It's a done deal
Sensex : (14483.83) Today Sensex face resistance at14607, if cross 14607 then goes up to 14776 and 15069. Sensexfind support at 14314, if 14314 break then goes down up to 14145.
Nifty : (4352.30) Today Nifty face resistance at 4376, if cross4376 then goes up to 4424 and 4500. Nifty find support at 4302, if break 4302 then fall up to 4255.
NIFTY ( daily, three months)I have been studying market charts for a while now and writing my thoughts here for almost two years. In this process I have learnt some elementary principles. I am quite certain that mechanical trading systems are not the answer to profits. They work well only in strong trending markets. While charts give a history of stock prices, they do not look beyond. Mechanical interpretation of charts is bound to mislead us unless we co-relate news and current events. Software based trading systems should be used to identify set ups, screen stocks, compare trending/trading markets. After that the interpretation must by human eye and brain.One may ask a question here. Will human emotion interfere here in the interpretation? Absolutely no. If we are convinced about our trading system parameters then human emotions would not interfere. If a chart indicates that the stock is close to a resistance level and there is good news flow that day then shorts are bound to cover taking the stock prices above the resistance. This would now create a new trading range for the stock prices. Similar principle if the stock is trading close to a support level and bad news trickles in. It would then break the support and enter lower trading range.
BHEL : (1732.25) Buy BHEL above 1740 for a target of 1760 and 1794, if cross 1794 with volume then goes up to 1900. Stoploss at 1710.
LT : (2616.05) Buy LT above 2625 for a target of 2642 and 2677, if cross 2677 then next target is 2745. Stoploss at 2605.
ICICI BANK : (686.75) Buy ICICIBANK above 691 for a target of 723, if cross 723 with volume then next target is 789. Stoploss at 675.
SBI : (1519.85) Buy SBI above 1520 for a target of 1548 and 1576, if cross 1576 then next target is 1625. Stoploss at 1490.
Positive Nuclear deal news will result in gap up opening
On friday it was a selling day as nifty made a low of 4329 and just saved 4320 support.Now positive news of nuclear deal will result in higher opening today.So, market is very bullish for today and will be interesting to see where it will reverse back and i think the fall of nifty this time around in coming day's might be severe.Let nifty jump and see how it reacts at strong resistances in coming day's.On global front, The Dow Jones industrial average was up 32.73 to close at 11,220.96 last friday and Light, sweet crude for October delivery fell $1.66 to settle at $106.23 a barrel Friday on the New York Mercantile Exchange -- its lowest close since early April.In an interesting development U.S Government has decided to take over mortgage financiers Fannie Mae and Freddie Mac and impact of this take over may be felt in next few day's seeing how market will react to this.For today, all global cues are positive and indian market is also looking very explosive for the day and closing today will also be of much importance for future trend.For today, nifty will face resistance at 4440 straight and then 4535-a very strong resistance which has to be watched and some selling might come at resistances and supports will be at 4440 and 4380 on downside.
Stock watch for the day:
DLF (494): Buy this with stop loss 486 for target 508-520
"It doesn't make sense for both the bank and its arm to sell the same products. We plan to either merge or sell IHFL," a bank official said.
The bank's board is likely to take a decision on the matter by the end of March next year, the official said. IDBI Bank took over the erstwhile Tata Home Finance and renamed it as IHFL. IHFL has a home loan portfolio of above Rs 2,700 crore with a presence in 18 centres. PTI
India gets Nuclear Suppliers Group waiver:
MARKETS TO REJOICE
After all the markets are full of surprises and after falling by 415 points and every one thought that the end of the world has come now comes a bolt from the blue. The waiver from the NSG will see the markets in a good mood.
Even the Asian Markets and the US Markets have fallen considerably last week and have no other option but to look up on Monday.
In a major success for India's nuclear ambitions, the Nuclear Suppliers Group (NSG) allowed a crucial waiver that will enable India to carry out nuclear commerce, ending 34 years of isolation enforced in the wake of the 1974 Pokharan nuclear tests.
