. In intra-day trades, the Nifty touched a high of 4201 and a low of 4061. Market analysts are of the opinion that valuations do not justify the expected earnings growth for the next couple of quarters at least and with the Budget not announcing market-friendly policies such as disinvestment and deregulation, investors interest may remain at low ebb.

NIFTY FUTURE (Last close 4067.45)
The counter after gap down opening yesterday remained under pressure throughout the session despite a couple of recoveries in intra day trades. The counter closed yesterday near its long term weekly support losing 123 points suggesting weakness. However, the counter to gain strength needs to trade and remain above its immediate resistance at 4098.75, whereby it may move up to 4131/4157. Strong support for NF exists at 4034.25, which if breached decisively NF may further slide to 4019/4001.

FEDERAL BANK (Last close 224.95)
The stock of the mid sized bank after remaining range bound during the past few trading sessions drifted lower this week amid general sell off in the market. The bank posted good results last year whereby its net profit rose 35.98% to Rs 500.49 crore in the year ended March 2009 as against Rs 368.05 crore during the previous year ended March 2008. Meanwhile, the stock of the company appears to be positive on weekly charts and may move up to 231/236 once it trades and remains above 226.75. Strong support for the stock exists at 219.25.

CROMPTON GREAVES FUTURE (Last close 288.90)
The company is engaged in providing power systems, consumer products and industrial systems. The stock of the company after moving range bound during the past one week appears to be consolidating at current levels. The stock appears positive and may move up to 295/302 once it trades and remains above 290.75. Strong support for the stock exists at 285.25.

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.

 

[opagarwal]

Trading strategy for 10th July 2009

TRADING STRATEGY FOR 10TH JULY 2009
(Based on technical by O P AGARWAL)


Markets close flat amid volatile session


Markets opened on a firm note yesterday but could not sustain at higher levels and soon slipped in to red owing to lack of support from the investors. Market participants preferred to stay away and avoided holding position ahead of quarterly reporting season with the IT bellwether Infosys announcing their Q1 results today. Markets ended the session flat yesterday after moving in a choppy fashion. The Sensex, after making a high of 13879 in morning trade ended the session at 13757 well over 100 points off the day's low with marginal loss. The Nifty closed with a small gain of 2 points at 4080.95 after making a high of 4114 and low of 4039 in intra day trades. Meantime, as per data released by the government yesterday, inflation fell 1.55% in the year to 27 June 2009, compared with the previous week's annual decline of 1.3%. Further, the IMF has revised its India forecast upwards because of positive impact from fiscal and monetary stimulus packages. The institution now expects India's economy to grow at 5.4% in calendar 2009, compared with 4.5% projected in April this year. The Indian economy is expected to grow at a much faster rate of 6.5% in 2010. Readers are however, advised to trade with caution with strict stops.


NIFTY FUTURE (Last close 4074.05)
The counter after opening flat yesterday remained range bound throughout the session with moderate volatility but intra day swing of more than 75 points. The counter to gain strength needs to trade and remain above 4113.75 whereby it may move further to 4135/4162. Strong support for the NF exists at 4029.25 which if breached decisively it may slide to 4006/3988.


ONGC FUTURE (Last close 1001.30)
The stock of the biggest State run oil firm after making a high of 1162 on the 2nd instant pared all its gains this week amid general sell off after the Budget presentation despite increase in fuel price. Meantime, the company will invest Rs 20,867.58 crore in 2009-10 fiscal, and its overseas branch ONGC Videsh Ltd, would invest an additional Rs 9,365.06 crore this year to augment facilities. The stock appears to be consolidating at current levels and may move up to 1013/1024 once it trades and remains above 1004.75. Strong support for the stock exists at 996.25.


KOTAK MAHINDRA BANK FUTURE (Last close 566.30)
The enterprise, a private sector bank, provides banking and related services in India including car finance, broking, corporate banking, insurance, investment banking, retail lending and others. Its net profit rose 48.20% to Rs 102.57 crore on 14.3% increase in total income to Rs 918.09 crore in Q4 March 2009 over Q4 March 2008. The stock after losing substantially appears to be consolidating during the past two trading sessions. The stock may move up to 578/587 once it trades and remains above 569.75. Strong support for the stock exists at 563.25.



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.

 

[opagarwal]

Trading strategy for 13th July 2009

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


Market volatility to stay this week

The market saw the Nifty falling steeply by a whopping 420.35 points during the week ended 10th July 2009 with investors believed to have created fresh shorts in some of the front line stocks besides Nifty. Markets on Friday last got off to a firm start with IT bellwether Infosys announcing better than expected Q1 results but the rally remained elusive and failed to sustain at higher levels. The favourable industrial production data released on Friday too failed to cheer the market as investor confidence remained at the lowest after the budget presentation during the week. Market participants seemed worried over increased possibility of rating downgrades by the leading rating agencies, including Standard & Poor's (S&P) which made a cautionary statement on India's sovereign rating. The markets stayed highly volatile throughout the week amid positive and negative developments. Market may hopefully react positive over good Q1 corporate results and FII activity. Readers are advised to trade cautiously with strict stops.

