Market Strategy For Trading on 8th Oct. 21014

THE MARKET OPENED AFTER A FIVE DAY EXTENDED HOLIDAY AND PROMPTLY FELL, GIVING SHORT SELLERS A FAIR PROFIT. PARTIAL PROFITS SHOULD BE TAKEN ON SHORT TRADES, AS MARKETS MAY BE VOLATILE AND DIFFICULT TO PREDICT IN NEXT FEW DAYS.

For short term traders, stay on the short side with reduced positions. Take profits on any intraday plunge. Understand that markets are getting short term oversold, therefore, we should look for signs of support: a sharp decline that finds support after a fall. At such support level, take profits on the balance of your positions.

·        Bank Nifty has seen a big decline today and closed below to its last swing low. This decline came after the narrow prices action in the index. Next, support comes at 14750 which may or may not hold. As of now trend is down and we should look for a shorting opportunity in Banking Stocks as well in the Index.

·        A Choppy and volatile trading day for the CNX IT index. Prices have seen up’s and down today and closes at the open. Support comes at 11250 in CNX IT. Trend is very strong on upside and we should take a long trade in IT Stocks.

·        OIL Sector has been declining and in a phase of correction. This correction is now finding support near the last swing low and begins a process of consolidation. This suggests that we may see a deep correction in Oil Stocks. Long term trend is up in this sector so we should avoid taking short trade in oil stocks. Wait for prices to confirm an up move then look for a buying opportunity in this sector. 

SCRIP	LTP	DESCRIPTION
IRB	220.20	IRB has been trading inside a large range. This range has broken on downside and prices are
		trading below to it. Sell this stock below 219. If this trade executes then place your stop just
		above 226 with a target near 205
MOTHERSUMI	390	MOTHERSUMI has seen a sharp upside move and then a correction. This correction made a
		pattern of descending triangle. This pattern has broken on downside and price closes below
		the support line. Sell this stock below 388. If this trade executes then place your stop just
		above 398 with a target near 368
NTPC	141.30	NTPC is consolidating at its bottom. Inside this consolidation, prices have form a pattern of
		Ascending Triangle and broken above the resistance line of this pattern. This is a high risk
		trade because intermediate trend is still down. Buy this stock above 142. If this trade executes
		then place your stop just below 140 with a target near 146
SUNTV	335.55	Trend is down in SUNTV. Prices have seen a sharp upside move and find resistance near
		345. Today prices saw a down move and close lower. This suggests that the correction is now
		over. Sell this stock below 333. If this trade executes then place your stop just above 345 with
		a target near 320.