WHAT IS NSG:
The Nuclear Supplier Group consisting of 35 nations was formed against India when it exploded the first nuclear device. Since then every one saw to that, we do not get any nuclear reactors or fuel to run even the ones we have, this isolation has lasted for over 34 years. Now the same countries have agreed to supply nuclear relataed products to India.
The opposition parties are against this deal because they feel we may not be able to test a nuclear device. What we have gained is considerable as atleast now we can start our 16 nuclear reactors, which are lying idle for lack of uranium, which the NSG have refused to supply. The Tarapur reactor can generate electricity for ninety paise a unit against Rs.3.50 for the energy produced from conventional source.
The waiver by the NSG has also to be seen by the way how many have worked behind the scene and the out come was a nail biting finish with the waiver coming out at early morning 1 Am Vienna time. Until the end, the American President Bush has been on the phone line with some of the national heads. It was his call made China to reconsider made the final diffference. Hence, what we achieved at Vienna has to be seen as a historical victory for India and now thre will be a rush of countries coming to do nuclear business worth over 10 billion dollars. We should be happy that we have friendly countries who supported us and believed in our standings.
WHO ARE THE BENEFICIARIES:
It will give an opportunity to Indian nuclear ancillary industries to become global and India could even become a manufacturing hub, There will be so many whispers like who is going to get the benefits and there can be scamble to buy a few stocks that are benefitted by this great news. If these stocks go up it will be just a temporary phenomenon. The benefits are in fact for long term.
There are several cos like L&T, NTPC, Hindustan Construction, KSB Pumps, Tata Electric, Rolta Etc. Etc who can be benefitted. One thing is certain that everything is for the long term. For example, Rolta may be able get work from outside India for nulear plant designing.
The shares, which will get the immediate attention of the investors, will be the foreign companies who have famous nulear plant suplying parents like: Areva T & D and Alstom Project.
Alstom Project: (BSE: 532309): It has fallen from a high of Rs.1100. to the CMP of Rs.396. Almost every Mutual Fund is holding this scrip. Expect the share to gradually rise once again.
In the case of Rolta (BSE: 500366 ) in fact a break out appeared on Thursday when the share touched Rs.342 but came down drastically on Friday when the market crashed to Rs.326.80 and this share should even other wise move up on Monday.
There are very good chances of this scrip rising by atleast another 10 to 20 points intra day on Monday.
KSB PUMPS: (BSE; 500249): The only manufacturer of centrifugal pumps for nuclear waste. The share has come down from a high of Rs.540 to the current levels of Rs.312. One can see that how the share has come sliding down in the one year chart of this co.
KSB Pumps net profit rises 113.88% in the June 2008 quarter
Net profit of KSB Pumps rose 113.88% to Rs 17.11 crore in the quarter ended June 2008 as against Rs 8.00 crore during the previous quarter ended June 2007.
As the Capital is Rs.17 Cr, the EPS for the full year can be anthing around Rs.40.
Sales rose 32.56% to Rs 149.00 crore in the quarter ended June 2008 as against Rs 112.40 crore during the previous quarter ended June 2007.
Even Punj Lloyd: It is also whispered to be a beneficiary. The share has come down from recent high of Rs.312 to Rs.297. If the markets improve, it may rise by another 10 points any time.
MARKET WHISPERS:
You have seen the way how JPT Securities and KLG Capital are hitting the uper circuits every day now it appears two more shares will join this band wagon. They are:
Oscar Investments :( BSE: 501179. Rs.289.50) .This is an investment co of Ranbaxy having several lakh shares of Ranbaxy plus land in New Deli.
SHARDUL SECURITIES: (BSE: 512393. Rs.90) details were given In A Flash No 101.
After a long time once, again accumulation of the scrip is seen in WI Shipyard at Rs.13.50
Petronet LNG is a good stock but it is important to keep an eye on important support and resistances for the stock and thus important levels are as listed below:(a) Support:58.9(b) Resistance: Rs 65-70(c) Stop Loss: 57.92. 2. Similarily Rohit Ferro(532731) is also a good stock and its support and resistances are as listed below:(a) Support: 106(b) Resistance: 136, 161(c) Stop loss: 104.9Subscribe Here.
