Will wedge be broken today? Aug 13, 2008
Posted: 12 Aug 2008 09:40 PM CDT
NIFTY yesterday took support at the lower trendline of the rising wedge. Today, there is a possibility that we may break down from the wedge which gives us a first target around 4400. Hold shorts...n ride the trend...
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Here we are again at very crucial levels.. Say it major Indices (DOW / NASDAQ) or pregnant Commodities (OIL, GOLD)…
Major Indices of a few Emerging markets as well as DOW seems to be poised at crucial juncture… Moreover, weekly chart for the same aren’t quite encouraging… In current pullback none of them have been able to clear 50 week average, as a matter of fact many like Nikkei, Shangai, Strait Times, Taiwan, DAX hasn’t even tested that which indicates we are in no way out of woods globally… exception for those are Sensex, Russell 2000, S&P Midcap Index, S&P Smallcap Index, DOW Composite & Nasdaq… Nasdaq has been sheer outperformer followed my small-cap and mid-cap indices….
Time has come to wait and watch the move on break of the triangle / wedge on either side for a conclusive action… Till then people who have been unable to generate cash at higher levels should generate cash and wait for decisive breakout / breakdown…
On the commodities front we are approaching crucial times in OIL and GOLD… Oil as mentioned earlier has been approaching 110 levels… and gold has broken major support of 850 and sustaining way below it… Support levels for that are given in charts itself…
Charts of few are shown below..
DOW (^DJIA):
Dow on Daily chart has been sustaining just below 50% levels.. and has been forming triangle which is generally considered as continuation pattern… But it would be be safe to wait and watch it go cross 11900-11950 region to go long aggressively in front liners… Till then generate cash and unless it breaks down below 11350 can see stock specific action.. and trade them with extremely tight stop losses…
IDEXX Labs was given few days back on Investment Super Growth (our google group).. moving slowly and steadily..
Keep an eye on C R Bard (BCR).. should see momentum above 95.. Stoploss 92
NASDAQ (probably one of the strongest amongst the major indices.. but lacks support from others… at trendline resistance) :
NYSE:
OIL:
GOLD:
Finally, Indian markets too are at the similar stance.. so would rather follow wait and watch rather then a trap… Generate cash at current level and on every rise now…
Have a great day..
Introduction of futures and options contracts on 39 additional individual securities
With reference to circulars no NSE/F&O/0014/2001 dated June 29, 2001, NSE/F&O/0027/2001 dated November 07, 2001, SEBI circular SMDRP/DNPD/CIR -26/2004/07/16 dated July 16, 2004, and approval received from SEBI, members are hereby notified that the following 39 additional securities will be available for trading in F&O with effect from August 21, 2008:
| Sr No | Symbol | Security Name |
| 1 | ABGSHIP | ABG SHIPYARD LTD |
| 2 | AKRUTI | AKRUTI CITY LIMITED |
| 3 | ASIANPAINT | ASIAN PAINTS LIMITED |
| 4 | BALAJITELE | BALAJI TELEFILMS LIMITED. |
| 5 | CONCOR | CONTAINER CORP OF IND LTD |
| 6 | COREPROTEC | CORE PROJ. & TECH. LTD. |
| 7 | DCHL | DECCAN CHRONICLE HOLD LTD |
| 8 | DISHTV | DISH TV INDIA LTD. |
| 9 | EVERONN | EVERONN SYSTEMS IND. LTD |
| 10 | FSL | FIRSTSOURCE SOLU. LTD. |
| 11 | GSPL | GUJARAT STATE PETRO LTD |
| 12 | GTLINFRA | GTL INFRA.LTD |
| 13 | GVKPIL | GVK POW. & INFRA LTD. |
| 14 | HCL-INSYS | HCL INFOSYSTEMS LTD |
| 15 | IBREALEST | INDIABULLS REAL EST. LTD |
| 16 | ICSA | ICSA ( |
| 17 | KLGSYSTEL | KLG SYSTEL LTD. |
| 18 | KSOILS | K S OILS LIMITED |
| 19 | MIC | MIC ELECTRONICS LIMITED |
| 20 | MINDTREE | MINDTREE LIMITED |
| 21 | MLL | MERCATOR LINES LIMITED |
| 22 | MONNETISPA | MONNET ISPAT LTD |
| 23 | MRF | MRF LTD |
| 24 | NBVENTURES | NAVA BHARAT VENTURES LIMI |
| 25 | NOIDATOLL | NOIDA TOLL BRIDGE CO LTD |
| 26 | OPTOCIRCUI | OPTO CIRCUITS (I) LTD. |
| 27 | ORBITCORP | ORBIT CORP. LTD. |
| 28 | PRISMCEM | PRISM CEMENTS LTD |
| 29 | PTC | PTC INDIA LIMITED |
| 30 | RIIL | RELIANCE INDUSTRIAL INFRASTRUCTU LTD |
| 31 | SINTEX | SINTEX INDUSTRIES LTD |
| 32 | SREINTFIN | SREI INFRASTRUCTURE FINAN |
| 33 | THERMAX | THERMAX LTD |
| 34 | TORNTPOWER | TORRENT POWER LTD |
| 35 | TV-18 | TV18 INDIA LIMITED |
| 36 | UCOBANK | UCO BANK |
| 37 | UTVSOF | UTV SOFT. COMM. LTD. |
| 38 | VOLTAMP | VOLTAMP TRANSFORMERS LTD |
| 39 | WALCHANNAG | WALCHANDNAGAR INDUSTRIES |
RELIANCE has been showing good strength for the past few days and has pierced through the resistance at 2350 today but could not close above that level. In the coming days if it closes above 2350 it would confirm it is headed for 2450 and 2600 in short and medium term.
