BraViSa TempleTree-India Market Calls

[d_s_ramesh]

A 7% gain on Nifty while new lows are on the rise.

Nifty is at 7% gain for the week, but our New High/New Low index is showing more bearishness. Friday's market activity had 29 new price lows and one New price high showing that bearish sentiment is still very strong. Few industry groups are adding strength in the financial sector. Fertilizers are doing well along with Auto LCV/HCV's.

Market averages have closed with an uptick on the MACD histogram as we had anticipated to be for this week. But, on the daily charts the room left for Nifty to move up. 5200 on Nifty is a strong resistance and it is not far away front the Friday's close. With robust gains on Friday, stop losses for long trades on Nifty are likely to be far below which would not give room for some realistic reward to risk ratios. Similarly many stocks that have bullish divergences on their weekly charts have move up for better and are close to their resistance levels.

Though there are chances for the market to move up from here, it would be advisable to wait for a good opportunity to trade in, which has more strength built into it with a high reward for the risk we would like to expose ourselves going into the trade.

 

[d_s_ramesh]

Increasing lower lows

On Friday's market activty there is 92 new lows and nil new highs, where is the strength in the market. What ever is happening now is a false move to trap innocent traders, novice traders please be careful.

 

[d_s_ramesh]

World Indices
Dow Jones, this index is into a broad side ways range 11300-12025; this market will continues to be so for some more weeks. S&P 500 also mirrors the similar pattern of the Dow Jones Index. HANGSENG, index is strongly bearish which is in its second short trade now, chart patterns show that it may continue in the bearish trend but not with any good significant moves. NIKKEI, the Index which is into a good bear trend has retraced bullish divergence, but the price moves at present do not favor any long positions. The weekly range has to settle down to a narrow level from where there is a possibility of a favorable reward to risk if traded long.


Commodities
Crude Oil, The bullish move which took off with a good divergence managed to reach the channel high but lost its trendiness. This week Crude has closed weak into the value zone. Going forward there us likely to be sideways moves in Crude with a probable range of 103-84$ zone.
COPPER, is in an established bearish trend which has so far given 2 beautiful short trades. The trend is likely to continue for few more weeks and it should breach the previous lows on close to get any bullish strength.
GOLD, this market which maintained it very strong bullish trend from Nov-2009 has given back, broken its weekly support of 1583, but closed marginally above. With this strong reversal move Gold moves out of trend now. Though the MACD Histogram shows a minor bullish divergence, it is likely to take on to new lows along the price moving down. This is not the time to buy; it is a time to watch this market from the side lines till it develops a trending pattern and provides a right opportunity to trade in the direction of the trend.
Silver, has establish into a clear bear trend this week, histogram shows flat moves, but MACD shows strength indicating that this market is likely to reach for further downward moves. We need to wait for a pull back to value zone to short. At this weeks levels shorting zone is 33.08-34.24 with a stop at 34.24, target will be 27.97


Nifty trend of the week
Bearish trend on NIFTY on the weekly charts continues further with price closing at the lowest end since 2009. Weekly volume is 38% above the average volume. As the bearish trend continues, the MACD is retracing bullish divergence on a minor scale. MACD lines have registered a lower low compared to the low registered a few weeks back when the index recorded its lowest low of 4710.05. This shows that there is more room for bearish moves A short trade which was in position from 5058 since the first week of December with a target of 4706 is yet to get completed. This target is likely in the next session. As the bearishness continues, the next support is at 4500 levels.



Exchange sectoral indices
NSE REALITY
NSE REALITY, which has recorded a lowest low of 201.20 but its MACD lines showing a very clear bullish divergence. The MACD Histogram has gone below zero again breaking the back of the bull, but this time it is shallower than when it did so previously at 213.05 in the mid of August this year.
Bank Nifty
As Bank Nifty closes at the lowest so is its MACD, which shows more bearish strength. While the index can reach for further lows, any rally towards the sweet zone which at present is at 9196-9641 is an opportunity to short.

