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TRADING STRATEGY FOR 20TH AUGUST 2010 (Based on technical by O P AGARWAL)     Markets close on buoyant note   The market after flat to positive opening yesterday remained steady throughout the session, with the key benchmark indices hitting 2-1/2-year highs. Select stocks remained in demand in morning trades and extended gains on positive Asian markets. The market extended gains in early afternoon trade after the latest data showed the pace of rise in inflation slowed early this month. Food inflation for the week ended August 7 came in at 10.35% versus 11.40% for the week ago while Primary Article inflation dipped to 14.85% as against 15.66%. Fuel inflation stood at 12.57% versus 12.66%. The market pared gains in afternoon trade after soft opening of European markets but hectic coupled with frenzied buying in index heavy weights pushed the indices to a 30 month high which held firm till the close of the session. FIIs have bought more than 6K crores worth of equity so far this month indicating their continued interest in Indian markets. The Sensex, after making a high of 18475 in afternoon trades finally closed the session yesterday at 18454 gaining 197 points, its highest level since early February 2008. The Nifty too closed the day at 5540 gaining 61 points after hitting a high of 5544 in afternoon trades. Readers are however, advised to trade with caution in view of high volatility seen in the market.     NIFTY FUTURE (Last close 5527.70) The counter after flat opening yesterday moved progressively higher hitting 2-1/2- year highs in late afternoon trades on frenzied buying in index heavy weights stocks. The NF finally closed the session yesterday near day’s high of 5533 gaining 44 points showing firmness. The counter may however, be impacted on negative global cues but indications are of an up move to 5559/5581 once it trades and remains above 5542.75. The NF may find support at 5503.25 which if breached decisively with volumes then it may slide to 5488/5474.     IDFC FUTURE (Last close 184.80) The company is one of the major lenders and consultant for infrastructure projects. Net profit of the company rose 31.30% to Rs 319.71 crore in the quarter ended June 2010 as against Rs 243.50 crore during the previous quarter ended June 2009. The stock of the company gathered momentum recently on reports that the company may apply for a banking license which however, was denied by the company. Meantime, the stock after consolidation during the early part of the week closed yesterday above its weekly resistance indicating accumulation at CMP. The stock appears positive on charts and may move up to 187/189 once it trades and remains above 185.25. Strong support for the stock exists at 182.50. REC FUTURE (Last close 322.35) The stock of the company after steady rise during the past few trading sessions witnessed profit taking yesterday and lost over a percent despite buoyant market sentiment. The stock appears with negative bias on charts and may slide further on profit booking to 317/313 once it trades and remains below 321.25. Strong resistance for the stock exists at 327.50.   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.