Daily Trading strategy
- Thread starter opagarwal
- Start date
Re: Trading strategy for 13th April 2009
Instead of opening thread everyday,you can do one more thing as well.
Open 5 threads with titles like
"Trading strategy for Monday"
"Trading strategy for Tuesday"
"Trading strategy for Wednesday"
"Trading strategy for Thrusday"
"Trading strategy for Friday"
and post relevant messages.So instead opening 200+ threads ,better you
can do with 5 threads.
Instead of opening thread everyday,you can do one more thing as well.
Open 5 threads with titles like
"Trading strategy for Monday"
"Trading strategy for Tuesday"
"Trading strategy for Wednesday"
"Trading strategy for Thrusday"
"Trading strategy for Friday"
and post relevant messages.So instead opening 200+ threads ,better you
can do with 5 threads.
Trading strategy for 15th April 2009
TRADING STRATEGY FOR 15TH APRIL 2009
(Based on technical by O P AGARWAL)
Markets close positive with cautious optimism
Markets opened strong on Monday on the back of positive cues from the Asian markets coupled with smart buying in frontline stocks. However, markets slipped into the red witnessing high volatility but soon recovered and the sentiment remained firm thereafter on buying in auto, metal, and banking stocks. The markets pared earlier gains again in afternoon trades on dismal export figures for the last month. The buying gained momentum in late noon trades, and the Sensex rallied to a high of 11,070 - up 266 points from the previous close. However, profit-taking by the investors, ahead of holiday on Tuesday, in the last half-hour of trades saw the market pare earlier gains and finally the Sensex ended at 10,967, up 163 points. The Sensex has surged by more than 14% during the past seven trading sessions netting around 1400 points. The Nifty closed at 3382 gaining 40 points being its highest closing since 14 October 2008. Market rally during the past few sessions is attributed to the signs of an improvement in the economy and easing of the credit crisis. The rally is also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. However, readers are advised to trade with caution as profit taking at higher levels is not ruled out.
NIFTY FUTURE (Last close 3390.90)
NF closed on Monday gaining 35 points amid high volatility and intra day swing of more than 90 points on the back of strong buying in auto, metal, reality and banking stocks. The counter retraced on profit taking in late hour trades after making a high of 3433, very near to our upper level for the day. The counter will gain further upward momentum once it trades and remains above 3437.75, whereby it may move up to 3458/3487. Strong support for NF exists at 3357.25, which if breached decisively NF may slip to 3324/3284.
L & T FUTURE (Last close 825.35)
The stock of the engineering giant lost investors confidence after it invested heavily in the shares of tainted Satyam in early January 09. The stock thereafter touched a low of 553 on 9th March 09 on heavy dumping by the investors. However, the stock regained swiftly unabated amid upbeat market sentiment prevailing since mid March 09 and touched a high of 859 on Monday last but ended in the negative over its previous close on profit taking and loss of Satyam bid. The stock has surged more than 55% during the past 20 trading sessions. The stock may see more profit booking at higher levels and may dip further to 802/774 once it trades and remains below 816.25. Strong resistance for the stock exists at 834.75 which if crossed with volumes, one should not carry short position.
STERLING BIO FUTURE (Last close 137.50)
The Company's principal activity is to manufacture and sell healthcare products of gelatine and co-enzyme Q10. Its customers comprises of food, pharmaceuticals and photographic industries, with users in technical applications. The Company operates in United States, Japan and Europe. For the full year ended December 2008, net profit rose 19.31% to Rs 219.18 crore in the year ended December 2008 as against Rs 183.71 crore during the previous year ended December 2007. The stock of the company after moving range bound for the past one week closed on Monday marginally higher albeit with low volumes. The stock appears positive on charts and may move up to 143/147 once it trades with volumes above 138.50. Strong support for the stock exists at 135.75.
