Stock To Trade 25 02 2011

• Asian Paints :- TA Turtle downside breakout in Asian paints. Sell with stop loss above 2453.
• AIA Eng :- Oversold TA Insync in AIA Eng. Buy with stop loss below 325.

Market Outlook FOR 25 02 2011

It was a day to forget for bulls and day to cherish for bears. Markets opened on a slight negative note but it was a painful slide throughout the session. The levels were broken with utmost ease as there was not any attempt whatsoever by the bulls. Nifty lost a whopping 200 points before closing with a loss of around 175 points. It was the biggest single day drop seen in many months. No sector or heavyweight was spared as gainers were difficult to spot. The Feb series ended on an extremely bearish note with no buildup whatsoever ahead of Budget. Nifty has now gone below even 5300 while we expected Nifty to find some support around 5375-5400. Nifty is now precariously placed very near to the previous low of 5177 and the momentum as well as the technical structure of many heavyweights suggests that this level is not safe anymore and we could be headed lower towards 5000. The levels of 5375-5400 that were expected to provide support would now act as strong resistance. Any attempts to any technical rebound would find resistance around 5375-5380 and then around 5440-50

Todays Sentence

I’m always thinking about losing money as opposed to making money. Don’t focus on making money; focus on protecting what you have. – Paul Tudor Jones

Stock to trade 23 02 2011

• Pantaloon :- NR7 pattern in Pantaloon. Buy above 274, Sell below 264.
• L&T :- 70 TA Turtle downside breakout in LT 30 min chart. Sell with stop loss above 1635.

Choppy market, Ready for big move

Nifty Watch:- The Nifty opened at 5478 with a gap of 51 points. The Index remained choppy for whole day. It touched its day high at 5519. After that it made a low at 5427 with a decrease of 92 points to its day high and finally closed at 5475, almost at yesterday's close. Overall it’s a choppy market today. Nifty made an inside day pattern today. The Inside day suggests indecision in the market. After such periods of indecision, a big move usually comes about. If the nifty moves above 5520 then it can see an up move, while a move below 5410 should see the beginning of a
downtrend. Traders should watch for these levels to break. Between 5410 and 5520, the market is likely to remain choppy and almost untradeable.

Trend:- The short term trend remains up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average but both are coming closer.
TA Insync(55-5) is now above the level of -45 and still moving up. This indicator is suggesting upside momentum.
Level:- Looking for support at 5400, then 5350. Major resistance comes at 5550.