NEWSLETTER 25.08.08

Kotak Bank : (568.75) Buy KOTAKBANK at current price for a target of 586 and 600, if cross 600 then goes up to 645. Stoploss at 545.

ICICI Bank : (644.55) Buy ICICIBANK above 645 for a target of 665-675, if cross 675 then goes up to 718. Stoploss at 632.

ABB : (899.65) Buy ABB above 898 for a target of 920 and 937. Stoploss at 880.

GHCL : (85.80) Buy GHCL above 86 for a target of 91 and 101. Stoploss at 76.



Sensex : (14401.49) Today Sensex face resistance at 14509, if cross 14509 then goes up to 14616-14724. Sensex find support at 14322, if break 14322 then fall up to 14215-14028.

Nifty : (4327.45) Today Nifty face resistance at 4347-4361, if cross 4361 then goes up to 4395 and 4429. Nifty find support at 4304, if 4304 break then goes down up to 4270 and 4213.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CAIRN INDIA (247)
Buy Above 248.45 Target 252.35, 256.00
Sell Below 245.50 Target 241.25, 237.00
MERCATOR LINES (79)
Buy Above 80.20 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
ADHUNIK METALIKS (112)
Buy Above 113.60 Target 116.40, 120.00
Sell Below 110.55 Target 108.45, 104.00
SEL MANUFACTURING (285)
Buy Above 288.55 Target 296.75, 305.00
Sell Below 281.80 Target 275.05, 267.00
INDIABULLS (251.50)
Buy Above 253.65 Target 258.80, 265.00
Sell Below 249.50 Target 245.25, 240.00
YES BANK (128)
Buy Above 130.00Target 134.25, 138.00
Sell Below 127.05 Target 124.15, 120.00

Others for Intraday: RPL. REL INFRA, AXIS BANK, KOTAK BANK, PUNJAB NATIONAL BANK, BANK OF BARODA, BANK OF INDIA.


Market may open up. Market may up between 10.00 and 10.20 Market may steady or up side between 11.17 and 11.37. Market may close at up to previous closing.




SHARE YOUR THOUGHTS! LEAVE A COMMENTS


Opening Bell Call
Buy

RELIANCE - Reliance Industries Ltd
RPL - Reliance Petroleum Limited
IFCI - IFCI Limited
RNRL - Reliance Natural Resources Limited
NEYVELILIG - Neyveli Lignite Corporation Limited

On 22nd August 2008 - The BSE Sensex closed at 14,401 (up 157 points) while the NSE Nifty closed at 4,327 (up 43 points).

Opening Bell Call
Sell

INFOSYSTCH - Infosys Technologies Ltd.
CHAMBLFERT - Chambal Fertilizers & Chemicals Ltd
INDIABULLS - Indiabulls Financial Services Limited
RCOM - Reliance Communications Limited
DENABANK - Dena Bank

Technical Analysis for 25th August 2008

BSE-SENSEX - Major Support - 14321, 14268, 14215, 14122, 14029, 13883, 13737, 13591
BSE-SENSEX - Major Resistance - 14414, 14507, 14560, 14613, 14759, 14905, 15051, 15197

NSE-NIFTY - Major Support - 4304, 4287, 4271, 4243, 4215, 4170, 4126, 4081
NSE-NIFTY - Major Resistance - 4332, 4360, 4376, 4393, 4437, 4482, 4526, 4571

Last Week clearly told u all that for upward direction, Index has to cross 15093 and nifty future has to cross 4547……. Index and nifty future both failed to cross 15093 and 4547 respectively. For down side we have told u that , If Index breaks 14577 then it may touch 14210 and if nifty future breaks 4404 then it may touch 4327……. What happened then…. Below 14577 Index had touched a low of 14136.86 and below 4404 nifty future had touched a low of 4252.35.

