Trading strategy for 29th August 2012

TRADING STRATEGY FOR 29TH AUGUST 2012
(Based on technical by O P AGARWAL)

Markets close flat with cautious optimism

The market after flat opening yesterday soon slipped in the red on continuous selling in front line stocks, on lack of concrete fiscal measures and delay in implementing economic reforms. Capital goods and metal stocks declined sharply while select pharma, FMCG, power and IT stocks remained in demand and closed positive. The Sensex after declining to a low of 17570 from a high of 17712 closed losing 47 points at 17631 while the Nifty closed the day at 5334, off the day’s low of 5312, netting a loss of 15 points. Market participants remained engaged in selective roll over of positions from near month F&O series to the next month ahead of expiry tomorrow. Readers are advised to trade with caution keeping stock specific approach.

NIFTY FUTURE (Last close 5346.05)
The counter after flat opening yesterday soon drifted lower on profit taking and thereafter moved with negative bias throughout the session as investors preferred to stay away ahead of F&O expiry coupled with concerns over political crisis. The counter finally closed flat with marginal loss and appears weak on charts as it has remained below its weekly support. The counter may slip further once it trades and remains below 5323.25 whereby it may slide to 5306/5279. Strong resistance for the counter exists at 5361.75 which if crossed with volumes then it may move up to 5378/5399.

BANK NIFTY FUTURE (Last close 10090.45)
The counter after flat opening yesterday soon slipped in the red on sell off in the banking stocks continuing since last Friday on concerns over delay in economic reforms. The counter remained in the red throughout the session and finally closed losing 87 points. The counter may recover, once it trades and remains above 10132.75 whereby it may move up to 10185/10217. Strong support for the counter exists at 10048.25 which if breached with volumes then it may slide further to 10015/9963.

LIC HOUSING FUTURE (Last close 249.15)
The stock after consolidating during the past sessions closed yesterday above its short term trend line with moderate volumes gaining marginally. The stock appears positive and may move up to 252/254 on volume trading. Strong support for the stock exists at 246.25.

NTPC FUTURE (Last close 172.25)
The stock after remaining range bound closed yesterday gaining about 2% with high volumes. The stock witnessed sustained buying throughout the session yesterday indicating accumulation of the stock at current rates. The stock may move up to 175/177 on volume trading. Strong support for the stock exists at 170.25.

JUBILANT FOODS FUTURE (Last close 1165.80)
The stock after consolidating during the past week closed yesterday above its weekly resistance with high volumes gaining marginally. The stock appears positive on charts and may move up to 1174/1179 on volume trading. Strong support for the stock exists at 1159.25.

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.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won’t be liable or responsible for any legal or financial losses made by anybody.