Daily Trading strategy

[opagarwal]

Trading strategy for 8th May 2009

TRADING STRATEGY FOR 8TH MAY 2009
(Based on technical by O P AGARWAL)


Markets close positive in late rally


The market opened on a positive note yesterday on the back of strong global cues and remained range bound through out the session. Market sentiment remained positive as fears over the financial status of leading U.S. banks subsided to a marked extent. The Sensex, after gap up opening of 100 points rose to a high of 12143 in a sharp run up but could not sustain and soon turned listless. However, the Sensex finally ended the session at 12116 gaining 164 points whereas the Nifty closed with a gain of 58 points at 3683 making a high of 3692 and a low of 3617 during the intra day trades. Metal stocks rose sharply yesterday on the back of firm trend in the LME aiding the market sentiment further. Meantime, readers are advised to trade with caution in view of parliamentary election results due to be announced next week, and with fractured mandate in sight, the markets may get impacted negatively.


NIFTY FUTURE (Last close 3682.70)
The counter after opening flat yesterday moved range bound through out the session amid high volatility. NF closed the session gaining 51 points off the days high in late rally in frontline stocks. The counter appears positive on charts but will gain further strength once it trades and remains above 3703.75, whereby it may move further to 3726/3747. Near term strong support for NF exists at 3648.25 which if breached decisively it may slide to 3622/3595.


M & M FUTURE (Last close 516.20)
The company manufactures automobiles, farm equipment and automotive components which include light, medium and heavy commercial vehicles, jeep type vehicles and passenger cars to name a few. The company fared very poorly in its Q3 results where its net profit declined 99.7% to Rs 1.20 crore on 14.6% rise in net sales to Rs 2519.25 crore. Meantime, the workers at the companys Nashik plant have resorted to an illegal tool down strike from 5 May 2009 which may affect the production severely thereby affecting the bottom line further. However, the stock remained buoyant and surged almost 100 % during the past two and half months making a high of 563 on the 4th May 2009 but during the past two trading sessions the stock witnessed profit taking and closed yesterday 3% lower. The stock may further slide to 501/494 once it trades and remains below 508.25. Strong resistance for the stock exists at 521.75.


TV 18 FUTURE (Last close 94.10)
The major activities of the entire group of Television Eighteen is to provide programming content on business and entertainment channels for broadcasting purposes. It is one of the top news channels in India with network of offices in India and abroad. The companys financials have been impacted owing to general slowdown in the economy resulting in low advertisement revenue. However, with signs of improvement in the general economy, the company hopes to do better during this financial year. Meanwhile, the stock after remaining range bound during the past three trading sessions closed yesterday above its weekly resistance gaining 6% over its previous close. The stock appears positive on weekly charts and may surge further to 98/103 once it trades and remains above 94.75. Strong support for the stock exists at 91.00.



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.

 

[opagarwal]

Trading strategy for 11th May 2009

TRADING STRATEGY FOR 11TH MAY 2009
(Based on technical by O P AGARWAL)


Markets may remain volatile

Markets closed positive for the ninth successive week with the Sensex at 11876 gaining a whopping 473 points, whereas the Nifty ended the week gaining 146 points at 3620. FIIs remained buyers during the previous week and bought equity worth more than 3000 crores, which aided the market sentiment. However market participants despite positive global cues preferred to exit at higher levels on Friday last ahead of exit polls analysis once polling comes to an end on Wednesday. It is believed that election results will show fractured mandate which may have negative impact on the markets and therefore, investors are reluctant to build fresh positions till final results emerge. The markets may therefore remain volatile this week taking cues from global markets which appear at present to be in better shape. Meantime, government released inflation data on Friday last which inched up to 0.70% for the week ended April 25, 2009. Readers are therefore, advised to trade with caution keeping stops for every trade.

NIFTY FUTRE (Last close 3623.00)
The counter which opened the week gap up on strong global cues ended with a gain of 149 points amid high volatility during the week. The counter despite appearing overstretched on charts may take NF further up if strong global cues persist. NF may remain in the range of 3547-3703, break above NF may move up to 3739/3785, or else break below NF may slide to 3507/3462. For todays trading the counter will gain strength once it trades and remains above 3667.75 whereby it may move up to 3687/3703. Strong support for NF exists at 3578.25 which if breached decisively NF may slide to 3549/3531.