In a early last week, we had seen some upside till 14825, in that some of our recommended stocks has performed well but not sustain at higher level. Satyam had touched 423 from 411, Tisco had touched 632 from 620, TCS moved to 847 from 837, Century moved to 517 from 499, Guj NRE moved to 110 from 104……

Friday, Late night , Crude had again fall down from higher level and closed near 114.78 level from 122 level. Now in near term it might touch 108 level. Dow jones closed to +197.85 points and nasdaq closed to +34.33 points. Monday opening will be good. Let us see if it sustains at higher level or not. At lower level buying and short covering may emerge as august future ending is near. In Coming Days small caps likely to outperform the index. Long term players may use dips as opportunities to buy in phased manner. This is the right time to build the best portfolio which can gives you the superb and safe returns in coming 2 years.

Above 14678 it may touch 14827,15095…..Below 14136 it may touch 14032,13926……..
Above 4437 it may touch 4488,4526…..Below 4252 it may touch 4198,4146………
BSE Index Prediction for Week (25.08.08 To 29.08.08) :-
Index	Closing Price	Support	Stoploss	Target 1	Target 2	Target 3
BSE	14401.49	14136	14032	14678	14827	15095
Nifty Future's Prediction for Week (25.08.08 To 29.08.08):-
Index	Closing Price	Support	Stoploss	Target 1	Target 2	Target 3
Nifty	4324.10	4252	4198	4437	4488	4526
Nifty Future's Hot Scripts for Week (25.08.08 To 29.08.08) :-
Sr.No.	Company Name	Closing Price	Support	Stoploss	Target 1	Target 2
1	Century Textile	473.70	466	459	499	523
2	DCB	51.40	50	48	56	61
3	Rel Infra	984.00	970	959	1013	1057
4	Escorts	85.90	83	81	90	96
5	Tata Tea	725.65	716	709	744	767
Weekly Trading's Hot Scripts for Week (25.08.08 To 29.08.08) :-
Sr.No.	Company Name	Closing Price	Support	Stoploss	Target 1	Target 2
1	Chambal Fert.	78.95	77	75	83	88
2	Sesagoa	155.15	153	150	162	168
3	IFCI	45.05	43.50	42	48	52
4	L & T	2618.60	2600	2587	2659	2696
5	Balrampur Chini	95.40	94	92	99	103
For Delivery Based Investment Hot Midcaps/Smallcaps for Week (25.08.08 To 29.08.08) :-
Sr.No.	Company Name	BSE Code	Closing Price	Stoploss	Target 1	Target 2
1	MRPL	500109	66.35	62.00	77	86
2	Deccan Aviation	532747	80.40	75.00	88	96
3	Hind.Oil	500186	125.90	120.00	134	142
4	Aftek Infosys	530707	39.25	36.00	45	53
5	Surya Pharma	532516	102.40	96.00	109	122
6	Harisson	500467	101.95	97.00	108	119
7	ASCL	532853	39.25	36.00	49	61
8	Salzer Electronics	517059	66.90	62.00	77	93
9	Hotel Leela	500193	32.50	29.00	40	47
10	Nutraplus	524764	8.96	7.00	13	16
11	Super Spinning	521180	9.93	7.00	13	17
12	Timex	500414	20.30	18.00	24	26
13	Invicta	523844	11.05	9.00	13	16
14	TFL	532812	19.30	16.00	26	32
15	Assam Co.	500024	25.45	23.00	28	31

See the Power of Astrological calculation we will see big fall in Indian Stock Market.

Major Crisis in Market during following days. Market would be volatile & show significant ups and down. You may use these dates at your own risk.

26th Sept 2008
28th Oct 2008
14th Nov 2008
29th Nov 2008
1st Dec 2008

Sensex Technical View :
Sensex has made a low of 14136 which is closer to the 50 % retracement ( 14050 ). On the upside need to watch 14800-15100 zone for extreme short term . Sensex can continue to move sluggishly for quite some time as discussed in previous posts so let market decide and then act and look for stock specific investments.

Market Observations and Thoughts :
GHCL seems to be one of the buzzers on the rumours ckt and can potentially move up sharply if something really good comes in ! and technically also is in a good position . Risk remains ! with news always though ...