New high's and New lows
Friday's trade has registered at 1:254, which indicates more bearish strength in the market. With most of the stocks well below their highs, there is a fairly less chance of the New High/New Low indicator tilting towards the bullish side.

Stronger stocks for long trades
AMTEK INDIA, we can trade long between 66.90 and 73.20, keeping stop at 66.90, the stock is very strong both in price as well as its fundamentals. We need to wait for its retracement to sweet zone. Target for this trade will be 102.10
HINUNILVR, is another stock which is bullish and can be traded long 349.50 and 368.75, with a stop at 249.50, target for this stock is 417.70. This stock is one of the favorites in the FMCG sector on the sectoral indices group on both the BSE FMCG and CNX FMCG Indices.
KALE CONSULTANTS, entry for this stock is between 91.30 -96.20 with a stop at 91.30. for a target of 127.20.

Apart from long term positions which deserve holding with good strength on thier charts all positions on the long side in riskly at the moment, the number of stocks that show bullish trend on their weekly charts are declining with every coming week. Our advice to the investors is to stay in cash.

 

[d_s_ramesh]

Markets have closed up with strong gains, but is yet far away from any bullish signs. New High/New Low index shows 155 stocks recording New lows toady, while there is no new highs. In a day when broad market averages have given above 2% gains, we have 9 out of 24 stocks in the public sector banks index recording new lows. 6 new lows out of 10 stocks in the power transmission index and 5 new lows in the 10 stock Hotel Industry Index.

All these indicate towards further continuation of the bear phase, maybe with a lull getting into the holiday mood along with the global peers. As this writing goes on we see the US markets turning down sharply. What is the strength of the day long bullishness that the market took off into after getting a nice base? A straight move up from here would have given some nice shorting opportunities on the daily charts, whereas if the market moves into a broad range there are chances that next signals may fail.

Short term traders have to be more choosy in their short calls, trade only on those patterns that show clear strength.

 

[d_s_ramesh]

Nifty

Nifty is non-trending on the Monthly charts while gaining more strength on the bearish side. Weekly charts have retraced good bullish divergence on the MACD, while yet to be confirmed with an uptick. Daily charts are trending with a clear double bottom on the indicator; this bullishness will lead the index towards its value zone on the weekly.

Bearishness continued on the Nifty to reach its near term support of 4500. Nifty managed to pull up from the support zone and has closed up nearly 5% from the lows. There is a drop in volume as the index manages to reach its value zone which for the current week is at 4938-5082 on the weekly charts. As the index is in trend, shorts are possible when it reaches value zone. Short Nifty at 4938.50 on first entry; add up to shorts at 5010.00 with a stop of 5082.25 for both the positions and a target of 4524.75. The target for the next trade beautifully rests again at the support zone of 4500.00. The reward to risk on this trade works out to 5.66 times, a potentially good trade to be in.

Other market averages
NSEMIDCAP index is registering lower lows with added strength in its bearishness. Further lows are possible in this index. Clearly mid cap stocks have lost favor among investors.

BSE500 index which is a broader gauge of the market pulse is again adding more bearish strength, with the histogram showing bullish divergence there are chances for a minor recovery which should be used to exit long positions and add to shorts if possible. All major supports have been broken on this index; the next near term support is at 5400 levels which the market may test in a few weeks from now.

Exchange sectoral indices
CNX IT index continues to be non-trending and is reaching for narrow range moves, there is a possibility of a break out which is most likely to be on the short side. Some of the constituent stocks like TCS, WIPRO etc, have shown some strength in their price performance, but none of them are trending.

BANKEX is having more weakness holding support at 7750. Though the histogram shows bullish divergence, the MACD lines are getting stronger towards bearishness. There is a chance for a high probability short trade on the index. Short at 9016 and add up at 9265 with a stop at 9515 for a target of 7913. This trade has a 4.66 times reward to risk ratio.

