NEWSLETTER

(NOORESH)

Sensex technical View :

Couple of dojis on top closer to previous high does send signals that the index is yet not decisive about the next move.

But a doji doesnt give a confirmation of a turnaround but just a caution to wait and watch for next few sessions. Simply put last 3 sessions low is around 14600. Sensex if closes below 14600 convincingly may possibly see it testing supports at 14100/13700 in short term.

Although index continues to remain choppy at higher levels this bout of volatility may increase for next few sessions. Continue to be stock specific trade with more strict stoplosses.

Market Observations and Thoughts :

Every day i have been getting numerous questions like What to invest in ? What to buy for short term ? . The major link missing is WHY TO BUY !!! .

Is it because a stock has been on circuits for last 20 days so it may stay for another 10 days or just because the stock is up 5-10% daily it may continue to forever.

I believe as a trader and investor one needs better reason to bet your hard earned money as with leniency and no discipline it doesnt take much time to lose quite a bit of gains made through hard work in last few months.

This is not a sell call but just a few words about being disciplined and conserving capital and gains to be more important then profiteering coz of luck.

Stocks to watchout for :

Assam co ckt , Shaw Wallace now book , Manugraph hold on.

Tata Motors gives good move 355 to 375 in the day. Bajaj Holdings completes tgt. Nicholas Piramal hold. GAIL buy arnd 290-295 with 10 bucks stop.

HINDUSTAN UNILEVER

The stock can be bought on dips to 235 stop of 228 tgt of 245 for short term trading. Chart already posted ( disclosure recommended to clients at 232 2 days back )

Intra day trades can look to buy Bharat Forge arnd 186-188 and Zee at 186-188 with a stop of 182 in both the cases for tgt os 195/199

MIDCAPS STOCKS which need some fundamental analysis to be done. Hope readers will contribute this time around. None seem interested in Feb/March when i used to come up with a list !

Maithan Alloys

Alembic Ltd

Classic Diamonds

Uflex Inds

Saksoft

The stocks do look technically well placed for an appreciation of 15-40% over next 1-2 months. Fundamentally also look interesting but needs more study. So do your own research.

MY CHART

Nifty :: Once again Nifty made an insider day with long legged Doji candle pattern.. Still break out and break down level same as yesterday.. Breakout level 4586 and breakdown level 4450...Treade only after breakdown or breakout level.. Above 4586 one more strong resistance at 4600 .. All daily and intraday indicator are in overbought zone that’s why our strategy same as yesterday for 4^th Jun, up to 4586 sell at high(S.L 4600) buy on deep (S.L 4450) .. Resistance for up move at 4563/4586/4600/4650.. Supports at 4500/4478/4450/4400/4350..…(As we say in yesterday post in such kind of over bough zone be careful in up move and use tighten stop loss in buying)

(Inder Bhatia)

The Indian market opened on higher note and close on flat note .On daily chart we are witnessing a spinning top {a spinning top is a candel with a small real body during a rally or near new high a spinning top can be sign that price are losing momentum and bulls may be in trouble . we are see negative divergence on hourly charts nifty moving up and rsi moving down side .If nifty trade below 4508 it will test 4459-4411 zone .On the upside 4556-4582 will act as resistances zones .

Nifty EOD Charts of 02 June 2009



After Opening up Nifty tested 4586 making new highs but gave up all gains as its very close to profit booking enter 4610-4646. Profit booking was seen in many large cap stocks in the initial trading sessions & stocks like Reliance pack, Metals, Banks, CG & many more sectors were in Profit booking mode. But small & mid cap stocks were on fire & sustained the whole till the last hour of session begun.

NifTiee Intra day Levels :

Close 4525
Supports : 4488 / 4444 / 4414
Resistances : 4545 / 4610 / 4646

Stocks recomended yesterday & may gain even today are
Satyam
Opto Circuit
Balrampur Chini
Book Profits in all these stocks today & can watch out yesterdays recomended stocks with the same break out levels.

PROVISIONAL FUND FLOW FIGURES RUPEES CRORES FOR 02 JUNE 2009

FII -233

DII -424

FII(DERIVATIVES) -639

(Tryin2Trade)

The Candlestick Doji, what is it? It's a sign that the market is confused. Should we continue to go up? Or, should we be heading down? These are the questions the crowd is asking right now. When the market is confused, bull and bears are matched in strength, which is why the doji forms and now we have two of em! The latest one also confirms as an Inside Bar.