SHORT TERM DELIVERY-
Buy voltas-stop loss 122 targets 133 close above 146.
Buy reliance ind - sl 2065 close above 2133 will fire to 2200-2222.
Buy j.p.associates - sl 160 targets 183.
MEDIMUM TERM DELIVERY
We are recommending two stock for 3-4 months delivery based we have come to know that some big names are accumulating two stock for good gains so we recommend to invest-maximum quantity 500 each of stock.
HENKAL INDIA (532671) Buy with target of 27.
SKM EGGS PRODUCTS(532143) Buy with target of 24.
Gremach Infrastructure(532836) Buy with Tgt 200+
Today Buy Calls
ICICI 700@26
RPL 160@5
NTPC 180@4
TATA STEEL 580@16
RCOM 400 @ 16
RELIANCE 2190@40
RELIANCE INFRA 1000@60
NIFTY
4600 @48 T 90
4500 @80 T 120
4400 @120 T 200
Gap open seen 170-200 points nifty , our nifty btst will rock today
BUY BANKS LIKE SBI, AXIS
BUY HCC IT WILL RUN LIKE HORSE
SELL HPCL,BPCL our stbt
Tech Mahindra may see action
Private equity firm Kohlberg Kravis Roberts & Co is reportedly eyeing BT Group's 31% stake in India's Tech Mahindra. The formal process of selling will begin in 10 days, the reports added.
Reliance Power has reportedly sought allocation of an additional coal block with total reserves of 100 million tonnes adjacent to its existing ones in Madhya Pradesh.
A stake in Firstsource Solutions, a leading business-process outsourcing company, has reportedly been put up for sale. Metavante, a US-based banking technology group, has appointed Goldman Sachs to find a buyer for its 20% holding in the Mumbai-listed company, the reports added. First-round bids are expected this month.
Wipro Technologies has reportedly put about 4%-5% of its workforce, about 2,400-3,000 employees, under the scanner for non-performance. While some would be given counselling to improve their performance, others would be asked to leave, the reports added.
Oil and Natural Gas Corporation (ONGC) reportedly plans to generate 1,000 megawatts worth of wind energy entailing an investment of Rs 6000 crore.
S Kumars Nationwide is reportedly set to buy an Italian shirt company for 75 million euros in a deal expected to be signed by the end September 2008. The funding for the proposed acquisition has been tied up.
Essel Propack has reportedly acquired 74% equity of Minneapolis based Medical Engineering and Design Inc, a supplier of specialized disposable medical devices, for cash. This acquisition was undertaken through its US subsidiary Tacpro Inc and rest of equity will be held by promoter employees.
Hotel Leelaventure reportedly plans to add seven new luxury hotels at Udaipur, Jaipur, Delhi, Hyderabad, Agra, Pune and Chennai over the next three to five years. Its floating casino at Goa has also become operational, the reports added.
Monday would prove to be a beautiful morning for markets after the NSG clearance in
Although NSG waiver is a major boost but there is one more step left and that is clearance by US Congress. After that,
BuyNTPCabv177tgt180, 183sl174, buyTATAPOWERabv1085tgt1100, 1115sl1078, buyBHELabv1748tgt1764, 1781sl1738, buyAREVAT&Dabv1640tgt1655, 1670sl1634
Short term Technical View of Nifty
Now, Nifty is likely to rally towards 4700 by this month end and the next short term correction is likely to occur around 4700 level. This view holds good as long as Nifty stays above 4350.
Instead, if it fails to hold above 4350 level, then it could decline towards 4200.
Extreme Short term technical view of Nifty
In the extreme short term, the level 4350 is crucial. A long as Nifty sustains above this level, the trend would remain bullish.
Nifty Intraday trading levels
Today, if Nifty trades above 4350, then it could test 4460 and above 4460, it could test 4530. Instead, if it fails to move above 4460, then it could test 4380.
Trading Strategy for Nifty
For intraday, the crucial level is 4460. Trade long above this level and be short below this level.
Positional traders can hold their longs with a stop at 4350 for a target of 4700.
