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Wednesday, March 2, 2011
Stock To Trade 03 03 2011
- SBI :- TA Turtle upside breakout in SBI 30 mins. Chart. Buy with stop loss below 2668.
- GPCL :- NR7 pattern in HPCL. Buy above 331, Sell below 322.
- Wipro :- TA Insync 55,5 moving up in Wipro daily chart. Buy with stop loss below 432.
Recalled post budget rally.
Nifty Watch:- Today Nifty strongly opened at 5375 with a gap of 32 points to its yesterday close. This is also its low for the day. Market is in the control of bulls from its start. Nifty made a high at 5551 with an increase of 176 points to it day open and finally closed at 5547 with an increase of 172 points to its day open and day low both.
As we have discussed yesterday about uncertainty in the market due to Nifty made DOJI. This big move is suggested that now there is no uncertainty in the market and bulls take the control of the market in their hands. As market runs in two phases; Expansion and Contraction. This rally is in expansion phase and now we may see a contraction phase. This suggests that the market may consolidate for coming few days.
Trend:- The short term trend is up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. TA Insync(55-5) is above the level of -45 and start moving up. This indicator is suggesting that nifty can made a new high.
Level:- Looking for support at 5450 . Resistance comes at 5700.
Summary:- Today market boom is the impact of the budget. Budget is in the favor of short term trade. Thus Nifty may touch a new short term high level. Nifty never made such a huge rally after budget from last 10 years. So this may go in the favor of bulls.
As we have discussed yesterday about uncertainty in the market due to Nifty made DOJI. This big move is suggested that now there is no uncertainty in the market and bulls take the control of the market in their hands. As market runs in two phases; Expansion and Contraction. This rally is in expansion phase and now we may see a contraction phase. This suggests that the market may consolidate for coming few days.
Trend:- The short term trend is up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. TA Insync(55-5) is above the level of -45 and start moving up. This indicator is suggesting that nifty can made a new high.
Level:- Looking for support at 5450 . Resistance comes at 5700.
Summary:- Today market boom is the impact of the budget. Budget is in the favor of short term trade. Thus Nifty may touch a new short term high level. Nifty never made such a huge rally after budget from last 10 years. So this may go in the favor of bulls.
Market Outlook 03 03 2011
Nothing big bang was there in the Union Budget but it was a big bang day at the bourses as indices gained over 3%. The session began on a marginally positive note but momentum gathered as the day progressed. Auto and financial stocks led the rally as was mentioned in the previous newsletter but the velocity of the up move as witnessed in stocks as well as indices was totally unexpected. The monthly sales figures released by Auto manufacturers further fuelled the momentum. The biggest gains were seen in TVS Motors, Ashok Leyland, M&M, Maruti and Escorts. Bank Nifty zoomed higher by more than 4% on across the board buying in banking stocks. Short covering too aided the up move. Nifty finished the day at 5530 almost at the high point of the day. Nifty has moved up sharply and is now placed just below the strong and crucial resistance zone of 5545 to 5575. This single day up move of around 200 points has raised hopes for a positive bias over short to medium term. This is not to suggest that it would be a straight upmove without any corrections/consolidations. In fact, we could see some consolidation just around the current levels before making another attempt at taking out 5600. The global cues could trigger some kind of correction.
Technically, the levels to watch for on the downside are 5440 and then 5370-5380. We could retrace back to the second level but this level should provide strong support for the upward bias to persist. So, practically as a trader one should use declines towards 5440 and 5375 to take bullish positions in Nifty as well as stocks. Bullish pattern is seen in LIC Hsg and sustained moves above 202 could trigger strong up move. As mentioned in previous newsletter some banking and auto stocks are also looking positive and one can accumulate these stocks on decline.
Technically, the levels to watch for on the downside are 5440 and then 5370-5380. We could retrace back to the second level but this level should provide strong support for the upward bias to persist. So, practically as a trader one should use declines towards 5440 and 5375 to take bullish positions in Nifty as well as stocks. Bullish pattern is seen in LIC Hsg and sustained moves above 202 could trigger strong up move. As mentioned in previous newsletter some banking and auto stocks are also looking positive and one can accumulate these stocks on decline.
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