Capital Goods and Consumer Durables are showing more weakness on the weekly charts. With all likeliness these indices will reach for new lows soon. FMCG index is in a bullish trend but has already retraced bearish divergence on both the histogram and the MACD. The broad range movement in the index is probably due to Hindustan Unilevers strength and weight on the index. Index level support is likely to move up from 3878 to 3921 in the next week, a breakdown of this support will turn the index to bearishness. Health Care sector is non-trending and will see many whipsaw trades going ahead. Metals index though has retraced bullish strength on the indicators is likely to continue on the bear side as the trend is very much established with chances of any turnaround very bleak. Oil & Gas Index has retraced good bullish divergence on both the histogram and MACD, but yet to confirm strength with an uptick. On the signal getting confirmed there are chances for the stocks in this group to rally which may end up in the index going out of trend as the broad markets do not favor any bullish rally. Power Index is yet another weakest index, all rallies in the power sector can be used for shorting opportunities. PSU Index is reaching for new lows and will continue to so for the weeks to come, public sector undertakings have totally lost investor confidence in them. Reality Index has retraced bullish divergence, there are possibilities of a rally here, but reaching close to the value zone chances of resuming bearishness is ruled out. There are fairly good chances that the index may turn out to be non-trending as most of the constituent stocks do not show much strength in them and almost all of them are non-trending.

New High/ New Lows.
Markets saw frenzied bear activity this week, with 2 of the 5 trading days of the week registering 327 and 394 stocks from our BTT tracking index reaching for new lows. Apart from Hindustan Unilever, there were totally no new highs for the week. Coming towards the close of the week, new lows have subsided to 1/51. This is a good sign for a minor recovery in prices. Banking Public Sector Industry has been the worst hit with more number of new lows among its constituents.

Industry groups.
The top ranking Industry Groups this week are Major Cement, Personal care, Readymade textiles and Auto 2&3 wheeler Industry groups. With a bearish market in progress one cannot expect to have robust strength in any groups, all the top ranking groups are in the last leg of their bullish journey. Cement Industry which has been showing some sort of strength is not so aggressive and markets have witnessed several whipsaw trades in the stocks belonging to this Industry baring few stocks like Ultratech Cement which is one of the top rating stocks today and is a ready to take off candidate in our rankings.

Personal care has the one and only stock that is high up today with a new high, Hindustan Unilever, this stock has a good potential for a long trade and can be added to your watch list.

It would be worth investing some time to check the industries that are leading the fall in the markets, though we are almost in the midst of an established bear market, pull back to value trades are best suitable in established trends. To find trades in the lowest ranking Industry groups would be a nice option now. The ranking orders at the bottom of the tables are Heavy Engineering, Auto LCV/HCV, Civil Construction, Computer Accessories & Airlines. BHEL and Suzlon have a very strong bearish pattern to get short trades. Airlines Industry group is close to the end of its bear run

Trade calls for this week.
The signals given here are on the basis of pull back to value in price. Trades can happen only if price reach prescribed levels, add on entries are provided after first entry while stop remains same. Reward to risk has been calculated inclusive of brokerages. Please use minimal risk and sufficient capital to trade positions. Short trades are based on futures contracts, hence please calculate risks as per lot sizes.
Long
Symbol Entry 1 Entry 2 Stop Target R/R
KALECONSUL 96.65 94.25 91.90 124.20 7.60
PATNI 396.95 386.25 375.50 502.50 6.72
AMTEKIND 78.60 73.70 68.80 105.25 4.86
HINUNILVR 374.85 364.50 354.10 424.40 3.45