Medium term outlook of Nifty dated on 02 July 2008
The medium term outlook of Nifty has turned bullish and it is likely to move towards 5500 by this year end and this view holds good as long as Nifty stays above 3600.
Long term outlook of Nifty dated on 02 July 2008
The long term outlook of Nifty is looking bullish and it seems that Nifty is in the middle of this bull run. So, the bullrun is likely to continue for another 4 to 5 years and this view holds good as long as Nifty stays above 3600.
Short term trading calls of Stocks
The short term trend of this scrip is looking bullish and it is likely to test 460 in the short term and this view holds good as long as it sustains above 405.
On contrary, if it trades below 405, the short term trend would turn bearish and in the downside it is likely to decline towards 370.
For intraday, the crucial level is 422. Trade long above this level and be short below this level.
Positional traders can initiate longs on declines with a stop at 405.
Sail
The short term trend of this scrip is looking bullish and it is likely to test 175 in the short term and this view holds good as long as it sustains above 135.
On contrary, if it moves below 135, then the short term trend would turn bearish and in the downside it is likely to decline towards 125.
For Intraday, the crucial level is 146. Trade long above this level and trade short below this level.
The crucial level is 135 in the short term. Initiate longs on decline with a stop at 135.
Infosys
The short term trend of this scrip is looking bullish and it is likely to test 1900 in the short term and this view holds good as long as it sustains above 1685.
On contrary, if it trades below 1685, the short term trend would turn bearish and in the downside it is likely to decline towards 1600.
For intraday, the crucial level is 1725. Trade long above this level and be short below this level.
Positional traders can initiate longs on declines with a stop at 1685.
Ranbaxy
The short term trend of this scrip is looking bullish and it is likely to test 550 in the short term and this view holds good as long as it sustains above 420.
On contrary, if it trades below 420, the short term trend would turn bearish and in the downside it is likely to decline towards 380.
For intraday, the crucial level is 455. Trade long above this level and be short below this level.
Positional traders can initiate longs on declines with a stop at 420.
SBI
The short term trend of this scrip is looking bullish and it is likely to test 1700 in the short term and this view holds good as long as it sustains above 1480.
On contrary, if it trades below 1480, the short term trend would turn bearish and in the downside it is likely to decline towards 1400.
The scrip seems to be making a expanding pattern with 1300 and 1700 as its downside and upside range respectively. Based on Elliott Wave, it can be assumed that is making a 2nd wave of next rally.
For intraday, the crucial level is 1510. Trade long above this level and be short below this level.
Positional traders can initiate longs on declines with a stop at 1480. Initiate short if it moves below 1480, with a stop at 1500.
The new entrants would replace four other Indian firms -- realty firm Unitech, Tata Motors, TCS and Satyam Computer -- on the investible index, global index major Dow Jones Indexes said in a statement.
The changes are part of the regular annual review of the index and would be effective as of the open of trading on September 22.
Other Indian companies on the index include RIL, L&T, ICICI Bank, Infosys, SBI, RCOM, Tata Steel, HDFC, BHEL, Suzlon and ITC.
Besides four Indian companies, other new components of the index would include three from Brazil -- BM&F Bovespa S/A Bolsa de Valores Mercadorias e Futuros, Companhia Energetica de Minas Gerais-CEMIG, Metalurgica Gerdau S/A Pref, two Chinese entities -- China COSCO Holdings Company Limited and China Communications Construction Co Ltd -- and Russia's Surgutneftegaz JSC.
The 10 companies exiting the index include Brazil's Banco Santander S/A Pref, Companhia de Gas de Sao Paulo Ord and Light S/A Ord, China's Jiangxi Copper Company and Trina Solar Limited ADS and Russia's Mobile Telesystems.
The float-adjusted market capitalisation of the reconstituted Dow Jones BRIC 50 Index has increased to $920 billion from $852 billion as of September 2.
The number of components in the index is fixed at 15 each for Brazil, India and China and five components for Russia to reflect the size of each market in the index.
Overall the charts and news are quite bullish for this week. But longer term, we remain bearish...Short term and maybe medium term(1-2 months?)...We can turn bullish...Watch out for more bullishness coming from the new channels and public...This will be our signal to be more careful...For now, things start to look rosy again...But dont be fooled into longer term investments...This is still an upward correction to all the downmoves we had so far.