Observing data on BSE and NSE regularly has always lot of things which may not seem to be right or weird ! . Remember the earliest one CNBC techie banned :) ... Just checked out something interesting in SEL Mfg . CHECK INSIDER TRADES . Stock has lost 60 % in no time .Find a bit more it will become interesting :) is all i can say then takin names or details.

Crude declines from 122 odd the zone of 122-124 which i was looking at. Gold pulls back from close to 840. Just a thought which comes to the mind is -- We did pick the big fall from 140 to 112 on crude but is it that there is more downside or a big bear market unfolding in it ! . Is it a major top . Will need to see the long term charts to come up with more details but technical trackers of crude can provide the inputs. Gold also seems in a difficult stage.

Stocks to watchout for :

SAIL has a minor resistance around 155-158 if crosses could test 170 too.

Kilitch Drugs ( wait for brkout ) , Coromandel fert ( flag brkout n move lil dip be used to buy )
GHCL ( speculative ) , Tinplate ( about to bounce up ) look interesting in the small cap segment .

Some other speculative ones would be Ennore coke and Lokesh machines for extreme short term but risky ones.

Today i m uploading 2 charts 1 for EOD spot, and another for 15 mins intraday nifty fut.

If u look at the spot chart, it shows that nifty is following the trendlines, and since it got supported by the lower trendline and pulled back, it suggest that nifty is bullish and will go on to hit 4530 levels where the black line meets the red line.

If this trend follows, one can short heavily around those levels, i will guide you on that when it happens.

As of now, one can remain long with SL below 4250 spot for a tgt of arnd 4500 spot.

Now for intraday, nifty fut has support at 4310 fut levels, unless that is broken, nifty will be strng.

sustaining above 4355, nifty can hit 4380-4411 fut.

4355 fut will be an imp level for the day, might see some weakness below it.

HOWEVER I DONT EXPECT NIFTY TO BREAK 4303FOR THE DAY

Market conditions are not favorable for breakout trades.There is no follow through for the breakouts and new leadership is not emerging.Lack of institutional support is a major concern.Core project is one among the very few recent breakouts that worked.view the above chart.Core gave me a lot of money last year.View the chart below.Blue arrows are SMART breakouts. Click on the charts to enlarge

Click the charts to get maximized

In Physics there is a concept called Escape Velocity , It is commonly described as the speed

needed to "break free" from a gravitational field.If an object attains escape velocity, but is not

directed straight away from the planet, then it will follow a curved path. This is the concept used

in rockets to make it free from gravitational Field and to revolve around the orbit. And Now in

case of nifty the gravitational pull is downwards as its closed below 20 day EMA.

Currently nifty is facing a downward gravitational force(remember if a ball thrown upwards

then the ball will take a curve path and fell down because of gravitatinal force. And it

will falls to the ground due to lack of Escape velovity).So nifty now needs an escape velocity

that is a force which needs to keep nifty above 4327 forever. The predicted nifty escape velocity is

4385 ie (>20 day EMA) to put nifty once again in its orbit. In any case if nifty closes below 4385

then once again nifty is poised to the gravitational pull and the acceleration is going to be strong

further to reach its ground soon.

In Simple terms Market has to remain close above 4385 by tommorow. Some of the stocks that

can offer the escape velocity to nifty :

Top Gears in Nifty:

RANBAXY,RELIANCE,BHEL,INFY,HDFC,ONGC: Still these counters are not giving up as its candle are

still manage to stay above 20 day EMA. Strong Escape Velocity may come up from these counter.

And Ranbaxy,HDFC,BHEL looks the most bullish among them. And Remember ranbaxy already

achieves its escape velocity(>20 day EMA).