NIFTY FUTURE (Last close 3993.70)
The counter lost a whopping 430 points or around 10% during the week amid high volatility and intra week swing of more than 520 points. Investor interest waned after the budget presentation which carried little for the capital markets. NF breached its weekly support during the mid week trading and slipped to hit a low of 3962 on Friday. The drastic fall appears to be a case of over reaction, meantime, NF may remain in the range of 3907-4087 this week break above NF may move up to 4154/4178 or else break below it may slip further to 3861/3829. For todays trading NF will gain strength once it trades and remains above 4037.75 whereby it may move up to 4058/4078. Strong support for NF exists at 3952.25 which if breached decisively it may further slide to 3924/3909.

CAIRN INDIA FUTURE (Last close 212.25)
Cairn India explores and produces crude oil and natural gas in India. The rally in oil price acts favouably for the companys share price. Meantime, the stock of the company closed in the negative amid general sell off in the market last week. However, the stock appears a buy at CMP and may move up to 219/224 once it trades and remains above 214.25. Strong support for the stock exists at 209.25.

HCL TECH FUTURE (Last close 176.60)
The company is a global technology and software services company offering software services, business process outsourcing services and infrastructure management services. The company has recently concluded multi year contracts with leading companies and sees bright future for the company. Meantime, the stock after moving range bound during the past few trading sessions closed the week in the negative amid general sell off in the market. However, the stock appears a buy at CMP and may move up to 187/196 once it trades and remains above 179.25. Strong support for the stock exists at 174.25.

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.

 

[opagarwal]

Trading strategy for 14th July 2009

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


Markets remain under pressure
Market opened gap down yesterday with the Sensex down by nearly 100 points on weak global cues. Market participants appeared reluctant to create fresh positions even at lower levels. As the session progressed, market drifted further down except some recovery around mid noon. The Sensex, after opening at 13405 plummeted to a low of 13219 in early noon trades, finally ended the session at 13400 losing 103 points. The Nifty closed with a loss of 29 points at 3974. In intra-day trades, the Nifty touched a high of 4003.40 and a low of 3918.75. Reality, consumer and metal stocks were the hardest hit and bore the brunt of the pressure yesterday. Stocks from power, capital goods and auto remained under selling pressure whereas oil, pharma and PSU stocks found some support at lower levels. However, stocks of selected banks and IT stocks were trading firm. The market breadth remained weak through out the session yesterday with as many as 2009 stocks were down in the negative territory, 567 stocks posting gains and 56 stocks ended flat. Readers are advised to trade cautiously with stops.

NIFTY FUTURE (Last close 3965.45)
The counter after gap down opening yesterday remained subdued throughout the session except a bout of recovery around early mid noon whereby NF touched its days high at 3990. NF could not sustain at higher levels and slipped back. NF finally closed the session losing 28 points amid high volatility and intra day swing of more than 80 points. The counter has weakened during the past six trading sessions after the Budget presentation but it may consolidate at CMP before making a positive move. The counter to gain strength needs to trade and remain above 3981.75 whereby it may move up to 4007/4036. Strong support for NF exists at 3932.25 which if breached decisively NF may slip further to 3906/3887.

POWER FINANCE CORPN FUTURE (Last close 193.30)
The company provides funds based services like term loans, equipment leasing, bill discounting, buyer's line of credit. It also provides non-funds based services like guarantee services, consultancy services, to the power sector. The board meeting of the company will be held today for considering the un-audited financial results for the quarter ended 30 June 2009 (Q1). As per market estimates, company may announce better than expected results. Meantime, the stock is moving range bound during the past four trading sessions with average volumes. The stock however, closed yesterday marginally lower but appears positive and may move up to 199/203 once it trades and remains above 194.95. Strong support for the stock exists at 191.25. Readers are advised to remain cautious while trading in view of Q1 results which may impact the share price.

ESSAR OIL FUTURE (Last close 119.75)
The recent budget provided a seven-year tax holiday for new private refineries that start operations by March 31, 2012, bringing them on par with state firms. As a result Essar Oil, which runs a refinery in western Gujarat that can process 280,000 barrels of crude per day, will be one of the biggest beneficiaries of relaxation. The firm aims to ramp up the capacity to 680,000 bpd by December 2011. Moreover, the Budget proposes to set up an expert panel for petroleum product pricing will bring in the much awaited level playing field for the private sector thereby benefiting the company. Meanwhile, the stock has lost more than 30% of its value during the past 12 trading sessions from a high of 170 on 25th June 09 to a low of 115 made yesterday. However, the stock may consolidate at CMP and may move up to 125/129 once it trades and remains above 121.25. Strong support for the stock exists at 118.25.

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.

.

