TRADING STRATEGY FOR 12TH MARCH 2009
(Based on technical by O P AGARWAL)
Global cues to set the market trend
The market opened gap down on Monday and remained subdued right till the end as market participants appeared none too keen on making fresh positions owing to weak global markets. Markets remained range bound on Monday for the first hour of trade but declined sharply thereafter in afternoon trades on heavy selling in selected blue chip stocks. However, select power and pharma stocks found support at lower levels while capital goods, IT, telecom, metal and oil stocks were seen struggling for support and remained in the negative. While the Sensex, which had plunged to a low of 8110 in intra-day trades, ended with a loss of 165 points or 1.99% at 8160 at a three-year low, the Nifty closed lower by 47 points or 1.79% at 2573.15, a few points off its low of 2555.60. FMCG and realty stocks came under heavy selling pressure on Monday as FIIs continue to offload their holdings in view of depreciating rupee and redemption pressure. Further, markets will be keenly watching IIP numbers for January 09 which will be announced today which as per Moodys are expected to fall again in January by 3.5% due to sharp reduction in external orders and the dramatic slowdown in the domestic economy. Meantime, U S markets staged a sharp rebound on Tuesday on the news that Citigroup is turning a profit during the first two months of 09 which buoyed hopes that stricken financial sector can recover. Back home, however, readers are advised to trade with caution and watch the market trend before taking large positions.
NIFTY FUTURE (Last close 2548.40)
NF closed on Monday losing 60 points over its previous close making a low of 2531, absolutely near its weekly support as indicated in these columns on Monday and rebounded. The counter may yet seek support near its weekly levels but to gain upward strength NF needs to trade and remain above 2577.75, whereby it may move up to 2609/2643. Immediate support for NF exists at 2527.75, which if breached decisively NF may slide to 2491/2478.
LIC HOUSING FINANCE FUTURE (Last close 187.15)
The company is operating in a very large business segment with not many competitors. The company has a very stable business model and is steadily growing in the home finance space. However, because of overall bad sentiment prevailing in the market the stock has lost investors confidence but appears a value buy at current price. Meanwhile, the stock closed flat on Monday with marginal gain with moderate volumes. The stock appears to be consolidating at current levels and may move up to 192/196 once it trades above 188.25. Strong support for the stock exists at 183.25.
HDFC BANK FUTURE (Last close 785.80)
The premiere private sector banking stock has lost substantial value during the past one month amid general sell off in the market on weak global sentiment in the financial sector. The stock appears to be consolidating at current levels and may move up to 804/817 once it trades and remains above 791.75. Strong support for the stock exists at 783.00.
PNB FUTURE (Last close 301.95)
The PSU banking stock has lost more than 250 rupees during the past two months from a high of 545 on 5th January 09 to a low of 286 on 6th March 09 amid weak market sentiment and particularly of banking sector. The stock is moving range bound for the past two trading sessions and may move up to 311/319 once it trades and remains above 305.75. Strong support for the stock exists at 299.50.
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 above. 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.
(Based on technical by O P AGARWAL)
Global cues to set the market trend
The market opened gap down on Monday and remained subdued right till the end as market participants appeared none too keen on making fresh positions owing to weak global markets. Markets remained range bound on Monday for the first hour of trade but declined sharply thereafter in afternoon trades on heavy selling in selected blue chip stocks. However, select power and pharma stocks found support at lower levels while capital goods, IT, telecom, metal and oil stocks were seen struggling for support and remained in the negative. While the Sensex, which had plunged to a low of 8110 in intra-day trades, ended with a loss of 165 points or 1.99% at 8160 at a three-year low, the Nifty closed lower by 47 points or 1.79% at 2573.15, a few points off its low of 2555.60. FMCG and realty stocks came under heavy selling pressure on Monday as FIIs continue to offload their holdings in view of depreciating rupee and redemption pressure. Further, markets will be keenly watching IIP numbers for January 09 which will be announced today which as per Moodys are expected to fall again in January by 3.5% due to sharp reduction in external orders and the dramatic slowdown in the domestic economy. Meantime, U S markets staged a sharp rebound on Tuesday on the news that Citigroup is turning a profit during the first two months of 09 which buoyed hopes that stricken financial sector can recover. Back home, however, readers are advised to trade with caution and watch the market trend before taking large positions.
NIFTY FUTURE (Last close 2548.40)
NF closed on Monday losing 60 points over its previous close making a low of 2531, absolutely near its weekly support as indicated in these columns on Monday and rebounded. The counter may yet seek support near its weekly levels but to gain upward strength NF needs to trade and remain above 2577.75, whereby it may move up to 2609/2643. Immediate support for NF exists at 2527.75, which if breached decisively NF may slide to 2491/2478.
LIC HOUSING FINANCE FUTURE (Last close 187.15)
The company is operating in a very large business segment with not many competitors. The company has a very stable business model and is steadily growing in the home finance space. However, because of overall bad sentiment prevailing in the market the stock has lost investors confidence but appears a value buy at current price. Meanwhile, the stock closed flat on Monday with marginal gain with moderate volumes. The stock appears to be consolidating at current levels and may move up to 192/196 once it trades above 188.25. Strong support for the stock exists at 183.25.
HDFC BANK FUTURE (Last close 785.80)
The premiere private sector banking stock has lost substantial value during the past one month amid general sell off in the market on weak global sentiment in the financial sector. The stock appears to be consolidating at current levels and may move up to 804/817 once it trades and remains above 791.75. Strong support for the stock exists at 783.00.
PNB FUTURE (Last close 301.95)
The PSU banking stock has lost more than 250 rupees during the past two months from a high of 545 on 5th January 09 to a low of 286 on 6th March 09 amid weak market sentiment and particularly of banking sector. The stock is moving range bound for the past two trading sessions and may move up to 311/319 once it trades and remains above 305.75. Strong support for the stock exists at 299.50.
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 above. 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.