Short
TITAN 194.35 198.10 201.85 162.60 8.28
RANBAXY 451.25 462.25 473.15 379.20 6.66
SIEMENS 751.15 772.95 794.80 624.90 5.97
NIFTYFUT 4938.40 5010.35 5082.25 4524.70 5.66
ICICIBANK 792.55 825.60 858.60 647.35 4.72
BANKNIFTY 9016.00 9265.55 9515.00 7912.80 4.66
PNB 902.40 929.00 955.55 785.75 4.65
AXISBANK 1006.95 1044.25 1081.55 852.65 4.45
SUZLON 28.15 31.30 34.40 16.65 4.10
LT 1283.05 1346.40 1409.75 1049.10 4.06
ADANIENT 397.80 433.00 468.20 272.85 3.98
BHEL 288.90 304.60 320.25 232.90 3.97
STERLITE 109.75 116.65 123.55 87.05 3.71
SESAGOA 191.00 202.95 214.90 151.90 3.68
HDIL 78.70 89.40 100.10 49.80 3.17

Signals if not triggered in the coming weeks market activity, will be revised in the coming week.
Happy trading and wishes from BraViSa TempleTree for a wonderful and prosperous new year.

 

[d_s_ramesh]

BTT Weekly Forcast
Indian Market Averages
Nifty
The monthly chart of Nifty is non-trending and is gaining bearish strength, so there is no chance of market turning bullish in the near term. Weekly chart is still bearish but has managed to stay within previous low levels. With the indicators showing strength on the bullish side, there are chances that the tide may change towards a small bullish rally, but the index has not yet confirmed to change direction. While it is expected to happen soon. If the rally is going to be persistent with the New Year euphoria there are chances to reach 5100 resistance levels. But, investors please do not get taken aback that the market has resumed its bullishness, it is a relief rally which will give more opportunities for short traders. One more valuable short trade can happen in the index in the coming weeks. Daily charts are trending and has formed a double bottom on the indicator, the next low on the index will give the necessary bullish divergence and that will give strength to get the most needed rally on the index.

NIFTY MID Cap, This index seems to have to bottom; it is just reaching for new lows both on the index as well as the price levels. The next support levels are at 5850 which is close by and may have a turnaround from there.

NSEIT, this index is continuing its sideways range and going narrower every date, Volume is also getting lower as the range of the day is getting narrow. There is a likely break out soon, and which side it will be is to be seen, with the broad market getting more and weaker, the break has the probability of breaking down.

NSE500, This index is again reaching for new highs with the indicator too recording lows. Histogram is retracing bullish divergence and we believe the divergence will fail.

Exchange Sectoral Indices
BSE REALITY was likely to bottom out last week, but now it seems that it is also adding more bearish strength. The way the trend is opening out, it seems that the index will see some more very strong bearish moves.
PSU Index is just a falling knife, almost all the supports a have been broken and the nest one is at 6197, with the power that the index is being beaten down, the ext support is not likely to hold.

NSE REALITY is showing god bullish strength, but the patterns in price do not indicate any immediate turn of events, it may have a brief rally but break down at the value zone, in case of multiple divergences the signal strength with will and will move into non- trending zone.

BSE POWER is again another index which is very strong on the bearish side. Short toper stocks when the index reaches 2144-1988

BSE OILGAS, though the Index is reaching for new lows, indicators are getting stronger, but there is no indication of an uptick to turn bullish, this index may need a strong watch for trades in it. IN case the Index turns bullish with a low range bar at the bottom of the price move. There is a chance for reaching 8157 on the index.

BSE METAL index is going flat but the price moves are suggesting that there mere room for bearishness. On the event of a recovery to value zone short the weakest stock in this category. As the site is at present getting live, we are unable to list out the weak or best stocks in each index category. Very soon our news letter will have stocks that are favorable candidates for short and long in line with Index performance.

BSE HEALTHCARE is not trending and the formation seems like it will not go into any kind of trend for some more weeks to come. Among the new lows Pharma industry is the only industry group that records higher number of new lows every day.

BSE FMCG, is holding on to the sideways pattern with the 3951 support, this index has already retraced strong bearish divergence, on the break of support the index will turn bearish. Hindustan Lever is the only stock that is worth watching for entries on the long side.

