Trading strategy for 10th February 2010
Wed, 02/10/2010 - 04:17
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TRADING STRATEGY FOR 10TH FEBRUARY 2010
(Based on technical by O P AGARWAL)
Markets close higher with cautious optimism
The market opened flat to negative yesterday on weak global cues but edged higher in morning trades itself on sustained buying in I T stocks led by bellwether Infosys. The market thereafter witnessed buying in other front line stocks too coupled with short covering which rendered the market mood to positive The Sensex, which had declined to 15,862 in morning trade, closed the session at 16,042, netting a gain of 106 points while the Nifty closed at 4792 well off the day’s low of 4739. Major gainers yesterday were the IT and cement stocks, whereas stocks from other sectors like pharma, power, capital goods and bank stocks also found good support from the investors. The market breadth yesterday appeared slightly positive at close as out of 2881 stocks traded on BSE, 1500 stocks closed higher. 1302 stocks declined and 79 stocks ended flat. The market appears to be waiting for some positive trigger from global bourses which may push up the market to higher levels. However, readers are advised to watch the market trend before taking large positions.
NIFTY FUTURE (Last close 4793.35)
The counter after flat opening yesterday moved upward in subsequent trades and remained firm throughout the session except profit taking at times. The counter is inching towards positive bias as is evident from yesterday’s pattern of movement after it closed the session gaining 28 points. NF may move up further to 4852/4886 once it trades and remains above 4821.75. Strong support for the NF exists at 4753.25 which if breached decisively with volumes then NF may slide to 4736/4714.
APIL FUTURE (Last close 532.15)
The stock after moving range bound during the past few trading sessions closed yesterday way above its weekly resistance albeit with low volumes. The stock appears positive on charts and may move up to 538/542 once it trades and remains above 534.00. Strong support for the stock exists at 528.25.
ABAN OFFSHORE FUTURE (Last close 1172.35)
The stock after moderate volatility closed yesterday above its short term trend with high volumes indicating accumulation at current prices. The stock remains positive on charts and may move up to 1187/1206 once it trades and remains above 1177.75. Strong support for the stock exists at 1166.25.
EDUCOMP SOLUTIONS FUTURE (Last close 662.15)
The stock after a recent high of 717 on the 3rd February 2010 saw a steep decline to 638 on 5th February 2010 on strong selling pressure but however, the stock appears to be consolidating now at current price and may make an up move to 671/677 once it trades and remains above 664.75. Strong support for the stock exists at 657.25.
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
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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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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. |