IRB INFRA FUTURE (Last close 102.65)
The company is mainly in the business of developing toll bridges and is one of the biggest road toll operator in the country having 30 toll plazas in operation. The company has under its plan to develop an integrated township on 1,400 acres along the Mumbai-Pune expressway. The company has large pending orders valued at more than 3000 crores. The company although fared moderately previously hopes to save substantially in FY 09-10 in view of falling input costs viz. bitumen, steel and cement. Meantime, the stock after moving range bound for the past one week closed gaining seven percent with positive bias. The stock appears positive on weekly charts and may move up to 107/111 once it trades and remains above 103.75. Strong support for the stock exists at 99.75.

ESSAR OIL FUTURE (Last close 154.50)
The company is an integrated oil company, which operates three divisions, namely, refinery and marketing, exploration and production, and energy. The company explores, refines and sells oil. The stock has doubled since April 2009 on market speculation doing round since long that the company may delist its shares and the company may acquire 50% stake in Kenya Petroleum Refinery of Mombasa thereby increasing its refining capacity. The stock however, after remaining range bound during the previous week closed with a gain of more than seven percent with positive bias. The stock may move further up to 161/169 once it trades and remains above 156.75. Strong support for the stock exists at 149.25.

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.

 

[opagarwal]

Trading strategy for 12th May 2009

TRADING STRATEGY FOR 12TH MAY 2009
(Based on technical by O P AGARWAL)


Profit taking pulls the market down


The market after opening on a positive note yesterday amid overnight strong U S markets failed to sustain at higher levels and slipped into the red after an hours trading. Market participants preferred to exit at higher levels and book profit ahead of election results this weekend. Investors too were reluctant to build fresh positions and were seen cutting their present holdings. The market witnessed sharp losses during the final hour on heavy off loading of frontline stocks. The Sensex finally closed the session with a loss of 193 points at 11682. The Nifty closed the day at 3554 off days low of 3534 losing 66 points. Realty stocks were the major losers together with Capital goods, power, metal and oil stocks. Readers are advised to trade with caution with strict stops for every trade.


NIFTY FUTURE (Last close 3552.05)
The counter after gap up opening on positive global cues failed to sustain at higher levels under selling pressure. NF slipped yesterday to a low of 3532, absolutely near the support indicated in these columns and retraced to close at 3552 but remained below its short term weekly support indicating weakness of the counter. For todays trading NF may slip further to 3489/3462 once it trades and remains below 3513.25. NF may face resistance at 3587.75.


HPCL FUTURE (Last close 248.95)
The stock after remaining range bound during the past two trading sessions closed yesterday above its short term trend line with positive bias. The stock appears positive on weekly charts and may move up to 255/259 once it trades and remains above 251.25. Strong support for the stock exists at 246.25.


RELIANCE INFRA FUTURE (Last close 763.55)
The stock has been on decline for the past four trading sessions on profit taking. The stock closed lower by one percent over its previous close with high volumes. The stock may witness further profit booking at current levels and may slip to 748/739 once it trades and remains below 759.25. Strong resistance for the stock exists at 771.75.



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.

 

[opagarwal]

Trading strategy for 13th May 2009

TRADING STRATEGY FOR 13TH MAY 2009
(Based on technical by O P AGARWAL)


Market rally surprises one and all


Markets opened on a subdued note yesterday and remained range bound till a little past noon, but then, a sudden buying spree in front line stocks turned the market sentiment positive despite weak Asian markets and dismal IIP numbers. The uptrend continued unabated till the closing hours on strong buying interest and short covering. Stocks from all sectors gained substantially and closed with impressive gains. Speculation was also high yesterday that the election will result in the formation of a stable government sans the left. It is widely believed that market may witness more volatility once exit polls start rolling from today evening onwards once final phase of polling ends. The Sensex, after opening flat yesterday finally settled at 12158 gaining a whopping 475 points after touching a high of 12194 during the closing hours on frenzied buying across the board. The Nifty dipped to a low of 3534 in early trade yesterday but closed the session at 3681 gaining an impressive 126 points after making a high of 3691 in late trade. Readers are cautioned to trade judiciously with strict stops.


NIFTY FUTURE (Last close 3689.95)
NF after opening flat yesterday remained range bound till early noon, but then, a spate of buying in frontline stocks pushed the counter in late trades to a high of 3702.50, exactly at the level indicated under weekly range in these columns on Monday the 11th May 2009. NF finally closed yesterday near its days high making an impressive gain of 137 points. The counter may further gain momentum once it trades and remains above 3723.75, whereby it may move up to 3752/3776. Strong short term support for NF exists at 3631.25 which if breached decisively NF may then slide to 3607/3578.