BSE into is into a very broad side ways range with 7940-8974 range. This industry will keep oscillating between these ranges unless there is a narrow pattern and a break on with side, as of now the break will be only on ht e bearish side.

Bank Nifty, This index is one of the worst performing index in our country today, it has bleariest all supports and is continuing to do so regularly. The next support on the Index is at 7100.00. This index has lost more than 40% of its value in a year’s time; this is one of the best sectors for any economy. Why this has happened? It is not the Government or any bureaucracy to blame, it is we who have to blame. We have used the facilities of this sector to the maximum disadvantageous ways. It was exploited to such an extent now they are unable to collect the amount lent to their borrower. And most of the borrowers are bankrupt now. And to top that we have our beautifully elected people to rule us, who know only to loot and nothing else. When administration is like this, Industry will naturally sink. Every day the number of stocks hitting new los is top in the public sector industry group. Though they may not go bankrupt, because our so called netas will bring in some money from unscrupulous taxation policy and fill the gap. How long will this drama go on, one the day is not far away for India to become on Greece, Poland, Italy or etc.,

The rightful citizens we have awake ourselves, enough that we have slept putting the blame or our politicians for the crap. The so called politicians are elected by us, does that mean we are all corrupt. No, it is not that, we are lazy to the core; we do not want to wait a little while, to get out the corruption. You may not be able to eradicate corruption over night, but with sincere effort from every citizen in small ways wherever possible, we can bring down corruption. Let us give us children a wonderful world with a lot of love and affection..

BanK Nifty
Bank Nifty managed to stay within previous weeks range but is increasing bearishness on the indicator. Support still remains at the 7325 levels, on the reach of value zone we will have a wonderful short trade in this Index, please do not miss this golden opportunity of easy money. Monthly chart is off course non-trending but weekly is in a fantastic bearish trend. Daily charts are also trending but the pattern clearly indicates show that it may turn into a sideways pattern soon on the daily charts.

Industry Groups
Cement Major, Personal care, Auto 2 & 3 Wheelers, mini Cements and Contraceptives are the leading industries today. Now we shall go to the order from the bottom as the market is bearish, Heavy Engineering, Civil Construction, Computer accessories, sugar etc.,

In the Cement Major Industry group, ULTRATECH is still leading the pack, but is not so very strong. Whereas in the Personal care Industry, HU+INUNILVR is ruling very strong and has a potential for a good trade in it on the daily charts. In the Auto 2&3 Wheeler Industry BAJAJ-AUTO is the only stock that is holding god, and even that has broken the back of the bone on it histogram. Cement – Mini is one of the industries which is leading today but the only constituent in the industry SAGARCEMENT is not having a good chart pattern.

New High/ New Lows
New high new lows for Friday’s close does not show any better picture apart from a slight improvement. The count is 2/97, off course new lows registered is getting reduced. This also indicates that the market is trading in themed range. The Industry that registered higher number of new lows this week are 10/34 in the Civil Contracting Industry, 9/24 stocks in the Public Sector banking Industry. Public Sector Banks Industry is one of the worth performers on all fronts, it seems like the whole Indian community has lost total trust on the public banks. This data is worth thinking about

Expected trading opportunities for this week.
The week gone by saw lesser activity and hence none of our entries were filled. So all the levels have changed for this week. Since are trading the pull backs on the highly strong patterns, we have to wait with patience for the charts to give us the right opportunity to either go long or short. Please keep the stocks on your watch list and when the trigger comes through place your entries. Once again our very sincere warning even for seasoned traders, please do not operate without stop losses. Protect your capital first. There are umpteen numbers of opportunities the markets offer us often, if we are in a hurry we will only end up losers.

Again we are giving entries in 2 stages, first entry is as the stock approaches the value zone and then we add on to overage our position but keep the stop same of the first entry. By no means stop will move against the position, it will always be either stagnant or move in the direction of the trade. All short trades are based on futures positions and hence brokerages are calculated as per futures operations.