By Archana Chaudhary
Aug. 25 (Bloomberg) -- PTC India Ltd. plans to start importing coal to supply power stations in return for electricity to defend its position as the nation's biggest energy trader.
PTC has agreed to supply 1.5 million metric tons of coal by December 2009, Chairman T.N. Thakur said in an interview in New Delhi. The company plans to invest in mines in Indonesia and India to secure as much as 15 million tons, equivalent to three- quarters of India's annual imports, he said.
The energy trader faces competition from new power exchanges and is using part of the 12 billion rupees ($275 million) it raised in a January share sale to invest in power projects and assets. PTC will pay generators to use its coal and sell the power produced to its customers, Thakur said.
``Coal is going to be king in the next few years and those who own the resource will grow,'' Prasad Dahapute, a Mumbai-based analyst with Antique Stock Broking Ltd., said today. PTC ``will make more money through generation than it can through trading.'' He recommends investors buy the company's shares.
PTC shares fell 1.3 percent to 79.1 rupees at the close in Mumbai trading after gaining as much as 2.4 percent. The shares have fallen 53 percent so far this year. India's benchmark stock index rose 0.3 percent today.
Demand for coal, which fires more than half of India's generation capacity of 141,000 megawatts, is rising as the country grows at the second-fastest pace among major economies. PTC has signed an agreement with a Singapore-based company to buy a stake in mines in Indonesia, the world's biggest exporter of power-station coal, Thakur said, without giving details.
`Expedite Generation'
``The idea behind developing this business model was to expedite generation and for this, you can't depend on Indian coal alone,'' Thakur said.
India may import about 20 million tons of coal in the year through March, according to the Central Electricity Authority, a statutory body that advises the government on power policy and sets technology standards for the industry. Imports may double by 2012, Anil Razdan, the most senior bureaucrat in the Power Ministry said May 21.
State and private utilities in India plan to almost double the country's generation capacity to 250,000 megawatts by 2017. New power exchanges are expected to help reduce shortages by conducting spot trades in electricity, which is usually sold through contracts, allowing captive plants run by companies to sell surplus power.
PTC owns 26 percent of Indian Energy Exchange, the country's first, which started on June 27. Financial Technologies (India) Ltd. is the exchange's founder and majority owner of the world's third-biggest gold bourse. The National Commodity & Derivatives Exchange said in June it won approval to set up a competing platform.
Capacity Addition
NTPC Ltd., India's biggest generator, and Power Finance Corp., which both partly own PTC, plan to set up the country's third electricity exchange.
Power generators haven't kept pace with rising demand from homes, factories, shopping malls and cinemas. India's peak electricity shortage may widen to 18.1 percent in the year to March 31, when it plans to add 10,178 megawatts of capacity, according to the Central Electricity Authority. The government targets adding 78,700 megawatts by March 2012.
Bulk of the capacity addition will come from nine coal-fired plants, each capable of generating 4,000 megawatts. These so- called ultra mega projects are planned near coal mines or along the coast to enable them to use imported fuel.
Tata Power Ltd., India's biggest electricity generator outside state control, is setting up one of the projects at Mundra in western India and has invested $1.2 billion in two Indonesian mines to secure coal supplies.
Prices at Australia's Newcastle port, the world's biggest exporter of thermal coal, reached a record $194.79 a ton in the week ended July 4. Prices have since declined to $162.15 a ton in the week ended Aug. 22, according to the globalCOAL NEWC Index.
cheers,
Keep your eyes on ABAN OFFSHORE (CMP : Rs.2285.70)......dont miss it.