Rule number 1 for the Doji is that you always sell when you see a Doji at the top. This is not the same when a Doji is in a downtrend. The Doji in the downtrend requires a buying day to confirm a reversal. If the price opens lower the next day, close longs or establish shorts immediately. However, if the price does open higher, put a sell stop at the previous day's close. This would be the indication that the sellers have taken over. This creates a relatively low-risk short trade or gets you out of a position very close to the maximum profit potential of a trend.

Vakrangee Software is an Easy come Easy go pick! Why I am saying this is because the stock has some good news and the news is that TCS has approached it to work as build partner for the Passport Sewa Kendra project at a few sites. And the bad news is that the FII holding in has dropped from approx 34% as on Dec 2008 to about 16.8 % in Mar 2009!

Check the chart above the stock has been locked in upper circuit for past couple of days (news based buying!) and that too on abysmally low volumes. This can give some astounding returns but then on the flip side it can hit the down circuits with equal ease too and making exit difficult. A small exposure on dips preferably near 40/45 levels can show the 80/110 and 130 in the near future. Just to make things clear I have posted the weekly chart also below.

Remember I still stress on SMALL EXPOSURE and not suggesting this stock for trading. This would be better off if you buy and forget about it for some time rather than watching the screen daily.

ovegupta

BUY DLF AT 400 TARGET 470

BUY TATA STEEL AT 490 TARGET 550

BUY EVEREST KANTO AT 218 TARGET 280

BUY UNITECH AT 95 TARGET 125

(Azad)

NIFTY : (4530.70) Today Nifty face resistance at 4578, if cross 4578 then goes up to 4625. Nifty find support at 4509, if 4509 break then fall up to 4481 and 4430.

AXIS BANK : (717)

Buy Above 725 target 1-736, target 2-760, stop loss 704
Sell Below 704 target 1-691, target 2-677, stop loss 725

RELIANCE : (2245.90)

Sell Below 2245 target 1-2211, target 2-2175, stop loss 2260

REL CAPITAL : (968.20)

Sell Below 965 target 1-940, target 2-904, stop loss 980

REL INFRA : (1231.25)

Buy Above 1240 target 1-1267, target 2-1302, stop loss 1230
Sell Below 1230 target 1-1203, target 2-1175, stop loss 1240

HDIL : (308.60)

Sell Below 308 target 1-300, target 2-281, stop loss 316

HINDUNILVR : (239.70)

Buy Above 238 target 1-246, target 2-264, stop loss 234

ICICI BANK : (719.45)

Buy Above 726 target 1-746, target 2-765, stop loss 712
Sell Below 712 target 1-702, target 2-686, stop loss 726

JSW STEEL : (587.35)

Sell Below 575 target 1-560, target 2-545, stop loss 590

STERLITE : (702.35)

Sell Below 700 target 1-678, target 2-653, stop loss 710

TATA STEEL : (488.10)

Sell Below 485 target 1-475, target 2-465, stop loss 500

Yesterday market open huge uptrend and after 10.30 market will downside come upto Nifty fut 4480 levels. Andthen market heavy volatile and winding 10 to 30 points. After 2.30 pm market will recover from the lower levels. Today market also huge uptrend and higher level profit taking continued it. We expect huge correction this month in markets Nifty 200 to 400 points and Sensex down 800 to 1200 points. Today market will cross 4520 level. The nifty will go further uptrend upto 4620 to 4680 levels. But it will not cross below 4480 Nifty will trade the nifty will come 4420 to 4320 levels.

Nifty Spot

R-4530/4578/4624.
S-4482/4432/4386.

Nifty Fut

R-4533/4585/4630.
S-4488/4436/4391.

Sensex

R-14884/15034/15197.
S-14721/14571/14408.

Yesterday market heavy volatile it. so Sell call not active . Buy call first two targets achived. Today Nifty Buy abv 4530 Sl 4480 tgt 4550,4570,4590 and 4620 levels. Nifty Sell Below 4480 Sl 4530 tgt 4460,4450,4430 and 4420 levels.

(Ilango)

Nifty Half Hourly Chart


Nifty Daily Chart

Nifty Half Hourly Line Chart

Nifty again formed a Doji and also an Inside Day. Highly indecisive patterns. We have to wait to see which way it breaks out, above 4586 or below 4451.The half hourly charts shows the Nifty moving in an equilateral triangle. This pattern too does not help us make a probable prediction of the direction of breakout.

If the Nifty manages to stay above 4530 we can see upsides of 4586 and 4650.

Supports below 4451 are at 4390 on the channel's mid line.