Once more request, as much as possible please keep risk per trade within 1% of your capital, have adequate to trade positions. We have listed positions based on their reward to risk ratios, always try to get the trades with the highest reward to risk, this will ensure your account to be positive even in the event of having few losing trades. All the calls given here are based on few advanced calculations and probabilities; there is no guarantee that all the trades will be winners.

In case users have doubts about how to trade the positions and manage risk, please feel free to write to us. Almost care has been taken to ensure that the nest of trading opportunities offered in our calls. Bravisatemple tree has launched a newly advanced site with runs huge proprietary calculations to rank Earnings growth, Price Relative strength Growth, Industry group ranking, Mutual Fund ownership, Sales and net profit growths to facilitate users in finding the best stock of their choice to invest it. Many of the concepts used on the site are highly useful in stock selection, but are very much new to the average user. All kinds of doubts regarding the usage of the site can be clarified through mail at the above given ID.

This weeks trades
Long
Symbol Entry 1 Entry 2 Stop Target R/R
KALECONS 92.46 97.06 94.76 122.55 7.16
PATNI 380.77 404.02 392.40 506.71 6.20
MICROTECH 137.13 143.17 140.15 166.44 4.84
RAJTV 63.39 68.27 65.83 80 3.78
HINDUNILVR 358.06 379.52 368.79 432.05 3.56
SHREECEM 1923.59 1993.98 1958.79 2181.90 3.18
AMTEKIND 70.76 86.95 78.86 106.95 2.59
Shorts
TITAN 199.69 191.22 195.46 158.72 7.64
RANBAXY 467.92 444.26 456.09 377.98 5.77
SIEMENS 783.25 735.10 759.18 618.80 5.09
PNB 942.58 888.93 915.76 771.79 4.63
BHEL 314.09 285.57 299.83 225.18 4.59
AXISBANK 1062.00 979.89 1020.95 808.35 4.51
BANKNIFTY 9405.84 8876.73 9141.29 7791.00 4.38
ICICIBANK 845.84 777.41 811.63 654.40 3.95
LT 1379.89 1242.66 1311.28 1008.40 3.81
SUZLON 33.18 26.64 29.91 16.25 3.63
ADANIENT 456.12 385.77 420.95 276.60 3.54
SESAGOA 210.78 186.55 198.67 150.71 3.38
STERLITE 121.06 106.97 114.02 86.35 3.35
HDIL 96.65 75.15 85.90 49.40 2.86
NIFTYFUT 5050.13 4817.00 4933.57 4531.19 2.78

BraViSaTemple Tree wishes all the traders and wonderful and prosperous New year 2012 with a lot of pleasant surprises.

 

[timepass]

Thanks BraVista, for your analysis and calls. Decorum says that one should avoid writing contact details in the forum. Rather, call upon the members to post their queries here in the forum itself.

 

[d_s_ramesh]

Oh! I am very sorry about it, the message that I posted was the same that we had posted on our newsletter which contained the contact details. I seriously did not take a note of it. I am a very much integrated person to follow such rules, but now it has happened due to oversight mistake. I will edit it immeditely.

Thank you very much for reminding me.

 

[d_s_ramesh]

MC leod Russel in the Big Money channel today.
Our BMC listing has given McLeodRussel as the best stock for trade today. Lets analyse this stock for its potential to trade. To qualify for our BMC listing a stock should have its EPS and PRS ranking above 80 and have a big volume of above 50% than its average volume.

This stock qualifies in both the EPS and PRS rankings but fails in the volume growth. As the market is bearish now, there are chances of having stocks very poorly on the volume front. Lower volume at the lower price levels is also an indicator that the stock is attracting lower volumes at lower levels and is poised for a good growth going ahead. But, this is not a single lone confirmation that a stock is a strong stock to trade in.

The average volume recorded on this stock is 4,21,606, today's volume is 3,01,185 a good one compared to the peers, but for any stock to have high strength it should have 50% above average volume.