Banks have performed well over a last few weeks, maybe this is in anticipation that the worse is over for the Banking and Financial sectors. Maybe because the can of worms is now empty or maybe just that they were so beaten down that this relief rally was what the doctor ordered! Nevertheless let us see what story the charts are trying to tell or rather what I personally can infer from them. As usual I start with a weekly chart of CNX BANK INDEX. First the obvious; yes we have a kind of slanting inverse H&S and a very nice trend line in this case the neckline. The price is in the sweet zone between the two EMA’s. MACD histogram is above the zero line and MACD lines have given a bullish crossover. Bank Index needs to break and close above 6650 for an immediate target of 7000/7200. The immediate supports are at 5950/6000 and breaking of pivot low at 5650 negates any bullish view we might want to adhere to. Moving on to the daily chart, we can observe compression in prices we have had two inside bars vis a vis the bar we made on the 2nd of September, the highs and lows of this bar can be used as stops for trading the Bank Index for shorts and longs respectively. The supports on the daily are at 6150 and 5950 where as the overhead resistance is at 6550 and a breakout is confirmed if we trade above 6620 with volumes. Since we just discussed the Bank Index, why not take a peek at SBIN a pivotal in Bank Index. Below is a collage of 4 charts (didn’t have patience to mark them individually), the charts going clockwise are hourly, daily, RS (gray background) and the weekly. First the weekly gets dissected; yes we have an inverse H&S here too! After the previous week’s hammer we have a long bullish candle accompanied by volumes. Last few weeks action is concentrated between the 23.6% and 38.2% retracement levels of the January high and July low. So I presume we have are make or break levels between these two points. With 1300 has a strong support SBIN needs to break above 1550, to take the path to 1625/50 and eventually to 1700. In the daily chart the price is nesting just below the trend line resistance waiting to breakout. We have a Doji on our hands (also an inside bar if using bar charts) a break above 1550 initiates a long trade (conservative play) with stop at 1450. The Hourly charts looks a bit tired and would be no surprise if it retraces to 1485/1500. The final chart with the RS line shows that SBIN is slowly gaining strength vis a vis the Index (Nifty Index in this case) Anant Raj Industries Ltd (CMP Rs. 150.15) Some Information About This Company: Company is planing to invest about Rs 4,300 crore in the next three years to develop various properties across north India as it aims to earn Rs two crore rental everyday by 2010.
___________
Note :However, ICICI bank give selling signal on Friday Closing, it has closed very near to the weekly support of 685.
You can trade in this stock for next few days.
Some Other stocks to watch are :
BHEL (1732) Buy above 1740 only.Opening can be Gape up on Monday.
Target can be 1760-1788.
ROLTA (326) Buy above 330 with target 327-348.
Sensex has made a low of 14438 which is close to support around 14400. Technically on the upside 14750 the gap should get filled with the NSG boost. The next important resistance comes at 15100 which is recent top. The range bound move could stay for quite some time -- As said before the corrective phase from 12500 should last around 50 sessions where in the range would be 13300( worst case ) /13700( ideal ) and 15500 ( ideal was said then too ) /15800/16400( optimistic ) on upside . We are just 15-20 sessions through so technically one can expect this range to remain !!!.
Market Observations and thoughts :
Finally NSG waiver comes in which is a big boost for India in the future . This could propel markets in extreme short term and particular stocks affected but one thing to be noticed is the profits for the said cos will take lot of time to come on books but sentiments change :) sooner .
Stocks to wathchout for :
IDFC looks good for a bottom buy with a stop of 88 for short to medium term.
Future capital if sustains 430 could see a quick move.
Supreme Infra seems a small breakout can buy on dips to 75 with a stop of 70 for medium term . 
LT ( six months, daily)
Nuclear deal is likely to boost the stock prices of stocks like LT, BHEL, ABB, Siemens,NTPC, Areva. Larsen has good support at 2500. Recently people shorted this stock from 2900. They will take profits. Beyond 2900, 3200 is a good possibility. I think those who could accumulate this stock in the last eight months are going to benefit in a big way sooner than later. Let us see. Market is the King!
Nifty :: Close above our first strong support 4345,Still above short term strong support zone, and above breakout level. All A group and B group shares may be finish there corrective C of 5th leg, But still major trend is in downward long channel . That’s why we see side way momentum with positive bias in indices.. We advise please book profit fast in such kind of uncertain market and Avoid buying at higher level or buy with strictly stop loss.. Momentum turn strong once again only above 4494/4522 till then our strategy for 8th Sep. below 4494 sell at high (S.L 4494) buy on dip (S.L 4284).. Watch strong supports at 4325/4284/4214.. Resistance for up move4375/4388/4420/4494/4522..
