BTT new report for 20-01-2012
World Markets:-
Dow Jones:
The Index has reached bullish trend this week. It has overshot the channel and has become over bought. Pull backs to value can be used to trade long. Though volume has not caught up with the price moves, we expect new highs in this market soon.
Nikkei:
The index has made a very strong recovery to the value zone and is in the verge of giving a bullish trend buy. There is a good bullish divergence found on the index which will help it move up further. 9510 and 9318 are the next resistances on this index.
Hang Seng:
Hang Seng Index has given a strong bullish trend reversal but without a good divergence. Indicators are getting stronger, but any reversal from here will render the index trendless.
FTSE:
This index is non-trending but rallying after a brief breach of nearest resistance at 5746. The bullish rally is likely to continue and develop into an established bullish trend.
The overall performance in comparison with all the world indices states that the markets are ready for a good rally in the coming weeks. Traders on the long side should see god benefits accruing from these moves. Mostly all the long positions would have been established by now, it is only exits that they have to concentrate on and book profits.
Commodities:-
Crude:
Crude is bullish and is reaching for the value zone, you can buy crude at 96.85-95 levels for a puu back trade for a target of 106.
Gold Index:
The index being in the non-trending zone has started to move up into the value zone but has a very strong bearish strength on the weekly histogram. Trades on any direction needs to be on wait till a clear trend emerges in this market. 1760 can be a resistance while there are chances for new lows in this market.
Copper:
Copper established a bullish long trend trade and has been doing well, but volatility has increased which is a point of concern in this market. Though the indicators are showing strength the market is at a crucial point with resistances overhead, it can react and pull back.
Silver:
After a good bullish divergence on the histogram and an established bearish trend Silver has managed to reach value zone. Now at the value zone there are chances for the market to turn down to give another short trade opportunity or turn above reversing the bearish trend.
Nifty:-
After a minor bullish divergence on the histogram Nifty has given a trending bullish buy above 5064.15 with a stop of 5496.1. The index is turning up with a trend and it is a good sign for the market. The previous short trades have got stopped out. The Nifty has strong resistances at 5100 & 5200 levels. If the trend reverses from here the weekly charts will go trendless soon. This would mean many whipsaw trades for the constituent stocks. At present many of the Nifty stocks have gone into trend buys and are favoring well. Trade long on Nifty with very risk open risk. Since the monthly charts are trendless, there can be high volatile reversals. As of now the bearish trend is getting over in Nifty.
As the index is moving up from a bullish divergence though not very prominent, at the most 5400 is the highest possibility for the index, traders holding long positions in Nifty should keep a keen watch for any weakness on the daily charts to exit longs.
With most of the indices in the verge of a turnaround, market is poised for some more gains in value and those stocks that have already gained strength will have high profit potential. Trading in now would be late entry as most of the stocks have established their bullish position on the daily charts. Whereas their weekly charts are still dicey, with many close to getting non-trendiness.
As the market is getting bullish on the daily charts and is gaining strength, while the weekly is closing in towards non-trend, the bullish consensus may not hold ground for a long time. So, traders are advised to have a very close watch on their positions, any slight weakness may be used to exit and book profits. Suppose the market continues its bull run, need not worry about lost opportunity and there are always another opportunity waiting to happen. Market is abundant with opportunities to make money, it is only the patience needed to find the right ones that the investors or traders miss and lose capital.
Bank Nifty:-
Banking stocks too took to a good trend change giving a trending bullish buy signal on the weekly charts which has come through after a minor bullish divergence on the weekly histogram. This index is a very high volatile index and hence will have larger risks on trade, so traders with adequate only are advised to take position. Please do not bring greed of fast money into these types of trades and loose capital. Once the market starts to reverse fear will grip those traders whose accounts do not have sufficient capital backing. Though the prevailing trend is showing still bearish presence, the histogram on the weekly has emerged strong showing that the nearest resistances will be cleared smoothly if the trend change happens. In case of a reversal from here, the index will move into a highly broad range, which will give many whipsaw trades.
NSE 500:-
The index has reached the sweet zone with a minor bullish divergence on the histogram, the back of the Bear is broken for the second time now and it is stronger this time. This indicates that there is a shift in trend to happen soon. Many stocks in the index group have established long positions and are doing well on trend signals. Trend signals are not reported in our news letter. Due to time constraints we are reporting only one of our trading systems here. There is a separate module which will bring out all our trading systems with their calls along with money management and exposure details for each stock based on your capital declared with us. This product will be launched soon and is named as the StockSupermarket. We believe these systems will give investors easy access to make money in the markets.
