Nifty outlook 29-May-2009

Flashback

Nifty opened near yesterday’s close and zoomed to short level, fell duly to first target and then moved up and stayed in a narrow range. As a result, nifty has moved into a high resistance area.

Star of the day was HDIL who from the short level fell to almost to target 1.

A single lot of HDIL should have given readers well over 50,000 rupees.

For Friday trading

Bear Level

Short nifty future around 4370 with stoploss at 4388 for targets 4320, 4290, 4260

Bull Level

Nifty future crossing 4388 buy on retracment to 4375 with 4355 as stoploss for targets 4400, 4420, 4450.

Trouble Series : Tata motors

Tata motors is unable to pierce through huge resistance at 349.

For thursday trading

Short tata motors around 343 with stoploss at 350 for targets 322, 305, 290.

Note that because the future is in a huge discount, i have given spot levels. Futures traders should take confluence from spot levels to do this trade.

NIFTY OUTLOOK 21-MAY-2009

Flashback

Star of day was tatamotors which followed the levels mentioned yesterday pretty much like a lost traveler following a compass. Even one lot futures contract should have fetched 75,000 Rs intraday for readers of the blog.

Bull Level

Buy nifty future crossing 4350 at retracement level of 4335 with stoploss at 4315 for targets 4380, 4420, 4445

Bear Level

Sell nifty future on break of 4230 at retracement level of 4255 with stoploss of 4287 for targets 4215, 4190, 4170

Looking good – DIVIS LAB

Divis lab has closed above a series of high resistance levels in a powerful upmove today. We can expect some follow up action in divis tomorrow.

1) Buy Divis on retracement level of 1082 with stoploss at 1050 for targets 1145, 1165, 1190

2) Buy Divis crossing 1145 at retracement level of 1125 with stoploss at 1100 for targets 1165, 1190, 1235

Note:
Divis is highly volatile stock with wild moves. Inorder to reduce risk, the trade should be done in spot in low quantities by the risk averse reader.

NIfty outlook 20-may-2009

Nifty like a baby learning to walk, tried to find a fair value. As a result, day traders had a field day playing along both sides.

Tomorrow we could witness a range contraction in the range of 4280 – 4530.

In such a case,one could use a simple stochastics crossover in 30 minute chart for trading nifty tomorrow.

Looking Good – Tata Motors

Tata motors, although closed in the minus, took support at the lower end of the channel (see chart).

For wednesday trading

1) In case of gap down buy tatamotors at 293 with stoploss at 282 for targets 319, 335, 360

2) Buy Tatamotors crossing 322 at retracement level of 315 with stoploss at 304 for targets 335, 360.