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 15TH APRIL 2009
(Based on technical by O P AGARWAL)
Markets close positive with cautious optimism
Markets opened strong on Monday on the back of positive cues from the Asian markets coupled with smart buying in frontline stocks. However, markets slipped into the red witnessing high volatility but soon recovered and the sentiment remained firm thereafter on buying in auto, metal, and banking stocks. The markets pared earlier gains again in afternoon trades on dismal export figures for the last month. The buying gained momentum in late noon trades, and the Sensex rallied to a high of 11,070 - up 266 points from the previous close. However, profit-taking by the investors, ahead of holiday on Tuesday, in the last half-hour of trades saw the market pare earlier gains and finally the Sensex ended at 10,967, up 163 points. The Sensex has surged by more than 14% during the past seven trading sessions netting around 1400 points. The Nifty closed at 3382 gaining 40 points being its highest closing since 14 October 2008. Market rally during the past few sessions is attributed to the signs of an improvement in the economy and easing of the credit crisis. The rally is also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. However, readers are advised to trade with caution as profit taking at higher levels is not ruled out.
NIFTY FUTURE (Last close 3390.90)
NF closed on Monday gaining 35 points amid high volatility and intra day swing of more than 90 points on the back of strong buying in auto, metal, reality and banking stocks. The counter retraced on profit taking in late hour trades after making a high of 3433, very near to our upper level for the day. The counter will gain further upward momentum once it trades and remains above 3437.75, whereby it may move up to 3458/3487. Strong support for NF exists at 3357.25, which if breached decisively NF may slip to 3324/3284.
L & T FUTURE (Last close 825.35)
The stock of the engineering giant lost investors confidence after it invested heavily in the shares of tainted Satyam in early January 09. The stock thereafter touched a low of 553 on 9th March 09 on heavy dumping by the investors. However, the stock regained swiftly unabated amid upbeat market sentiment prevailing since mid March 09 and touched a high of 859 on Monday last but ended in the negative over its previous close on profit taking and loss of Satyam bid. The stock has surged more than 55% during the past 20 trading sessions. The stock may see more profit booking at higher levels and may dip further to 802/774 once it trades and remains below 816.25. Strong resistance for the stock exists at 834.75 which if crossed with volumes, one should not carry short position.
STERLING BIO FUTURE (Last close 137.50)
The Company's principal activity is to manufacture and sell healthcare products of gelatine and co-enzyme Q10. Its customers comprises of food, pharmaceuticals and photographic industries, with users in technical applications. The Company operates in United States, Japan and Europe. For the full year ended December 2008, net profit rose 19.31% to Rs 219.18 crore in the year ended December 2008 as against Rs 183.71 crore during the previous year ended December 2007. The stock of the company after moving range bound for the past one week closed on Monday marginally higher albeit with low volumes. The stock appears positive on charts and may move up to 143/147 once it trades with volumes above 138.50. Strong support for the stock exists at 135.75.
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 16th April 2009
TRADING STRATEGY FOR 16TH APRIL 2009
(Based on technical by O P AGARWAL)
Market rally continues
Markets opened gap down yesterday on the back of negative cues from the global markets and the Sensex after opening 162 points lower plunged sharply touching a low of 10719 on earnings guidance warning by the IT bellwether Infosys. The markets, thereafter, turned positive and recovered on strong buying seen in frontline stocks of banking, power, metal, auto, capital goods and reality. The market rallied smartly aided by bear covering and fresh buying by institutions and HNIs on the hope that the apex bank may soon take some positive decision on rate cut. The Sensex finally closed at 11285 gaining 318 points after making a high of 11338 intra day up more than 600 points from the days low. The Nifty, which had slipped to 3311 after opening at 3381, rallied to 3497 before settling for the day at 3484, with smart gain of 101 points or 3%. Readers are advised to trade with caution in view of high volatility and huge upsurge witnessed in the markets during the past one month.
NIFTY FUTURE (Last close 3492.90)
NF after opening gap down yesterday on the back of weak global cues, recovered progressively thereafter and bounced back gaining 102 points over its previous close on the back of strong buying in front line stocks and short covering by bears. The session witnessed high volatility and intra day swing of more than 180 points. NF has surged almost 1000 points in a short span of 22 trading sessions since early March 09, when it made a low of 2525. The market correction/profit taking any time now is not ruled out in view of such massive gain. Readers are therefore, advised to trade with caution. NF may gain further strength once it trades and remains above 3531.75, whereby it may move up to 3559/3588. Strong support for NF exists at 3436.25, which if breached decisively NF may slide to 3401/3364.
BHARTI AIRTEL FUTURE (Last close 687.25)
The telecom stock after remaining range bound for the past four trading sessions closed yesterday above its weekly resistance gaining over 3%. The stock appears positive on weekly charts and may move further up to 701/709 once it trades and remains above 692.75. Strong support for the stock exists at 683.25.