NSEIT:-
The non-trendiness of the index is continued for the coming week too, 3rd quarter results of the it sector is not very promising, hence the indecisiveness continues. The range of this index is very high at 6430-5740, these types of high ranges on indices will give a lot of whipsaw trades for the constituent companies. So IT sector for now is a risky be, unless the individual chart patterns have a really great pattern to trade.
BSE Reality:
This index is very close to reversal on trend buy signal, some of the prominent stocks in this group have already gone into trend buys and doing fairly well. UNITECH has come into weekly trend buy signal. Long entry at 22.95 for a stop at 18.95, this is a trending call and hence has to follow the trend.
BSE PSU:
The index is close to the value zone end on the bearish trend, a continued bullish move will turn the cycle to bullish signal on trend reversal. Daily chart is witnessing minor bearish divergence which indicates that the weaker stocks in this index will turn down if the market gets down.
BSE POWER:
Power index has made a strong recovery to the value zone. Siemens, Crompton RPower and other constituent stocks have shown good bullish rally in the past week and are ready for moves upward.
BSE OilGas:
This sector made some decent gains from the PSU stocks, but other prominent players did not show relevant support. Reliance buy back price was not favored by the market and the trust on the management is slowly waning downwards, which clearly shows in its stock price which has been in non trend for more than a year now.
BSE Midcap:
This Index is one of the index witnessing strong bearish strength and has reached the value zone, we can see some good short positions in the stocks of this index. Many of the stocks forming this group are in the sideways pattern on the weekly charts baring few which are strong and many that are weak.
BSE Metals:
Metals Index has made a good recovery rally and is seen from the strength that TataSteel Coal India etc., apart from few slow movers like SAIL that did not show real strength, the uptrend may continue.
Based on the sectoral performance of the indices we see the market to have a small bullish run before any bearish sentiment can set it. In case if so happens without prior indications the weekly charts will move out of trend, so caution is needed on trades.
Industry Groups:-
The top Industries for this week are
Machinery,
Auto Lcv/Hcv
Auto 2 & 3 Wheelers
Personal care
The lowest order is
Engineering Heavy
Non-Conventional Energy
Civil Construction
Computer Accessories
Services
This Weeks calls:-
This Weeks calls include trending calls for futures stocks on the weekly time frame. Trending calls do not have target and will be monitored on a daily basis for exits. Please use adequate risk management while taking these positions.
CALLS TABLES
Double Screen
Long
Stock Entry 1 Entry 2 Stop Target R/R
Patni 413.45 428 398.9 533.5 5.43
AmtekInd 81.925 87.4 76.45 113.4 4.29
Kale 102.875 106.9 98.85 143.55 6.94
HindUniLvr 374.775 384.35 365.2 429.3 3.27
MICROTECH 148.9 154 143.8 179 3.76
KAMAT 104.5 107.3 101.7 133.35 6.29
RAJTV 71.575 75 68.15 91.7 4.09
SHREECEM 2001.275 2039.55 1963 2205.35 2.71
Short
Stock Entry 1 Entry 2 Stop Target R/R Position
AdaniEnt 396.85 360.8 432.9 259.15 3.27 Progress
AxisBank 1044.25 1006.95 1081.55 852.65 4.45 Progress
BHEL 291 275.75 306.25 227 3.59 Progress
HDIL 89.395 78.71 100.08 49.8 3.17 Progress
LT 1277.925 1212.15 1343.7 986.95 3.81 Progress
Titan 198.105 194.34 201.87 162.6 8.28 Progress
SesaGoa 202.93 191 214.86 151.9 3.68 Progress
Siemens 772.985 751.16 794.81 624.9 5.97 Progress
Ster 116.64 109.76 123.52 87.05 3.71 Progress
Suzlon 27.925 25 30.85 16 3.53 Progress
Weekly trend trades
Symbol Entry Stop
Aban 454.95 326.65
Adani Power 89.55 67.75
ICICIBANK 879.15 673.1
Nifty 5464.8 4602
BANKNIFTY 9539 7926.8
PNB 956.5 764.7
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