Slow Gears in Nifty

SBI,ICICI Larsen & Tourbo, DLF : Situation is exactly the same as of Nifty. Candles closed well below

20day EMA. If these counters closed positive on coming monday(25th, Aug,2008) then chance of

formation of bullish morning star - a bullish trend revesal pattern. So a positive close in these

counter can offer further escape velocity to nifty. In case of SBI almost a DOJI symbol is formed

so any positive close will bring a trend reversal - Bullish morning doji pattern in this counter.

Dead and Broken Gears in Nifty

ACC,RCOM,TATA STEEL : Tradning well below 20day EMA for couple of days and considered to be

the weakest stocks among the nifty constituents.

Conclusion

Almost all the stocks in the nifty are well below the oversold in term of stocastic Indicator, showing

a sparking positive momentum. This spark may be enough to keep the nifty rocket to moving into its

orbit once again. Just hope for the spark to give some escape velocity to the nifty rocket.


As said and expected the markets bounced from near to 4250 levels on back of huge call writing at 4500 levels and puts at 4200 shedding open interest with negative rsi.
Technically the markets looks poised for a bounce and some upward movement is likely to be witnessed.
However in the f/o expiry week , the markets are likely to be highest volatile with bouts of deceptiness.
Structurally the markets are still undecided and needs some time to find strong supports for an upmove.
Moreover the structure of the markets is of the suggestion that the markets can move up from here following the crucial supports at 14005 and 4205.
The strategy should be to buy dips and stay long ,keeping in mind the crucial supports
The supports for the nifty is at 4205 levels and resistance at 4375 levels
The supports for the sensex is at 14050 levels and resistance at 14500 levels


Stocks to watch

With the conjunction of Saturn and sun , with Jupiter changing house , the markets are likely to be very volatile.

Sugar sector , textiles sector- century , Bombay rayon , dyeing , nbfc sector – idfc , rolta , titan , akruti nirman will outperform the markets


Analysis for the week ahead. I will present a bigger picture look at things after we look at the charts.

Starting with the daily. Some comments on the chart - open in new window to view. Here we can see the MACD is signalling danger. Last time it happened, we had a major downslide. Will we do the same this time? We need to watch this week very closely.



Next the weekly chart. Here the stochastics is trying to crossover to the downside. Last times it happened resulted in major mayhem in the markets. Break 4240 and its probably over for the market - Under this 4150 is also strong support but 4240 might be more important as its last weeks panic low.

Daily log chart shown here to present a different look at things. Note how we are back in the downtrending channel on this one.

Lastly hourly charts with comments on it. Nothing more to say here.

Overall charts and market are showing some confusing views. Prefer to sit out in cases like this. I am looking to build short positions at higher levels maybe starting today. So many strong resisitances at higher levels. This week being expiry week might see a lot of index management by the market makers. Might be a good idea to sit out...Daytrading can be done though. I have given some key nos in the charts above. Play in between these levels.

Okay now coming to the bigger picture.

Lets face it folks. We are in a major economic upheaval. We need to pay attention to the global picture also. Being in the US of A, I see things here and I am convinced beyond a doubt that we are probably in a very serious economic predicament - There are no jobs..Jobs are being cut as it is...People have stopped buying cars and houses...Overall tighening of spending. Flashback to 6 months back and it was very very different. People were upgrading their cars, their houses and so on...Its funny what a few months can do. The last few years saw people spending without any restriction money that they did not even have in the first place. Easy credit and uncontrolled spending is what lead to all of this. So pain is being faced right now and may continue for more time than what people are expecting.

Come home to India and as I said some time back, the PE growth in our markets have been quite pathetic over the past year. 8% or so. I mean that is really bad. We factor in inflation and the real growth becomes even more pathetic. We are in for some dire times folks. Be careful with your money.

BUT as they say, its always darkest before the dawn and the same is applicable here. Markets are a leading economic indicator. We will begin to recover before the broader economy. When?