DIVIS LAB FUTURE (Last close 955.35)
The company is engaged in research and development of pharmaceuticals. The company is the largest manufacturer of some peptide reagents and protected amino acids worldwide. The stock of the company after moving range bound for the past one week closed yesterday above its weekly resistance gaining around 4% with average volumes. The stock appears positive on weekly charts and may move up further to 977/993 once it trades and remains above 961.75. Strong support for the stock exists at 944.25.
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 16TH APRIL 2009
(Based on technical by O P AGARWAL)
Market rally continues
Markets opened gap down yesterday on the back of negative cues from the global markets and the Sensex after opening 162 points lower plunged sharply touching a low of 10719 on earnings guidance warning by the IT bellwether Infosys. The markets, thereafter, turned positive and recovered on strong buying seen in frontline stocks of banking, power, metal, auto, capital goods and reality. The market rallied smartly aided by bear covering and fresh buying by institutions and HNIs on the hope that the apex bank may soon take some positive decision on rate cut. The Sensex finally closed at 11285 gaining 318 points after making a high of 11338 intra day up more than 600 points from the days low. The Nifty, which had slipped to 3311 after opening at 3381, rallied to 3497 before settling for the day at 3484, with smart gain of 101 points or 3%. Readers are advised to trade with caution in view of high volatility and huge upsurge witnessed in the markets during the past one month.
NIFTY FUTURE (Last close 3492.90)
NF after opening gap down yesterday on the back of weak global cues, recovered progressively thereafter and bounced back gaining 102 points over its previous close on the back of strong buying in front line stocks and short covering by bears. The session witnessed high volatility and intra day swing of more than 180 points. NF has surged almost 1000 points in a short span of 22 trading sessions since early March 09, when it made a low of 2525. The market correction/profit taking any time now is not ruled out in view of such massive gain. Readers are therefore, advised to trade with caution. NF may gain further strength once it trades and remains above 3531.75, whereby it may move up to 3559/3588. Strong support for NF exists at 3436.25, which if breached decisively NF may slide to 3401/3364.
BHARTI AIRTEL FUTURE (Last close 687.25)
The telecom stock after remaining range bound for the past four trading sessions closed yesterday above its weekly resistance gaining over 3%. The stock appears positive on weekly charts and may move further up to 701/709 once it trades and remains above 692.75. Strong support for the stock exists at 683.25.
DIVIS LAB FUTURE (Last close 955.35)
The company is engaged in research and development of pharmaceuticals. The company is the largest manufacturer of some peptide reagents and protected amino acids worldwide. The stock of the company after moving range bound for the past one week closed yesterday above its weekly resistance gaining around 4% with average volumes. The stock appears positive on weekly charts and may move up further to 977/993 once it trades and remains above 961.75. Strong support for the stock exists at 944.25.
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 17th April 2009
TRADING STRATEGY FOR 17TH APRIL 2009
(Based on technical by O P AGARWAL)
Markets slide sharply on profit taking
Markets opened higher yesterday on the back of positive cues from the global markets. However, the markets soon turned negative on heavy selling in front line and index heavy weight stocks led by Reliance Group. The sharp slide yesterday could be attributed to profit booking by the investors at higher levels. The market saw wild fluctuations yesterday with the Sensex fluctuating by more than 350 points and the Nifty by more than 150 points between their intra- day high and low. Market participants refrained from building fresh positions ahead of uncertainty about the out come of the LS polls. The Sensex finally ended the session yesterday losing a massive 337 points at 10947, whereas the Nifty closed at 3369 with a loss of 114 points. In intra day trades the Nifty touched a high of 3511 and a low of 3354 whereas the Sensex made a high of 11367 and a low of 10900. Inflation dropped further down again raising hopes of rate cut and suitable measures to boost the sagging economy by the RBI. The market breadth however, was weak at close. Out of 2653 stocks traded on BSE, 1742 stocks closed on a negative note. 851 stocks posted gains and 60 stocks ended flat. Markets may remain highly volatile with bouts of buying and selling intermittently, and therefore, readers are advised to trade with caution and remain stock specific.
NIFTY FUTURE (Last close 3375.60)
The counter after opening marginally higher soon slipped in to the red on heavy selling in front line stocks and profit taking at higher levels an indication to which was given in these columns yesterday. However, the counter may reverse yesterdays fall once it trades and remains above 3422.75, whereby it may move up to 3452/3498. Strong support for NF exists at 3352.25, which if breached decisively NF may slide further to 3327/3292.