On the Technical charts, the stock is very weak, its weekly charts is reaching for lower lows. Histogram is flat. Pivot is far away and the prevailing trend is bearish. This stock has a long way to go before it can give any good buy signal.

Mutual Fund representation is also balanced at present. most of the funds are selling while some are buying equilizing the total.

New lows and New highs are improving a little with 0/17 on the lower side. this is an indication that the market is getting off its lows for the time being, There are chances that again we may hit another streak of new lows and then the market gains strength to start rallying.

Stocks that are ready to take off are concentrated mostly on the cement industry, but no stocks in that pack show real strength in them, all have exhausted their moves.The only promising stock which has some potential is UNTRATECH.

 

[d_s_ramesh]

BTT Weekly Forecast
NIFTY
Weekly chart of NIFTY is trending bearish & is holding 4500 support with an equal range pull back this week. Yet far away from the value zone. Now the bullish divergence is confirmed on the charts, thought not a strong one, it will take the index to some heights. We can short nifty at the value zone, but the probability of this trade is not so very attractive. Since the market is broadly bearish, shorts should work well, so taking a short trade with highly calculated risk will fetch some decent returns. 4500 support is likely to hold for some more weeks to come.

Market Averages
NSE500

NSE500 weekly chart bearishness continues and is trending bearish, but it has started showing tiredness. An uptick has come this week, which will lead to the market reaching value zone and from there to give a wonderful short opportunity in the weakest stock in the component list. Now, our task is to find the weakest stock here. How to do it? NSE 500 is a broad index comprising various industries, it would be a nice idea to find the weakest Industry in the group and find the leader who is pulling the market down. We will be identifying the industry and the necessary stock in the following sections.

Exchange sectoral indices
NSEIT

This chart is also giving a different pattern, while we were anticipating a down side break, here we find this week the strength is towards the upside. 6520 a support has been broken and volumes also show increase. IT index is likely for some bullish moves, we shall now find about which those stocks that are showing some promise here.

PSU Index: this index is one the weakest today. And is rapidly rallying up to value. There are a lot of stocks in this index and most of them are weak, bring most of them to the watch list and track for short trades.

Oil & Gas: The index has given bullish divergence and has confirmed it with an uptick on the histogram. Now it would be time to look for some trades on this index.

Reliance: This stock has developed a good bullish divergence on the weekly charts and has also confirmed it with a narrow bar. Now it is time to find a good trading opportunity in this stock.

New high New lows: For the past few weeks new lows are getting reduced, but for new highs to be registered it has a long way to go. No w the market is in themed level and will give a lot of opportunities for short trades. Please concentrate on stocks that are listed in the futures segment for some good short trades. Very soon our site will be having a graphical representation of the new high and new low indices, this will give an indication of the market bottoming out.

Volume toppers:
This segment on the site is one of the unique features. The stocks that register abnormal volume against their average volume show some inherent strength in them. In the last week we had few such incidences in MMTC, Dredging Corporation and STC. This Friday we have AIA ENGG which has registered 3210% volume increase. The weekly chart of this stock has good bullish divergence. On the daily chart there is a resistance at 293.00. Normally those stocks that come on the volume toppers ;list continue with the momentum for few days and our observation has given an above 20% return on investment in a very short span of few days. You can take a small exposure to confirm the moves and once you are satisfied with the pattern can commit more capital.

Regular observation of this segment will give us a number of useful trades, on an average if we are able to get about 20 trades a year in this segment and we exit the position with a minimum of 20% gains, though there are more potential in some stocks. The results on the year-to-year basis will be a neat 40% returns on investment.

Here we are using a process that all the trades that we take in this section be exposed with 10% of your capital sp that you can trade 10 positions individually. Most of the times 10 trades do not come on a a stretch, so there is more capital left for other trades.

Big Money Channel.

This week we have got 2 stocks in the big money channel. This segment is designed in such a way that if a stock has EPS and PRS ratings of above 80 and the volume is above 50% of the average volume the stock is poised for a good run. Today we have ARVIND and McLeod Russel in this segment. Lets go into detailed analyses of these stocks.