I expect we shall see a major downturn over next few weeks...maybe a month and then go toward new lows....The next new low at maybe 3600-3400 levels will be a fantastic buying opportunity for the longer term. Again note that the levels and timeframes here are more of speculation that anything else. Take it with huge handfuls of salt :)

Its my longer term view on the markets and economy and so will be continuously updating them...I think we shall make a significant bottom within next 3-4 months...Then a big upmove into March of next year...More decline/consolidation after that...But let us see how the next few months play out first.

IOLN is in a good uptrend. After a small pause, the stock has resumed its uptrend. Let us do an imaginary trade. Bought at Fridays close @100. Equity Rs.100,000, Risk 2% = Rs 2000, Stop Loss 8%. Position size is Risk / Stop or 2000/8% or Rs 25000/. Entry Price = Rs 100, How many shares can we buy ? 25000/100 or we can buy 250 shares. Our stop is at Rs 92/- So if the stop gets hit, we lose 250*8=2000 which is our equity risk.

PS: If the stock goes up to 110, where is your (trailing ) stop? @ 101.20. Work it out.

The Indian market bounces from lower levels and managed to close in green zone . For coming session we can witness more upsides toward 4370-4400 levels .On the lower side 4280-4264 will act support zone .

Last week nifty closed with loss of 2.33% on low volume ,On the daily chart nifty had kiss 100 SMA and reverse from it and taken the support of 50 SMA as shown on chart .For coming session if nifty cross 4345 we can test 4410-4423 levels on upper side 4450 will act strong resistances on the lower side 4287-4234 will act support zone. Key level for the week 4345

BUYINFOSYS ABOVE 1702 TGT 1727>1751 STOPLOSS 1687

BUY SAIL ABOVE151 TGT 155 >159 STOPLOSS 149
BUY RANBAXY ABOVE 522 TGT 529 >534 STOPLOSS 518.50

SELL SATYAM BELOW 386TGT 381>377STOPLOSS 389

Hindalco Inds
cmp: Rs 134.55
target price: Rs 182

Enam Securities has assigned an "underperformer" ratings to Hindalco as it feels the company's proposed rights issue is diluting the growth of the company. Hindalco is planning a rights issuance of three shares for seven existing shares at Rs 96 per share. "This is in contrast to the earlier envisaged one share for every three shares around Rs 120 per share and is round 30% discount to FY08 book value per share. The issuance hints at a sense of urgency for fund raising, given tight capital market conditions, to retire $3-billion bridge debt that expires in November 2008," the Enam note to clients said. "We reduce our FY09 and FY10 earnings per share estimate to Rs 17.5 (Rs 19.9 earlier) and Rs 22.7 (Rs 24.4 earlier), respectively, to reflect more-than-anticipated rights dilution at lower price and attendant net interest impact," the note added.

Friday was a reasonable day for the Nifty with it gaining about a percent from the closing price of Thursday. The American markets and the European markets were much better too on Friday than the day before. There happens to be good news on the crude front too. After reaching highs of $121.50 and thereabouts on the previous day, crude slipped to $114.75 on Friday. Looking at the global cues, it does seem like Monday is going to good for the Indian markets too. However, there were some negatives too. Not all seems to be going hunky dory for India as far as the nuclear deal is concerned. The NSG has agreed to meet on Sep 4, 2008, and in the meantime, will suggest changes to the India specific clauses of the agreement. Inflation increased still further to 12.63% for the week ended Aug 9, 2008.

Seen above is the daily chart of Nifty. As can be seen, the last four candles have been alternating between blue and red. Simply speaking, one day has been ending in the red while the next has been closing in the green. This alternation clearly shows that the market is now becoming uncertain about its next move and is now probably entering a sideways phase with the range as shown i.e. between 4200 and 4650. Since the markets are in a range, nothing much can be said as of now till this range is broken either on the upside or on the downside.

The chart above is the weekly chart of Nifty; we have a slightly bullish outlook from the weekly candle. Nifty is desperately trying to break away from the falling channel resistance. The 50% of the recent swing A to B was tested twice earlier with Price almost making multiple tops above that level but failing to hold above it. The last weekly candle suggestive of a Hammer, and yet another attempt to seriously break the falling trend line and close above it. We have two very clear levels marked for trading on the weekly chart as of now (see the two pink horizontal lines) 4245 and 4647, a trading range! Weekly closing needs to be above 4370 to take on 4421/4452 or anything higher if you fancy. On the other hand any close below 4250 will lead to an all important test of 4150, the last make or break level according to me.