EDUCOMP FUTURE (Last close 2204.10)
The stock closed yesterday marginally higher over its previous close with high volumes amid wide fluctuation and intra day swing of more than 170 points. The stock appears positive on weekly charts and may move up to 2257/2298, once it trades and remains above 2217.75. Strong support for the stock exists at 2183.25.
HIDUSTAN UNILEVER FUTURE (Last close 239.85)
The stock after moving range bound for the past one week closed yesterday above its weekly resistance with average volumes. The stock appears positive on weekly charts and may move further up to 245/249 once it trades and remains above 240.50. Strong support for the stock exists at 237.25.
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 17TH APRIL 2009
(Based on technical by O P AGARWAL)
Markets slide sharply on profit taking
Markets opened higher yesterday on the back of positive cues from the global markets. However, the markets soon turned negative on heavy selling in front line and index heavy weight stocks led by Reliance Group. The sharp slide yesterday could be attributed to profit booking by the investors at higher levels. The market saw wild fluctuations yesterday with the Sensex fluctuating by more than 350 points and the Nifty by more than 150 points between their intra- day high and low. Market participants refrained from building fresh positions ahead of uncertainty about the out come of the LS polls. The Sensex finally ended the session yesterday losing a massive 337 points at 10947, whereas the Nifty closed at 3369 with a loss of 114 points. In intra day trades the Nifty touched a high of 3511 and a low of 3354 whereas the Sensex made a high of 11367 and a low of 10900. Inflation dropped further down again raising hopes of rate cut and suitable measures to boost the sagging economy by the RBI. The market breadth however, was weak at close. Out of 2653 stocks traded on BSE, 1742 stocks closed on a negative note. 851 stocks posted gains and 60 stocks ended flat. Markets may remain highly volatile with bouts of buying and selling intermittently, and therefore, readers are advised to trade with caution and remain stock specific.
NIFTY FUTURE (Last close 3375.60)
The counter after opening marginally higher soon slipped in to the red on heavy selling in front line stocks and profit taking at higher levels an indication to which was given in these columns yesterday. However, the counter may reverse yesterdays fall once it trades and remains above 3422.75, whereby it may move up to 3452/3498. Strong support for NF exists at 3352.25, which if breached decisively NF may slide further to 3327/3292.
EDUCOMP FUTURE (Last close 2204.10)
The stock closed yesterday marginally higher over its previous close with high volumes amid wide fluctuation and intra day swing of more than 170 points. The stock appears positive on weekly charts and may move up to 2257/2298, once it trades and remains above 2217.75. Strong support for the stock exists at 2183.25.
HIDUSTAN UNILEVER FUTURE (Last close 239.85)
The stock after moving range bound for the past one week closed yesterday above its weekly resistance with average volumes. The stock appears positive on weekly charts and may move further up to 245/249 once it trades and remains above 240.50. Strong support for the stock exists at 237.25.
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.
Re: Trading strategy for 17th April 2009
opagarwal ji ,
I request you that please don't open new thread for every day.
you can do it in one thread every day instead of opening new thread everyday.
the name of this thread can
be this - "Trading strategy for every day" or " Daily Trading strategy " .
Thanks & Regards
Hemant
opagarwal ji ,
I request you that please don't open new thread for every day.
you can do it in one thread every day instead of opening new thread everyday.
the name of this thread can
be this - "Trading strategy for every day" or " Daily Trading strategy " .
Thanks & Regards
Hemant
Last edited:
Trading strategy for 20th April 2009
TRADING STRATEGY FOR 20TH APRIL 2009
(Based on technical by O P AGARWAL)
Market end positive with cautious optimism
Markets closed the week on a positive note led by strong buying seen in banking and capital goods stocks. The Sensex finally ended the week gaining around 2% and the Nifty with a gain of 1.3 %. The Sensex has in the process over a six week period have gained a massive 2697 points or 32.4%. Markets this week may remain volatile in view of quarterly results of major corporate houses and RBIs meeting on Tuesday to review interest rates. Market participants are hopeful that with the inflation nearing zero level the apex bank may be inclined to cut interest rates further to give a boost to the slowing economy. Meanwhile, the India Meteorological Department last week announced its forecast for a near normal monsoon this year. The IMDs outlook about the monsoon bears positive bearing on market sentiment as monsoon rains are a major influence on output of key crops which translate into boosting the economic activity. However, a section of traders opine that a third of market jump over a six week period is vulnerable to correction and therefore, readers are advised to trade with caution with strict stops for every trade.
