Trading strategy for 8th February 2010
Mon, 02/08/2010 - 01:52
<!--[endif]-->
<!--[if gte mso 10]>
<![endif]-->
TRADING STRATEGY FOR 8TH FEBRUARY 2010
(Based on technical by O P AGARWAL)
Global cues key factors for the market tend
The market last week closed in the negative on extremely weak and unstable global cues primarily evident in select EU economies The trend appears to remain negative despite oversold market position as investors have built up significant shorts both in Nifty and stock futures. In the present scenario however, any positive news either domestic or global may force the bears to run for significant short covering, which may sharply pull back the market or else the market may remain flat to bearish. Further, investors remain cautioned with the strengthening of US dollar which in turn may force the foreign institutional investors to pull out funds, putting pressure on the cash market. Readers are advised to trade with caution in view of high volatility in the markets and uncertain market trend.
NIFTY FUTURE (Last close 4749.35)
The counter closed the week losing 126 points amid high volatility and intra week swing of more than 250 points. The counter during the week dipped to a low of 4687, very near to the support level indicated in these columns on last Monday the 1st February, 2010 under the weekly review, the NF however, recovered later on and closed higher. The NF remains with negative bias on weekly charts and may oscillate this week between 4667-4839, break above NF may move up to 4878/4930 or else break below NF may slide to 4615/4577. For today’s trading NF needs to trade and remain above 4771.75 to continue it’s up move to 4787/4799. Strong short term support for NF exists at 4722.25 which if breached decisively with volumes then NF may slide to 4709/4687.
HCL TECH FUTURE (Last close 340.00)
The stock after moving range bound closed the week flat with marginal loss. The stock however, remains positive on charts and may make up move to 346/349 once it trades and remains above 341.75. Strong support for the stock exists at 337.75.
INDIA INFOLINE FUTURE (Last close 114.00)
The stock after moving range bound closed the week marginally lower amid general sell off in the market during the previous week. The stock appears positive on charts and may move up to 119/124 once it trades and remains above 115.25. Strong support for the stock exists at 112.25.
JP ASSOCIATE FUTURE (Last close 128.35)
The stock closed the week in the negative amid general sell off in the market over weak global cues. The stock however, appears to consolidate at current levels and may move up to 134/139 once it trades and remains above 129.75. Strong support for the stock exists at 125.25.
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
|
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. |