Monday, October 31, 2011

NIFTY HAS TASTED 200-DAY AVERAGE PRICE


Following the international markets Nifty has opened with huge gap-up on Friday. Nifty has tasted an intraday high at 5399 and was trading around 5350 level whole time. Metal stocks rocked because of heavy short covering after Europe eases. Nifty has faced resistance around 5400 level on its 200-day moving average. Nifty had breached its 200-day moving average on 2th may 2011 and had not closed above this line so far. U.S. markets were flat to negative on Friday’s session while Asian markets are also trading negative in morning. SGX Nifty is trading at 5380 level. Nifty is little overbought at this stage. Nifty has another strong resistance at 5415 level. A trend line is occurred at 5415 level and 200 –day moving average also on this level as showing in daily chart of Nifty. Nifty may face weakness at this level.  Market is expected to trade flat for today’s session. Trading in stocks is advised for today.


Saturday, October 29, 2011

CRUDE OIL IS FACING RESISTANCE AT $ 94.65


After the Europe zone positive news, all the equities and commodities have pulled up in last four trading sessions. Crude oil also pulled over its resistance level around $90 international markets and breached its 100-day moving average price. Crude oil is now trading around its 200-day moving average price and faced resistance before closing on Friday. Momentum indicator MACD is showing strong buy signal for crude oil. If Crude oil sustains $ 90 in few sessions, it may breach $ 95 and taste the $ 100 once again. In Indian market, Crude oil is trading over 200-day moving average price and has a strong support of Rs. 4371 level. Buying in Crude oil is advised at this level with the strict stop-loss of $89.50.


Friday, October 28, 2011

NIFTY HAS BROKEN-OUT UPSIDE


Nifty has closed above its strong resistance level on Wednesday in a special session of Muhurt trading. Thursday was the holyday of Indian markets while U.S. and European markets gained almost 3% - 5% after the bailout package has been announced of around $1.4 trillion by the private bonds holders of Greek debit and recapitalizes European banks. Euro jumps a huge one day gain after March 2009. Asian markets are also gaining in early morning .Singapore Nifty is trading at 5447 level around 206 points up closing of Indian market .Nifty has 200-day moving average on 5410 level in daily charts. Closing above the 5410 level will sustain uptrend in Nifty. Auto and IT sectors may outperform in this rally. Profit booking may come on higher levels. Avoid short sell in Nifty now.


Tuesday, October 25, 2011

NIFTY MAY BREAK 5200 LEVEL IN NOVEMBER SERIES


It is expiry of Nifty future and option for October series today. Heavy call writing in 5200’s strike rate marked a strong resistance level for Nifty. Nifty could not breach this level in entire series. A range shifting from 5200 level to 5400 level has seen in November series as Nifty option data shows. Ahead of the European announcement, Asian markets climbed sharply on Monday. After the gap-up opening Nifty has faced resistance 5150 level again and closed 5098 level near day’s low. New shorts have been added in 5200 strike rate’s call in Nifty options. Profit booking is seen in 5100 strike rate’s call. Nifty may expire between 5100 to 5200 levels on Tuesday. Wall Street added heavy gains second day in a row. Asian markets trading mix today. Singapore Nifty is trading flat and high volatility is expected today. Nifty may buy above 5200 level for the target of 5350 level. 


Monday, October 24, 2011

NIFTY MAY OPEN WITH GAP-UP


Nifty was volatile in Friday’s session and it was facing resistance at 5100 level. After the whole choppier session Nifty had closed at 5049 level near the day’s low. A strong opening of U.S. markets European markets climbed at evening. U.S. markets closed 2.31% up with one day biggest gain after October 2010.Asian markets trading up after the European leaders tried to assure market’s participants. SGX Nifty trading at 5100 level which is a resistance level and Nifty cannot breach 5100 – 5150 level without any huge positive trigger. U.S. can be another downgraded by moody or lynch. Bank nifty is also following the index and facing resistance 9850 levels. Nifty may take direction after opening the European markets. Nifty may volatile due to expiry in this week. Auto stocks may participate in the rally from this level. Buy only selected stocks with strict stop-loss.



Saturday, October 22, 2011

COPPER OUTLOOK


After the sharp falling from Rs 429 Copper has touched Rs 332, which is its swing low. Copper has slower demand in international markets due to global uncertainty. Copper is showing a downtrend in daily charts and has a strong resistance at Rs 374 -380 levels. In weekly charts Copper is trading near 200-day moving average, which is making a support zone for Copper. If Copper breached $ 2.99 level at Comex then Copper may fall more at $2.45 level. In Indian market Copper has strong support at Rs. 330-326 levels. Copper may touch Rs. 300 if Copper breaches Rs 326 on Mcx. Copper may remain range bound between Rs. 332 to 375 levels. Only short sell is advised in Copper at higher level with the strict stop-loss of Rs. 380.



Friday, October 21, 2011

5100 LEVEL BECOMES A STRONG RESISTANCE FOR NIFTY


Nifty was facing resistance at 5150 level so far. Amid the European debit crises markets are choppier. Nifty is in the range of 5000 to 5150 from last couple of trading days. So many gaps are occurred near 5100 level in hourly chart of Nifty, which means Nifty has made a strong resistance area around 5100 to 5100 for it. There are not any strong triggers from International markets to lift Nifty upside and breach 5150 level in few days. U.S. markets were trading mix on Thursday night while Asian markets are flat. 5100 and 52000 strike rate’s calls have added more shorts in Nifty option. Momentum indicators are on its support but negative crossover in simple moving average lines mark weakness in Nifty. Avoid buying in Nifty at this level. Trade only selected stocks at this level. 

Wednesday, October 19, 2011

HERO MOTOCORP BUY ON DIPS


Hero Motocorp has reported net profit of Rs 604 Cr better than expectations in September quarter in 2011 while Rs 506 Cr was in same quarter last year. A 19.4% year t o year profit growth was posted by company and sales jumped 28% to Rs 5784 Cr from Rs 4511 Cr. Expenses of the company rose 29.6% to Rs 5190 Cr from Rs 4005 Cr because of depreciation increased 361% to  Rs 280 Cr from Rs 60.7 Cr during the same period last year. Hero Motocorp may outperform in FY 12. