Stock To Trade 06 05 2011

• Bank of Baroda 845.1 TA Turtle breakdown in bank of baroda 30 min chart, sell with stop loss above 860.
• HUL 3 balck crow candlestick pattern in HUL daily chart and TA Insync 55,5 is also moving down. Sell with stop loss above 272.

DERIVATIVE PICK 06 05 2011

HDFC BANK ( CASH – Rs.2220) : The stock is trading at its critical support level area of around Rs.2210 and once it starts trading below Rs.2207, we can expect the stock to decline further. Selling is advised below Rs.2205 for a target of Rs.2189 and Rs.2172. Lower target of Rs.2165 and Rs.2156 is also possible. Stop Loss of Rs.2231 should be kept. ORCHID CHEM ( CASH – Rs.297.70) : The stock has made a lower top and we expect selling pressure to intensify. Selling is advised below Rs.291 for a target of Rs.285 and Rs.280. Lower target of Rs.275 and Rs.272 is also possible. Stop Loss of Rs.301 should be kept.

Market Outlook 06 05 2011

Markets opened on a steady note and Nifty did look like settling above 5500. Considering the fact that indices had to contend with a weak opening in Bharti after lower than anticipated profits Nifty did look like finding its feet just around the 5525-5550 zone. But, it was not to be as after trading listlessly in a tight zone Nifty began to lose ground during the mid session. The downtrend gained momentum from thereon as more and more stocks came under fresh bear assault. Most of the metal counters were weak as were the Realty counters. Heavyweights

like HUL, ICICI, HDFC, Infosys, Bharti , Sterlite , ITC and NTPC struggled and put the indices under immense pressure. The Cement counters continued to be under bearish spell and lost more ground. Hero Honda found buyers and was up more than 6% after management indicated that the company has been able to maintain good margins despite lot of different pressures. It was a decent day for RIL too as the stock was up almost 2% during the day before shedding almost half of its gains towards the close. BOI, Apollo Tyres, MRF, Kotak, United Phosphorous, Tulip, Lupin and Titan were some of the other gainers. But overall, it was another day of bears’

dominance as Nifty closed below 5450. Nifty extended its losing streak for 9th consecutive session and contrary to our expectations there was no support around 5475-5500. Even the so called ‘over sold’ counters did not find any technical rebound and capitulated further. Globally too the things are cooling off a bit as has been seen in the case of most commodities. FIIs remain heavy sellers and that is keeping our markets under lot of pressure. Technically, Nifty has closed below 5500 and now the range between 5575-5610 becomes a strong short term

technical barrier. Out of the few heavyweights mentioned yesterday only RIL and ONGC remain in some sort of positive territory and could support indices. Metal counters continue to look weak. Bhel has seen breakdown today and could target Rs 1940-50. Overall, it seems that one should wait for markets to settle down and find its bottom before looking for trades on the ‘long’ side. Nifty has immediate support around 5415-20 and then around 5365-5370 while resistance is seen around 5515-25 and then around 5590-5610.

Stock To Watch 03 05 2011

• GT OFFSHORE 268.30 TA Insync is moving down in GTOFFSHORE. Sell with stop loss above 273.
• BHEL 2020.10 NR7 pattern in BHEL. Sell with stop loss above 2040.

Nifty breaks down its large trading range (5730 5900).

Nifty Watch:- Today Nifty opened at 5766. At the same time Nifty touched its day high at 5775 and then start moving down and touched it low at 5687 and finally closed at 5697 with a decline of 69 points to its day open.

Nifty breaks down its large trading range (5730-5900) and closed below it. Nifty is now at its previous low which is made on April 19 2011 at 5693. It may possible that nifty find its support and move up and it is also possible that nifty breaks down it.

Trend:- Nifty is breaks down its 200 days MA and closed below it. Nifty trading above to its 50 days MA.

Level:- Looking for support at 5600. Resistance comes at 5800.

TA Insync (55-5) is in downtrend. It is moving down at -19.39. This suggests that Nifty may move down also.

Summary:- Nifty breaks down its trading range and 200 days MA and moving down. Buying is not
suggested now, thus investors and traders should wait for a buy signal.