Market Strategy For 3rd Nov 2014

LIFE TIME HIGHS AGAIN AS JAPAN STIMULUS CREATES BUYING FRENZY; TREND CONTINUES TO BE BULLISH; A CONSOLIDATION IN MARKETS IS IMMINENT SO BUYING ON DIPS REMAINS THE STRATEGY; MARKETS MAY BE ENTERING THE EUPHORIA PHASE WHICH CAN LEAD TO BIG RALLIES AS WELL AS SUDDEN DECLINES

A ‘NOW OR NEVER’ RALLY STARTED TWO DAYS AGO, PUSHING NIFTY, BANKNIFTY TO NEW HIGHS WHILE THE CNX-IT IS RACING UP TOWARDS ITS LIFE TIME HIGHS. ‘NOW OR NEVER’ UPSWINGS ALMOST ALWAYS END WITH PAIN,

UNFORTUNATELY. WE REPEAT OUR SUGGESTION: TRADERS SHOULD BUY ONLY ON DIPS AND CONSOLIDATION, TAKE INTRA DAY POSITIONS.

Bank Nifty has seen a big up move on Friday and made another life time highs. Prices moved up and close higher above 17000 levels. The last 2 days are very wide range days so we may expect a little choppiness in next week with narrow price action or a minor dips. In a bull market, these dips and small consolidation are a buying opportunity. Look for a buying opportunity in this secto

CNX IT has seen a big up move today and prices closes higher. Prices are now trading near its resistance at 11500. A close above this resistance may give us another buying opportunity in IT Stocks. But if prices find resistance near 11500, then it should be treated as a profit taking opportunity

FINANCIAL Sector has seen a deep correction. After that prices have consolidated and breaks above the resistance. Suggest correction is over in this sector. LICHSGFIN, HDFC, PFC and RECLTD have already broken above from a base at its bottom whereas REL CAPITAL, IFCI and IDFC are at the verge of breakout. Look for a buying opportunity in this sector

SCRIP LTP DESCRIPTION NTPC 150.40 NTPC has seen a breakout from a consolidation and then made another narrow trading range. This range breaks above. Buy this stock above 151. If this trade executes then place your stop just below 148 with a target near 157. RELCAPITAL 473.95 RELCAPITAL has seen a deep correction. After that prices started consolidation and build a narrow trading range at its bottom. This range has seen a breakout and prices close above to this range. Buy this stock above 475. If this trade executes then place your stop just below 465 with a target near 49 RPOWER 76.40 RPOWER has seen a deep correction. After that prices started consolidation and build a trading range at its bottom. Prices are at the verge of breakout from this range. Buy this stock above 77. If this trade executes then place your stop just below 75 with a target near 81 VOLTAS 251 Trend is up in VOLTAS. Prices have seen a sharp fall. After that prices started trading choppy and build a large trading range. Prices have seen a breakout on Friday and closes higher. Buy this stock above 253. If this trade executes then place Your stop just 248 with a target near 263.

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.