BUYABAN ABOVE 2307 TGT 2353>2416 STOPLOSS 2279
BUY APIL 402 TGT 411>423 STOPLOSS 396
BUY NTPC ABOVE 174 TGT 181>185STOPLOSS 171
SELL ESSAROIL BELOW199 TGT 193 >187 STOPLOSS 204
Ex-president and a prominent nuclear scientist, Mr. APJ Abdul Kalam says that the NSG waiver is good for India and that the country can choose to break the ‘voluntary moratorium’ on further tests in ‘supreme national interest’. He does not talk about the implications, though. Maybe, that would lead to another few decades of nuclear apartheid, but come to think of it, if that does happen we would not be any worse than what we already are. So, this NSG waiver is in the ultimate national interest of the country. This should be good news for the markets and we may see them go up on Monday, which may, eventually, take us outside the upper end of the range at 4650. According to Mr. Sudarshan Sukhani, the reality is that the deal itself is just a small help to the massive task of uplifting Indian poor to a better standard of living and that it is likely to play an insignificant part in the removal of poverty. Yet, he feels that the reality to be realized by the markets could take long enough to give us time to break out of 4600-4650 zone and reach 5100-5200 levels.
Seen above is the daily chart of the Nifty. I have added a lot of tools to the chart today and I hope it does not become very confusing for my readers. Superimposed on the prices, in brown, is the Moving Averages Convergence Divergence (MACD) which shows that it is now close to its signal line and has still not decided whether to go above these levels or to come below those. Hopefully, we should have an answer in a day or two, though the positive news already seems to have given the answer. Second, I have marked the recent range within which the Nifty seems to be moving, i.e. between 4200-4650. As is obvious from the range, there is support at 4200 and resistance at 4650. We can get a tradeable move in the intermediate trend only if the market were to come out of this range, upwards or downwards. Third, I have drawn a downtrending line marked AB which will provide resistance to the prices if it does decide to break above the upper end of the range at 4650. Fourth, I have drawn a line parallel to AB and have marked it as CD. This line, as can be seen, has been providing support/resistance at various levels in the last eight months. Surprising how just a line parallel to a trendline can do that. The most recent resistance was provided at 4515 on Thursday. Will it provide resistance again tomorrow or will this line be crossed and then become the support, is yet to be seen. In the bottom part of the chart I have attached the ADX indicator which, as mentioned in earlier newsletters, reflects the speed of a trend and extreme levels, such as those below 15, represent that one particular trend may now pick up momentum and the markets could follow that trend. However, it fails to give the direction of the trend and other indicators have to be seen to ascertain which way the trend is likely to shape up. The simplest way to find that out is to see which side of the trading range the Nifty breaks out on. The ADXvalue for the Nifty on Friday was 11 and never has the ADX reached such extreme levels, at least not in the last two years. We should soon see a big trending move come about
2. Support for Sensex: 13999
3. Resistance for Sensex: 14771- 15575
4. Support for Nifty: 4199
5. Resistance for Nifty: 4425- 4625
6. Profit from online stock trading tips: None of the tips reached the set up price and thus no trade was executed. Whenever such a situation arises it means that the trend had reversed on that particular day.
7. Market research for Strong Future stocks
Indian Bk
Great offshore
Jet airways
Moser Baer
Hind Petro
OBC
UBI
Karnataka Bk
BOB
Can Bk.
8. Market research for weak future stocks
JSW Steel
Tisco
NDTV
Htmt Glob
Aditya Birla
Chennai Petro
Ranbaxy
Guj. Alkalies
Triveni engg
Housing Dev
9. Make quick money with Indian stock market day trading tips:
Buy NTPC>174.1,175,5,177.5 sl 171.9
Buy BHEL>1742.1,1760,1788 sl 1738.8
Buy Aban Llyod>2301.1,2324,235,2360 sl 2293
Buy Power grid>93.1,94, 95 sl 91.9
Buy Murudeshwar ceramics>42.7, 44, 45 sl 41.5
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