TRADING STRATEGY FOR 9TH FEBRUARY 2010
(Based on technical by O P AGARWAL)
Markets end flat amid high volatility
The market after flat opening yesterday drifted lower in early trades on weak global cues primarily from the Asian markets. The markets in a surprise move around early afternoon, after the government announcement on economic growth, witnessed large scale buying in frontline stocks which lifted the indices to day’s high. The markets however, failed to sustain at higher levels and witnessed profit taking which erased substantial portion of earlier gains. The markets finally closed flat with marginal gains. The Sensex, which dipped to a low of 15,651 around mid morning, recovered sharply and rose to 16,061 in afternoon trade before closing with a paltry gain of 19 points at 15,935. The Nifty too ended at 4760 gaining merely 3 points after making a low of 4675 in morning trades and a high of 4799 in mid afternoon trades. The market breadth yesterday remained marginally negative at close as out of 2854 stocks traded on BSE, 1444 stocks declined and 1329 stocks closed with gains. 81 stocks ended flat. Readers are advised to trade with caution in view of very high volatility seen in the markets.
NIFTY FUTURE (Last close 4764.90)
The counter after flat opening yesterday drifted lower in subsequent trades under selling pressure till early noon when a sudden buying in frontline stocks after the release of higher economic growth forecast by the government turned the market sentiment highly positive. The NF thereafter flared up to day’s high at 4806 which however, failed to sustain and finally the counter closed the session with a paltry gain of 15 points. The chart pattern for NF on weekly basis however, continues to remain with negative bias which one needs to take note of. The NF amid high volatility took support yesterday exactly at 4667, a level indicated in these columns and bounced back. Meantime, the NF to continue it’s up move needs to trade and remain above 4781.75 whereby it may move up to 4808/4835. Strong support for the NF exists at 4722.25 which if breached decisively the NF may slide to 4695/4665.
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ORIENTAL BANK FUTURE (Last close 264.10)
The PSU banking stock closed yesterday above its weekly buy signal with high volumes gaining over 1%. The stock after a recent high of 288 on the 2nd Feb.’10 lost favour of the investors and drifted lower losing substantially. The stock however, appears to be consolidating at CMP and may move up to 269/273 once it trades and remains above 265.75. Strong support for the stock exists at 260.25.
CHENNAI PETRO FUTURE (Last close 240.25)
The stock after remaining range bound during the past week closed yesterday near its weekly resistance with positive bias. The stock appears positive on charts and may move up to 245/249 once it trades and remains above 241.50. Strong support for the stock exists at 235.25.
PATNI COMPUTERS FUTURE (Last close 454.55)
The software stock closed flat yesterday with average volumes amid moderate volatility. The stock appears positive on charts and may move up to 464/469 once it trades and remains above 457.50. Strong support for the stock exists at 450.25.
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
Mobile: 09825029446
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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