Now we shift our attention to the Daily chart below; we have our HL intact till now. The price has taken support on the trend line coupled with the support from the 50 periods MA. The overhead resistance lays in the form of the long term falling trend line (drawn from Jan highs) and the 20 periods MA at approx 4415 level (remember which just spoke about 4421 while discussing weekly chart above!). The MACD lines have given a bearish crossover and the MACD histogram is down under, the ADX is still lackluster and the +/- DI lines are converging.

This brings us to the hourly time frame. Though there is a short term bullish divergence at play on the hourly chart but it’s more of a Bears delight. The Price is desperately trying to close above the falling 20 periods EMA. We have had the 20/50 EMA crossover, we have had the 20/200 EMA crossover and now all we need is 50/200 EMA crossover on the hourly to real start thinking BEAR! We have a LL and LH pattern in place. The hourly chart suggests strong resistance at 4370/4400 levels.

This is all very confusing to me; I am of a view that if you are long then your conservative stops should be at 4200 or more aggressive at 4250. Any Gap Up opening on Monday, if fails to sustain above 4370, should be used as a shorting opportunity with a stop above 4390/95. For me, for now, the path of least resistance is DOWN!

MARKET WILL BE VOLATILE DUE TO EXPIRY

Bse Sensex(14401.50) and Nifty(4327.45) closed approximately 2.3% down each last week . Inflation was at 12.63 v/s 12.44 and Crude rose to 121 $. Market will take cue from Crude oil prices and developments on nuclear deal..Support for Sensex is 14100 and for Nifty 4230 Resistance level of for Sensex 14750 and 4430 for Nifty. Selective buying will be visible at every decline.
Nifty put-call ratio is 0.76 .Chamble Fertilizer sheded open interest while State Bank Of India saw addition in open interest.
Strategy for Future & Option players

1)RPL(160.85)-Lot Size-1675 shares
Buy One Call Of RPL September Month Strike Price 160@10.35 Rs
Sell One Call Of RPL September Month Strike Price 170@6.10 Rs.
Premium Paid=10.35*1675==17336.25 Rs.
Premium Received =6.10*1675==10217.50 Rs. .
Net Premium Paid=17336.25-10217.50=7118.75 Rs
Maximum Profit=170-160=10*1675=16750-7118.75=9631.25 Rs..
Maximum Loss=7118.25 Rs.
Break even point=164.25

2)SAIL Future(148.85)-Lot Size-1350 shares
Buy One Lot SAIL September Future@148.85 Rs.
Sell Call Option SAIL September Month Strike Price 160@5.00 Rs.
Premium Received=5.00*1350=6750.00 Rs.
Maximum Profit=160.00-148.85=11.15+5.00=16.15*1350=21,802.50 Rs.
Maximum Loss=Unlimited.

Trading Idea
1)RCOM(406.45)Buy this decline and trade.
2)RANBAXY(522.55)Buy this stock in decline and trade.

NF ABV 4325 SL 4295 T 4360/95 NF BEL 4280 SL 4310 T 4240/20 BHEL ABV1725 SL 1690 T 1800 SAIL ABV150 SL 148 T 156 HDFC ABV1195 SL 1180 T 1240

WEEKLY REPORT CARD
(25th to 29th aug 2008)

Hello friends, hope all are fine. If u are reading our levels on weekly report card and messages on mobile then u have seen how nifty fu moves with our levels-many a times we have told that below 4385 nifty fu will fall to 4253 and see on Friday nifty fu fall to exactly 4253 and it revert back and both index close positive despite of rising inflation and concern over the rates. Those who have join our paid service “BEST OF LOTS” we have send messages to buy September month 4300 call options between 155-160 levels and those who have join our free service on messenger know that we have taken long positions in nifty fu from 4270 and till we hold all positions.