LANCO INFRA FUTURE (Last close 225.50)
The company being one of the fastest growing power and infrastructure majors hopes that its core power business will drive the long-term growth and tide over the near-term crisis. The company has lined up capital investment of $3 billion in power projects for just 2009-10 with its projects on schedule as per companys executive chairman Mr. Rao. Meantime, the stock, after remaining range bound during the past four trading sessions, closed yesterday gaining 3% with positive bias. The stock appears positive on weekly charts and may move further up to 234/239 once it trades and remains above 226.75. There exists strong support for the stock at 220.25.


ACC FUTURE (Last close 596.95)
The company, in which Swiss cement maker Holcim holds more than 46 percent, is Indias largest cement maker. The company hopes that cement consumption will rise in second half of this year which is reflected in its April dispatches which rose four percent from a year ago. Meantime, the stock of the company after making a high of 671 on 6th May 2009 dipped to a low of 570 yesterday but sharply recovered to close with marginal gain over its previous close. The stock appears to move up to 612/619 once it trades and remains above 602.75. Strong support for the stock exists at 594.25.



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.

 

[opagarwal]

Trading strategy for 14th May 2009

TRADING STRATEGY FOR 14TH MAY 2009
(Based on technical by O P AGARWAL)


Markets close lower on profit taking amid high volatility


Markets opened flat yesterday but soon slipped in the red on selling pressure as market participants preferred to book profit at higher levels and refrained from building fresh positions ahead of exit polls. The market however, turned positive and recovered smartly in mid afternoon but the rally fizzled out soon under selling pressure during the closing hour on concerns of fractured mandate. Shares of IT, bank, metal and FMCG closed with sharp losses whereas cement and select consumer durables stocks closed with handsome gains. The Sensex, closed the session yesterday at 12019 losing 138 points after making days high of 12256 and a low of 11934. The Nifty closed 45.85 points down at 3635.25 after hitting a high of 3709 and a low of 3610 during the intra day trades. Readers are advised to trade with caution keeping strict stops for every trade.


NIFTY FUTURE (Last close 3638.40)
NF after opening flat yesterday closed the day losing 51 points amid highly volatile session with bout of buying and selling on speculation over formation of next government. Readers will appreciate that NF retraced from its days high of 3703 exactly at the resistance level of 3703.75 indicated in these columns yesterday. Meantime, the counter may remain highly volatile today and taking cues from global markets and exit polls results NF may move up to 3693/3727 once it trades and remains above 3675.75. Strong short term support for NF exists at 3598.25 which if breached decisively then NF may slide further to 3578/3549.


INDIA INFOLINE FUTURE (Last close 85.35)
The company offers services ranging from equity and commodity trading to research and owns and manages an online trading website. Net profit of the company declined 64.24% to Rs 11.58 crore in the quarter ended March 2009 as against Rs 32.38 crore during the previous quarter ended March 2008. Sales declined 51.99% to Rs 103.70 crore in the quarter ended March 2009 as against Rs 216.00 crore during the previous quarter ended March 2008. However, the stock has been a strong out performer against the broader indices since last few weeks. The stock surged more than 100% during the past two months. Meantime, the stock after remaining range bound during the past one week slipped 5% and closed yesterday with negative bias on profit booking. The stock may slip further to 79-74 once it trades and remains below 83.50. Strong resistance for the stock exists at 88.50.


SHREE RENUKA SUGAR FUTURE (Last close 112.35)
The company is s a fully integrated manufacturer of sugar, power and ethanol. Meantime, the company's consolidated net profit remained flat at Rs 33.80 crore on 22.25% fall in net sales to Rs 429 crore in Q2 March 2009 over Q2 March 2008. The stock of the company saw a huge surge in its valuation during the past two months. Further, the stock after remaining range bound during the past one week closed yesterday losing 3% on profit taking. The stock appears with negative bias on charts and may further slide to 107/104 once it trades and remains below 111.25. Strong resistance for the stock exists at 114.75.



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.

