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TRADING STRATEGY FOR 6TH AUGUST 2010 (Based on technical by O P AGARWAL)   Markets close lower on profit taking   The market opened flat to positive yesterday and remained range bound for the major part of the day except small profit taking at intervals. However, the market participants preferred to trade with caution in the absence of clear market trend. Capital goods and auto sector stocks closed subdued yesterday despite remaining in demand in early trades whereas IT and reality stocks outperformed but PSU, power, metal and banks except the SBI remained at pressure. Investors were seen worried about inflation and consequent fears of another rate hike by the apex bank in the near future. The Sensex, which surged to 18,295 in mid-morning session dipped to a low of 18156 during the closing hours and finally ended at 18,172 losing 44 points. The Nifty closed the day with a loss of 20 points at 5447 after making a high of 5487 and a low of 5443 in intra day trades. The market breadth remained marginally positive as out of 3069 stocks traded on BSE, 1581 stocks recorded gains and 1381 stocks declined. 107 stocks ended flat. NIFTY FUTURE (Last close 5457.55) The counter after flat opening yesterday remained range bound throughout the session except small profit booking at intervals. The counter finally closed flat with minor loss. The NF to gain strength needs to trade and remain above 5467.75 whereby it may move up to 5482/5503. Strong support for the counter exists at 5441.25 which if breached decisively with volumes then NF may slide to 5423/5408. WELCORP FUTURE (Last close 251.35) The stock after consolidating during the past four trading sessions closed yesterday above its weekly buy signal gaining marginally. The stock appears positive on charts and may move up to 256/259 once it trades and remains above 252.75. Strong support for the stock exits at 249.25. Meantime, the company’s net profit rose 37.16% to Rs 189.57 crore in the quarter ended June 2010 as against Rs 138.21 crore during the previous quarter ended June 2009.   DIVI’S LAB FUTURE (Last close 765.10) The company is engaged in research and development of pharmaceuticals and is the largest manufacturer of some peptide reagents and protected amino acids worldwide. The company’s net profit rose 70.62% to Rs 184.05 crore in the quarter ended March 2010 as against Rs 107.87 crore during the previous quarter ended March 2009.The Q1 2010 results will be announced by the company on the 12th August 2010 which are hoped to be encouraging. Meantime, the stock after consolidating during the past four trading sessions closed yesterday with good volumes above its weekly resistance signifying strength of the counter. The stock appears positive on charts and may move up to 774/779 once it trades and remains above 767.75. Strong support for the stock exists at 761.25.   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.