TRADING STRATEGY FOR 4TH JANUARY 2010
(Based on technical by O P AGARWAL)
Markets close with positive bias
The market closed the final day of trading in 2009 on a positive note with the Sensex gaining 121 points over its previous close. A sense of optimism was visible in the market with the market participants in happier mood. The year gone by closed the Sensex at 17464 with 81% gain over its previous close, one of the highest single year gain since 1993. The Nifty remained in close race and closed the year gaining 75.7%. The market buoyancy to gain further momentum depends on the Q3 results which will start rolling out from this week on wards. Meantime, as is seen during the past several months, global cues will continue to have a significant impact on the market, although our economy may fare better than its peers but inflation remains a matter of concern and to contain the same the apex bank may well resort to some monetary tightening measures in the near future. Meantime, the investors will cheer up the auto sales numbers for December 09 which has surpassed the street expectations. However, a section of market men opine that the current market rates have already discounted the Q3 results and therefore, the market may possibly see some correction in the coming days. The readers are therefore, advised to watch the market trend before committing large positions.
NIFTY FUTURE (Last close 5215.00)
The counter closed the year making a new high at 5239 amid low volatility during the previous week. The counter appears positive on weekly charts and may remain in the range of 5165-5295 this week, break above NF may move further up to 5344/5388, or else break below may take the NF to 5130/5107. For today’s trading the counter needs to trade and remain above 5231.50 to continue its up move whereby it may move up to 5257/5283. Strong support for the NF exists at 5184.25 which if breached decisively with volumes then NF may slide to 5169/5146.
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INDIAN BANK FUTURE (Last close 174.05)
The Bank is a full service bank, in which the Government of India holds 80% stake. The bank offers a wide range of services including a foreign currency-banking unit at Colombo and specialized overseas branches at Chennai, Bangalore, and Mumbai exclusively for handling foreign exchange transactions arising out of export, import, remittances and non-resident Indian business. Net profit of the bank rose 31.48% to Rs 371.98 crore in the quarter ended September 2009 as against Rs 282.92 crore during the previous quarter ended September 2008. Meantime, the stock after moving range bound closed flat during the previous week. The stock appears to be consolidating at current prices and may move up to 177/179 once it trades and remains above 174.75. Strong support for the stock exists at 172.25.
NAGARJUNA CONSTRUCTION FUTURE (Last close 166.25)
The company is engaged in constructing industrial and commercial buildings, roads, bridges, underground drainage and sewerage, stadiums, flyovers, multi-store and duplex apartments, farm and private houses. The company has huge unexecuted pending orders to be completed during the coming years and hopes to do much better during the current year with the revival in the economy. Meantime, the stock of the company after moving range bound during the past week closed flat with positive bias amid moderate volumes. The stock appears positive on weekly charts and may move up to 172/175 once it trades and remains above 167.25. Strong support for the stock exists at 163.00.
PHOTOQUIP INDIA (Last close 36.60)
The company is a pioneer in manufacturing various types of photo equipments for professionals as well as for end users. The products are mainly exported and well appreciated in world markets. The company closed the previous financial year with a profit of 6.23 crores vs 4.8 crores. The company is a debt free one and hopes to clock a hefty profit during this year. Meantime, the stock after consolidation surged last week to new high with volumes. The stock appears positive on charts and may move up further to 39/41 once it trades and remains above 37.00. Strong support for the stock exists at 35.00.
VISHAL INFO TECH (Last close 13.00)
The company is engaged in the business of Data Digitization & Conversion, E-Publishing, Digital Library Solutions & Print on Demand Conversion. The company is reported to be in final stages of acquiring an European Digitization Company which is a leading services provider to Newspapers and Libraries across Europe. The acquisition will immensely help the company in augmenting its revenue to more than 130 crores with bottom line to more than 30 crores. The company which declared a Bonus if 1:2 shares and a final dividend of 12.5% this year is expected to reward its shareholders suitably in the years to come also. The company is proposing to diversify in related areas to boost its revenue and become a leader in the category. Meantime, the company has declared excellent half yearly results with profit at 13.92 cr(09-10) against 7.94cr (08-09) which is up by 75%. The company holds a very bright future. Meantime, the stock is moving sideways for the past one week and closed the week gaining over 4% with average volumes. The stock appears positive on charts and may move up to 15/16.50 once it trades and remains above 13.25. Strong support for the stock exists at 12.40.
GOLD FUTURE (Last close 16733.00)
The counter after consolidation during the past three trading sessions closed in the positive on Saturday the 2nd of January 2010. The gold appears to be positive on charts and may move up to 16765/16804 once it trades and remains above 16745. Strong support for gold exists at 16709 which if breached decisively then the gold may slip to 16688/16661.
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
Visit www.bazaarbhavishya.com regularly
Email: opagarwal805@gmail.com
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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.
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