Sensex Technical View :Sensex has not been able to reach the tgt zone of 15800 and has taen a pullback from 15580 which is the 61 % retracement from 17500 top. 61 % frm 17735 comes to 15750-15800. As seen in yesterdays post and now today that there are lots of resistances placed in the zone of 15500-15800 and thats why the view has been to book profits in long term buying done at lower levels.
The pattern on Sensex and Nifty is a rising wedge pattern which if broken can lead to a dip and the indices have seen dips after this patterns. 14950 and 15800 are the levels to watch on either side to trigger a buy or sell till then the view would be to wait and watch and be strict with stops on trades.
Stocks to watchout for :
Many of the trailing stoplosses were triggered in open trades and booked in cost or minor losses. Strategy is now to wait and watch for fresh trades. Investors can wait with the cash generated.
Aban Lloyd has broken below 2400 and given a weak signal. Sustaining below 2350-2400 can take the stoc to 2000-2200.
Crompton greaves 275 is a level to watch.
As said and expected markets reacted from the stiff zones of 4650 and retested 4550 levels.
On the 60 hema and 30 hema moving doji the markets have created a clustered pattern which suggests some more downsides.
Technically the markets are poised for some more downsides with volatility.
However after initial weakness and dip buying is likely to emerge in later hours
The supports for the nifty is at 4425 levels and resistance at 4565 levels
The supports for the sensex is at 15025 levels and resistance at 15350 levels
Stocks to watch
Mundhra port
Gail
Positional calls
Idfc 110 ca – gets double in 2 days
Gmr 105 ca – bought gmr 105 call option
The Indian market opened on higher note but not able to sustain at higher levels and market drifted down in red zone. For the coming session we can see more selling pressure below 4535 it can test 4494 on the other side 4580-4609 will act as resistances zone .
STOCK OF THE DAY :
NAME: GSPL ABOVE 61.6
SL: 60.5
TRGT:62.4--62.8--63.5
REVISED SL TO : 61 IF 62.2 IS ACHVD.
Everon System : (523.70) Buy EVERONN above 532 for a short term target of 560 and 605, stoploss 505.
MIC Electronic : (128.40) Buy MIC above 129 for a target of 142, if cross 142 then goes up to 170 in very short time, stoploss 116.
PTC : (85.45) Buy PTC above 87 for a short term target of 96 and 111, stoploss 77.
Noida Toll : (42.55) Buy NOIDATOLL above 43 for a target of 48 if cross 48 then next target is 56, stoploss 36.
ICSA : (349.05) Buy ICSA above 347 for a short term target of 400, stoploss 325.
ABG Shipyard : (373.05) Buy ABGSHIP above 378 for a short term target of 411, stoploss 360.
Opto Circuit : (350.70) Buy OPTOCIRCUT above 348 for a target of 380 in short term, stoploss 335.
Sensex : (15212.13) Today Sensex face resistance at 15305, if cross 15305 then goes up to 15487 and 15762. Sensex find support at 15030 below 15030 its goes down up to 14848.
Nifty : (4552.25) Today Nifty face resistance at 4576, if cross 4576 then goes up to 4627 and 4702. Nifty find support at 4501 below 4501 its goes down up to 4450.
Buy Power Finance Corporation - Target 162 - Within 2 Months
Buy TV 18 - Target 278 - Within 2 Months
The Company would like to reiterate that as and when the open offer proposal is being considered, all statutory requirements in this regard will be complied with.
| FDC LTD. (531599) - 12 Aug. Price: 34.50 |
| FDC LTD. does not show any clear trend. The stock has received a positive signal from the moving average indicator, thus signaling a continued rise. The stock is testing the support at 33.70, which may give a postive reaction. Volume tops and volume bottoms correspond well with tops and bottoms in the price. This strengthens the stock. The stock is overall assessed as technically positive for the medium long term. |
| The medium long term: Positive candidate |
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