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.
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.