Lest come to general analysis and derivative analysis
.
This week is the last week of fno expiry so we may see bit of short covering –more in banking and realty space as both sector has been hard hit by traders.

On the last trading day we have seen that huge open interest and long positions has been build up in 4300 call options and short positions in 4400 call options –so that indicates that support at 4300 and resistance at 4400 –due to global market recovery we have also gap up opening on Monday and if nifty fu cross and close above the 4400 levels then we will have more short covering in future side as well as in the option side.

Apart from that put-call ration is below 1 that indicates that Indian market is trading in oversold zone –so that will also help to keep the indices upside with last week of fno expiry and good global cues.

While on the other side astrology suggests that we should be cautious ahead –it suggest any time we may see again down side in this week.

In this week in India as well usa GDP data announcement for the quarter –so this week don’t look to only technical and derivative numbers we have watch all other data as well.

NIFTY FU-nifty fu revert back from 4253 –in this case In our technical study we call “ FALIOUR OF FALLING WEDGE-TRENDLINE” this will give power to indices. watch closely following levels.

Resistance are-4460-4513-4600-4654

Support at 4253 is support like iron if it breaks then will see free fall and index will slide to 4161-4050-400.

SENSEX-above 14511 index can flare to 15128 and support at 13632.

TABLE OF IMPORTANT LEVELS

INDEX RESISTANCE SUPPORT
Nifty fu 4460 4253
4513 4191
4600 4161
Sensex 14511 13632
15128


TREND ANALYSIS TABLE

INDEX DAILY CHART WEEKLY CHART
Nifty fu Bearish Mild bullish
Sensex Bearish Mild bullish


FUTURE AND OPTION STRATEGY-

-One can take long position in nifty fu and stop loss will be 4253
-Buy September month 4300 call option.

SHORT TERM DELIVERY BASE-

RANBAXY-technical suggest chart in strong zone as well momentum indicators also showing strengths-54% rollover in September series is good for the stock –one can consider short term delivery of the stock with stop loss of 508 on closing basis and target are 533-538 and above that levels it can also test 563.

SHIPPING CORPORATION-in the last two week fall in Baltic index we have seen huge short in all shipping stock –now on weekly charts it form’s strong reversal pattern –huge short positions is open so this will help to move stock up as trader will start short covering one can consider long positions in cash with stop loss of 210 on closing basis and target are 223 above that it can test 231-239 kind of levels.

DAY TARDING SCRIPS FOR MONDAY-

MARUTI-once start trading above 635 buys with stop loss of 625 and target between 643-650 and even it can test 655.

HIND ZINC-keep stop loss of 570 and target will 588-595.

MAHINDRA AND MAHINDRA-keep stop loss below 545 and take long position target is 588 and even 564.

STEEL AUTHORITY-huge open interest and long positions build up one can buy with stop loss of 145 and target is 153.

INTRADAY TRADING RANGE OF THE STOCKS

STOCK UP LIMIT DOWN LIMIT
Maruti 650 617
Hind zinc 595 572
Mahindra 564 540
Sail 153 145

GLOBAL STOCK MARKET-

Dow jones-on the statemnt of Ben bernaki and buffett index rise by nearly 200 points-major resistance at 11670 two close above will take to 12000-support at 11259.

NASDAQ-resistance at 2439 and support at 2390.

Hang sang-don’t hold short positions.

COMMODITY ANALYSIS-

Mcx crudoil-on 24th aug Olympic will be end- all refinery of china will open and this will create demand of crude oil to refine so be careful in this case –if crude oil close above 4671 for this month then it will fire n fire.

IMPORTANT ANNOUNCEMENT FROM USA IN THIS WEEK.


DATE ANNOUNCEMENT
25th Existing home sales data
26th New home sales and consumer confidence data
28th Quarter GDP
29th Personal income data