ARVIND is one of the stocks that qualify in out BTT ranking table with many positives. The EPS rating is 98.96, which means that there are 98.96% companies that are below this companys performance, which surely tells that it is a leader. The same way its PRS ranking is 92.28, the stocks price is 33.42% lower than its 52 week high, but still it is ranking above 90, even this states that there are many companies that are faring very badly on the price front. The sales and net profit growth of this company is 98.69, the earnings of the company are far superior to the companies that are down in its order. This stock belongs to the Apparel Denim Industry which has a A- rating, this means that the industry is above 95% of the industries and one of the top performing industries. ROE of the Stock is 7.50, this is a deterrent for the stock, and any stock that has an ROE of less than 17 is not so much favored by investors. Fund participation in the stock is not so encouraging, 16 funds hold about 20.40 lakh shares, which is almost down from 44.07 lakh shares a month ago. This is surely a point of concern in this stock.

There are a few negatives in this stock, but the stock has a good record on both fundamentals as well as technicals in the past quarter, what would be the situation in the next quarter is not know. Considering its good credentials one can take a small exposure in the company at 75 levels.

All these levels are given based on the daily charts only, as for the weekly charts are concerned, this stock is very much bearish and is trying to turn up, so this turning up rally can give investors a small rally to make some money. Please maintain stop losses, risk as low as possible.
Another stock that has come in the BMC list is

McLEODRUSSEL:
This stock is one of ht pioneers in the plantation industry. They literally own almost all the best plantations in India and also have presence in other countries. This stock too has an EPS and PRS ranking of above 80, which qualifies for the stock to be tracked for a trade. Mow lets identify if the other criterias give us the same opportunity. Industry group rank of this stock is B which indicates that it is between 80-9% on the industry ranking. Sales and net profit grow this is not so very encouraging at 51.97. The stock is down about 34% from its high, with many big stocks losing more in value, this percentage drop is an advantage. ROE is at 15.27, better compared to ARVIND. But here the mutual fund sponsorship is highly encouraging. The present month holding is 3.06 lakh shares compared to 1.61 lakh share a month ago. So, it is a indication that this stock has become a funds favorite. The stock has a pivot at 253; it would be prudent to wait for the pivot to be breached for a good trade.

As the markets are not in a favorable mood not many attractive stocks come in, but if we keep continuing the homework we will be the first to identify the next chances and we can benefit from the moves.

Now lets see the stock calls for the week.

Long
Symbol Entry 1 Entry 2 Stop Target R/R
KALECONSUL 96.65 94.25 91.90 124.20 7.60
PATNI 396.95 386.25 375.50 502.50 6.72
AMTEKIND 78.60 73.70 68.80 105.25 4.86
HINUNILVR 374.85 364.50 354.10 424.40 3.45

Short
TITAN 194.35 198.10 201.85 162.60 8.28
RANBAXY 451.25 462.25 473.15 379.20 6.66
SIEMENS 751.15 772.95 794.80 624.90 5.97
NIFTYFUT 4938.40 5010.35 5082.25 4524.70 5.66
ICICIBANK 792.55 825.60 858.60 647.35 4.72
BANKNIFTY 9016.00 9265.55 9515.00 7912.80 4.66
PNB 902.40 929.00 955.55 785.75 4.65
AXISBANK 1006.95 1044.25 1081.55 852.65 4.45
SUZLON 28.15 31.30 34.40 16.65 4.10
LT 1283.05 1346.40 1409.75 1049.10 4.06
ADANIENT 397.80 433.00 468.20 272.85 3.98
BHEL 288.90 304.60 320.25 232.90 3.97
STERLITE 109.75 116.65 123.55 87.05 3.71
SESAGOA 191.00 202.95 214.90 151.90 3.68
HDIL 78.70 89.40 100.10 49.80 3.17