 

[opagarwal]

Trading strategy for 15th July 2009

TRADING STRATEGY FOR 15TH JULY 2009
(Based on technical by O P AGARWAL)


Markets recover smartly on strong global cues


The market opened gap up yesterday on the back of overnight surge in the U S markets following up gradation of financial majors by one of the reputed analyst. Strong Asian markets too aided the market to remain buoyant throughout the session. A release from the Met Dept. yesterday that the monsoon may make up its earlier short fall with increased rains in the coming days also boosted the confidence of investors. Market participants felt relieved after the Finance ministers statement yesterday during the parliament session that India needs higher investment to return to higher growth path and said resorted to huge borrowing because of higher spending. He further said that economy is showing signs of recovery. While the Sensex, which surged to 13,903 in late afternoon trade, closed the session at 13,853 with an impressive gain of 453 points or 3.38%, the Nifty after making a high of 4128 yesterday closed at 4111, up 137 points or 3.46% over its previous close. The market breadth was strong right through the session whereby as many as 1956 stocks were up in positive territory on BSE. 602 stocks declined and 81 stocks ended flat. The market buoyancy may continue for some more time but investors are advised to remain cautious and wait for a clear market trend.


NIFTY FUTURE (Last close 4112.85)
The counter after gap up opening yesterday on strong global cues remained buoyant throughout the session albeit with high volatility. The counter finally closed the session gaining an impressive 119 points The counter to retain its upward momentum needs to trade and remain above 4155.75 whereby it may move further up to 4173/4208. Strong support for NF exists at 4075.25 which if breached decisively it may slide to 4052/4031.


TATA CHEMICALS FUTURE (Last close 196.65)
The company besides manufacturing chemicals and fertilisers also has interests in agriculture, animal nutrition, construction and pharmaceuticals sectors. The board of the company recently recommended dividend at the rate of Rs 9.00 per share of face value of Rs 10 each at the board meeting held on 28 May 2009. The company hopes better growth during the current FY with recovery seen in the economy. Meantime, the stock after losing more than 30% of its value since mid June 09 appears to be consolidating at CMP. The stock closed yesterday gaining 5% with high volumes. The stock may move further up to 203/207 once it trades and remains above 198.25. Strong support for the stock exists at 193.25.


DIVIS LAB FUTURE (Last close 984.30)
The company is engaged in research and development of pharmaceuticals and is the largest manufacturer of some peptide reagents and protected amino acids worldwide. On a consolidated basis, the company's net profit rose 19.86% to Rs 416.64 crore in the year ended March 2009 over the year ended March 2008. At the time of announcing results last month on the 6th June 2009, the board of the company recommended a liberal issue of bonus shares in the ratio of 1:1. Meantime, the stock of the company is on decline since end June 09, hitting a low of 953 on 13th July 09. However, the stock appears to be consolidating at CMP and closed yesterday with positive bias with 2% gain. The stock may move further up to 997/1008 once it trades and remains above 988.75. Strong support for the stock exists at 979.25.



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.

 

[opagarwal]

Trading strategy for 16th July 2009

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


Markets continue buoyancy on strong global cues


The market continuing its momentum, opened gap up yesterday on the back of strong global cues and remained firm throughout the session. Market participants felt relieved on expectations of rapid economic recovery, a definite roadmap on disinvestment and resumption of monsoon rains. Realty stocks recovered sharply and were in demand right through the session. Stocks from almost all the sectors namely metal, power, capital goods, PSU, auto, banking and oil stocks rallied with substantial gains. The Sensex, which surged past the 14K mark with ease and then headed beyond 14,299 in late afternoon trade, closed the session yesterday at 14,253 with an impressive gain of 400 points or 2.88%. The Nifty after making a high of 4249 during intra day trades closed at 4233 with a gain of 122 points or 2.97%. Market may remain firm since global cues remain strong and short covering by the bears may push the markets higher. Readers are advised to remain cautious and trade with strict stops.


NIFTY FUTURE (Last close 4236.90)
The counter as expected moved further up and gained yet for the second day an impressive 124 points over its previous close amid volatile session. The counter to maintain its upward momentum needs to trade and remain above 4259.75 whereby it may move further up to 4302/4333. Strong support for NF exists at 4192.25 which if breached decisively NF may slide to 4163/4142.


TATA COMMUNICATIONS FUTURE (Last close 468.00)
The stock of the multi product, multi service telecom giant after remaining range bound during the past few trading sessions closed yesterday above its short term trend line with positive bias. The stock may move further up to 476/481 once it trades and remains above 470.50. Strong support for the stock exists at 465.50.


UNITED SPIRITS FUTURE (Last close 875.55)
The company is India's biggest alcoholic drinks company with at least 59% market share and it is the world's third biggest by sales volume after Diageo and Pernod Ricard. The shares of the company are in the lime light since last month on reports that private equity investors are eyeing to buy stake in the company worth $250-300. The report suggested that the deal is likely to happen at a slight premium to the prevailing market price some time soon. Meanwhile, the stock after moving range bound with high volatility during the past one week closed yesterday above its mid term trend line with positive bias. The stock may move up to 887/898 once it trades and remains above 879.75. Strong support for the stock exits at 869.25.




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.

 

[sub2501]

Charting strategy

today i've found a site http://www.investarindia.com/, well i've installed it earlier for 15 days trial but couldn't bring into use cause i'm zero in TA. After joining traderji i'm keen to learn the TA but as i've installed it earlier it does not run im my system, pls do advise whether it wud help me in technical,
Thanks subha.