 

[opagarwal]

Trading strategy for 15th May 2009

TRADING STRATEGY FOR 15TH MAY 2009
(Based on technical by O P AGARWAL)


Markets close lower on selling pressure


Markets opened gap down yesterday on weak global cues together with investors disinterest in the market ahead of poll results and subsequent formation of government at the Centre. However, the market did attempt to retrace from its lower levels but failed to sustain under selling pressure. While the Sensex, which dipped over 300 points to 11,695 in early trade, closed the session at 11,872 with a loss of 146 points or 1.22%, the Nifty closed at 3593.45, losing 41 points after making a low of 3537 in early trade yesterday. Major losers yesterday were the stocks belonging to the Oil, capital goods and metal sectors. Readers may note that the positive market sentiment during the past one week or so is the result of continuous buying by the FIIs which bought a massive 4085 worth of stocks on Wednesday and a staggering total of around 10k crores worth of stocks during the month of May 2009. Markets may remain volatile today and readers are advised to trade with caution.


NIFTY FUTURE (Last close 3603.65)
NF closed yesterday losing over one percent amid high volatility and intra day swing of more than 80 points. NF dipped in early trade making a low of 3550, absolutely near the level indicated in these columns yesterday and bounced back. The counter to gain strength needs to trade and remain above 3647.75 whereby NF may move up to 3679/3702. Strong support for NF exists at 3559.25 which if breached decisively it may slide to 3529/3510.

IOB FUTURE (Last close 59.85)
The mid sized banking PSU after remaining range bound during the past three days closed yesterday with positive bias gaining marginally. The stock appears positive on weekly charts and may move further up to 64/67 once it trades and remains above 60.50. Strong support for the stock exists at 57.75.


EKC FUTURE (Last close 140.00)
The stock after remaining range bound during the past three trading sessions, closed yesterday gaining 3% over its previous close albeit with low volumes. The stock appears positive on weekly charts and may move up to 145/148 once it remains and trades with volumes above 140.75. Strong support for the stock exists at 137.50.



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 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.

 

[veerkey]

Re: Trading strategy for 15th May 2009

Hi to all,

happy to be part of tradeji

the markets today also may be volatile, so trade with care.

Stocks to watch

torrent pharma, punj lloyd,ashok leyland,blue star ltd,
yes bank.

Happy trading

rathna

 

[opagarwal]

Trading strategy for 18th May 2009

TRADING STRATEGY FOR 18TH MAY 2009
(Based on technical by O P AGARWAL)



Markets in celebration mode


Markets are set to surge today on expectations that the clear election victory would lead to a strong and stable government that would accelerate the pace of economic reform. A strong Congress-led coalition, free of pressures from its former communist partners, has boosted the prospect of reforms to encourage growth. A government at the centre without the support of the parties with narrower national outlook is very much supportive for the markets. It is hoped that the insurance and pension sectors will be further opened up for foreign investments with increased investment in infrastructure and other key sectors. The government may continue its softer interest rate policy which may help in lifting the sagging economy. In view of political stability and reforms program continuing, both FDI and FII investment will also get a boost. In nutshell, markets appear to be in buoyant mode for the time being and investors may take fresh positions selectively.


NIFTY FUTURE (Last close 3684.35)
The counter closed the week gaining 61 points amid high volatility and intra week swing of more than 190 points. The firmness of the counter throughout the week gave enough indication of a stable government and finally the UPA returned with a thumping majority to everybodys surprise thereby paving the way for faster economic reforms. Meantime, NF may remain this week in the range of 3625-3898, break above NF may further move up to 3969/4031, or else break below NF may slide to 3588/3529. For todays trading the counter after gap up opening may move up to 3895/3957.


GMR INFRA FUTURE (Last close 113.25)
GMR Infrastructure generates, transmits and distributes electrical power. It also develops, maintains and operates airports and roads. The board of directors of GMR Group, at their meeting in Bangalore on Saturday, decided to seek shareholder approval to raise up to $1 billion to fund growth plans, which include road and power projects. The company hopes to do better with stable government at the centre. Meantime, the stock of the company after remaining range bound for the past five trading sessions closed the week marginally lower but with positive bias. The stock may move up to 119/124 once it trades and remains above 114.25. Strong support for the stock exists at 109.50.


UNITED SPIRITS FUTURE (Last close 676.75)
In a recent development Heineken and UB have settled their differences. Under the terms UB will bottle and distribute Heineken brands in the country. It will be paid a one-time fee of Rs 300 crore. Meantime the stock after remaining range bound for the past four trading sessions closed the week with marginal gain. The stock appears positive on weekly charts and may move up further to 698/719 once it trades and remains above 682.75. Strong support for the stock exists at 667.25.



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.