NIFTY FUTURE (Last close 3381.30)
The counter closed flat during the previous week on profit taking in index heavy weight stocks at higher levels. NF witnessed a swing of more than 185 points amid high volatility which is not ruled out this week also. The counter may remain in the range of 3284-3478 this week, break above NF may move up to 3511/3557 or else break below NF may slide to 3250/3214. For todays trading the counter will gain strength once it remains and trades above 3404.75, whereby it may move up to 3439/3462. Strong support for NF exists at 3335.25, which if breached decisively NF may slide to 3308/3289.
POWER GRID CORPN FUTURE (Last close 98.00)
The Companys principal business is transmission of bulk power across different states of India. It also provides broad band capacity to various telecom service providers like Internet service provider (ISPs), cellular operators, basic service providers, paging operators, call centres, tele-medicine, government departments, broadcasters, corporates etc. for voice, data and video and also other telecom services. The Government of India holds 86.36% stake in the company. Meantime, the stock after remaining range bound during the previous week closed on Friday above its short term trend line with high volumes. The stock appears positive on weekly charts. BUY the stock above 98.75 with stop of 95.25. The stock may move up to 103/107. Strong support exists at 93.50.
RELIANCE FUTURE (Last close 1723.4.40)
The stock witnessed institutional selling at higher levels during the past two trading sessions pulling the stock down. However, the stock remains positive on weekly charts and may move to 1766/1792 once it trades and remains above 1739.75. Strong support for the stock exist at1708.75.
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 20TH APRIL 2009
(Based on technical by O P AGARWAL)
Market end positive with cautious optimism
Markets closed the week on a positive note led by strong buying seen in banking and capital goods stocks. The Sensex finally ended the week gaining around 2% and the Nifty with a gain of 1.3 %. The Sensex has in the process over a six week period have gained a massive 2697 points or 32.4%. Markets this week may remain volatile in view of quarterly results of major corporate houses and RBIs meeting on Tuesday to review interest rates. Market participants are hopeful that with the inflation nearing zero level the apex bank may be inclined to cut interest rates further to give a boost to the slowing economy. Meanwhile, the India Meteorological Department last week announced its forecast for a near normal monsoon this year. The IMDs outlook about the monsoon bears positive bearing on market sentiment as monsoon rains are a major influence on output of key crops which translate into boosting the economic activity. However, a section of traders opine that a third of market jump over a six week period is vulnerable to correction and therefore, readers are advised to trade with caution with strict stops for every trade.
NIFTY FUTURE (Last close 3381.30)
The counter closed flat during the previous week on profit taking in index heavy weight stocks at higher levels. NF witnessed a swing of more than 185 points amid high volatility which is not ruled out this week also. The counter may remain in the range of 3284-3478 this week, break above NF may move up to 3511/3557 or else break below NF may slide to 3250/3214. For todays trading the counter will gain strength once it remains and trades above 3404.75, whereby it may move up to 3439/3462. Strong support for NF exists at 3335.25, which if breached decisively NF may slide to 3308/3289.
POWER GRID CORPN FUTURE (Last close 98.00)
The Companys principal business is transmission of bulk power across different states of India. It also provides broad band capacity to various telecom service providers like Internet service provider (ISPs), cellular operators, basic service providers, paging operators, call centres, tele-medicine, government departments, broadcasters, corporates etc. for voice, data and video and also other telecom services. The Government of India holds 86.36% stake in the company. Meantime, the stock after remaining range bound during the previous week closed on Friday above its short term trend line with high volumes. The stock appears positive on weekly charts. BUY the stock above 98.75 with stop of 95.25. The stock may move up to 103/107. Strong support exists at 93.50.
RELIANCE FUTURE (Last close 1723.4.40)
The stock witnessed institutional selling at higher levels during the past two trading sessions pulling the stock down. However, the stock remains positive on weekly charts and may move to 1766/1792 once it trades and remains above 1739.75. Strong support for the stock exist at1708.75.
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.
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