Stock to trade 16 03 2011

• GLAXO :- TA Turtle breakout in GLAXO. Sell with stop loss above 2105.
• Andhra Bank :- NR7 pattern in Andhra Bank. Buy above 133.50, Sell below 131.

Nifty trading at its lower end of trading range

Nifty Watch:- Today Nifty opened at 5393 with a huge gap down of 159 points and touches its low at 5375. After that Nifty find some support from bullish and move up at 5504 with an increase of 129 points and finally closed at 5461 with a gain of 65 points to its day open.
Nifty remained in its large trading range (5400 to 5600). but trading at its lower end at 5400. This suggests that a breakdown below 5400 resumes the bear market.

Trend:- The short term trend is up. Below 5400 the short term trend will down. The Intermediate trend remains down. TA Insync (55-5) is has been in an uptrend. It is moving up at 32.37. Nifty is very near to its overbought level. This suggests that Nifty will move down very soon.

Level:- Looking for support first at 5500 and then at 5400 . Resistance comes at 5600.
Summary:- Nifty in a trading in a large trading range(5400-5600). Market is very choppy. We strongly advise investors to stay away the market.

DERIVATIVE PICK 16 03 2011

• RELIANCE ( CASH – Rs.1037.25) : After a very long time, Reliance Industries has clearly displayed leadership status pulling the market from the morning lows singlehandedly. Buying is advised above Rs.1050 for a target of Rs.1062 and Rs.1074. Higher targets of Rs.1083-1085 is also possible. Stop Loss of Rs.1029 should be kept. The time frame of the trade would be around 7-8 trading sessions.

• BHUSAN STEEL ( CASH – Rs.437.55) : The stock has shown a lot of strength and the counter saw buying form operators and funds in a big way. Buying is advised above Rs.448 for a target of Rs.456 and Rs.465. Higher target of Rs.476-478 is also possible. Stop Loss of Rs.437 should be kept. The time frame of the trade would be around 7-8 trading sessions.

Market Outlook 16 03 2011

Indian market was an island of relative calm amidst crumbling global indices. Taken in isolation one would be tempted to believe that market collapsed as it opened almost 150 points lower and closed almost 1.5% lower. But, if one just looks around the globe it would appear that Indian markets held up nicely even as the other Asian markets lost around 4%. Japanese market was down over 12% as life came to a standstill on growing concerns about nuclear radiation spread. Even the European markets were trading lower and DAX was down almost 5%. RIL led the rebound again as Nifty rallied more than 100 points from the opening levels. Some profit taking and selling in the last 60 minutes pared almost half of the intraday gains as Nifty closed at 5450. RIL witnessed heavy volumes and was up almost 2.5% before finishing the day almost 1.9% higher at 1038. Tyre stocks were also in demand as rubber prices continued to dip. Apollo Tyres, MRF, JL Tyres and Ceat were up significantly on good volumes. Reliance Capital too managed to shrug off early morning blues and closed in the positive. Breadth was negative while volumes picked up as the day progressed. Nifty managed to close around 5450 despite global turbulence and has shown significant resilience over past couple of sessions. But, things may change if the global negative sentiments persist. Technically, Nifty was able to sustain above the intraday support zone of 5350-5370. Even on closing basis the supports were maintained. RIL continues to provide strong support and it’s good to see the stock building on momentum rather than struggle around resistance zones. The volumes are also good and it seems stock could be headed higher. Bhushan Steel is showing strength and is looking good for another 8-10% rise over next few sessions. But, The Auto and metal counters are not looking positive and may be headed lower. Bajaj Auto seems to be an exception and one could buy it on dips. Nifty has immediate support around 5415-20 while critical support lies at 5350-5375.