 

[opagarwal]

Trading strategy for 19th May 2009

TRADING STRATEGY FOR 19TH MAY 2009
(Based on technical by O P AGARWAL)


Market mood remains upbeat


Investors yesterday gave three cheers to the market after the decisive election victory of Congress led UPA whereby the Sensex leapt more than seventeen percent gaining 2110 points and closed the day at 14284 its highest close since September 11, 2008. Market participants appear confident that a strong coalition, free of the pressures from its former communist partners, has boosted the prospect of reforms to encourage growth. The election victory has also raised expectations the government could sell stakes in state-run firms to help fund a widening fiscal deficit and ease the pressure on market borrowing. It is further apprehended that the bears may also run to cover up their pending short positions, which they missed yesterday on low volumes, on fears of further upsurge in the stock prices thereby aiding the buoyancy in the markets. It was observed that stocks across the board hit impressive highs yesterday with those from the realty, banking, capital goods, power, metal and oil sectors attracting buying at sharply higher levels. Market euphoria may continue for some more time before consolidating with an eye on budget proposals.


NIFTY FUTURE (Last close 4332.05)
The counter, as expected, opened gap up yesterday on the back of decisive victory of Congress led UPA and surged a whopping 647 points after multiple positive circuits forcing the trading to halt for the day. The counter after breaching all its weekly levels yesterday may however, face resistance today at 4457.75 which if crossed over with volumes may take NF to 4519/4592. Strong support for NF exists at 4217.25.


BHEL FUTURE (Last close 2107.85)
The company is one of the major suppliers of power equipments but of late has by its own admission taken price cuts in some categories of its power equipment due to intense competition from Chinese players which may affect the bottom line of the company. The stock however, closed yesterday gaining 394 rupees surging a whopping 33% over its previous close albeit with very low volumes. It is now trading at a P/E of 38 times its trailing twelve months earnings which appears expensive but in the heat of momentum and short covering the stock may gain further, but may face resistance at 2193.75, which if crossed with volumes may take the stock to 2235/2302. Strong support for the stock exists at 2028.25.


TATA POWER FUTURE (Last close 1079.45)
The stock after touching a high of 1090 closed yesterday gaining a massive 166 rupees over its previous close albeit with a meager volume of 15 contracts. The counter may face resistance at 1119.75 which if crossed decisively with volumes may take the stock further up to 1145/1172. Strong support for the stock exists at 1036.25.



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.

 

[opagarwal]

Trading strategy for 20th May 2009

TRADING STRATEGY FOR 20TH MAY 2009
(Based on technical by O P AGARWAL)



Markets end flat on profit booking



The market opened gap up yesterday on strong global cues but profit taking at higher levels pulled the market down to negative zone within minutes of trading. However, the market bounced back again and moved range bound for the better part of the session. The Sensex finally closed the day with a meager gain of 18 points at 14302 amid intra day swing of about 1100 points while the Nifty finished flat with marginal loss of 5 points at 4318. The Nifty hit an intra-day high of 4,509 which was almost double its low made in the month of October 2008. The market cloaked one of the highest turnovers on record yesterday at more than 1.5 trillion rupees. The market breadth remained positive with gainers outnumbering losers by 1924 to 742. The gainers yesterday included stocks from the realty, banking, capital goods, auto and metal sectors while, pharma, IT and oil sector stocks lost heavily. Market volatility is not ruled out during this week. Meantime, investors are eagerly waiting to hear the name of the finance minister who may prove to be one of the key factors for the market trend.


NIFTY FUTURE (Last close 4342.90)
The counter after gap up opening yesterday on the back of strong global cues slipped within minutes to a low of 4186 on profit taking. However, the counter soon bounced back and remained range bound till late afternoon when a fresh sell off during the closing hours pulled down NF to close flat finally. The counter, however, appears positive on weekly charts and NF may move up to 4452/4519 once it trades and remains above 4395.75. Strong support for NF exists at 4258.25.


TATA MOTORS FUTURE (Last close 305.80)
In a latest development the company has finalized plans to issue bonds of various maturity duly guaranteed by SBI to repay the bridge loan taken by the company during JLR deal. The Bond issue may come as a big relief as per company sources. Meantime, the stock closed yesterday way above its weekly resistance with high volumes and may therefore, move further up to 313/321 once it trades and remains above 307.75. Strong support for the stock exists at 301.25.


ONGC FUTURE (Last close 1001.35)
The stock closed yesterday flat amid high volatility and intra day swing of more than 175 rupees with high volumes. The stock remains positive on weekly charts. And may move up to 1019/1038 once it trades and remains above 1007.75. Strong support for the stock exists at 997.25.



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.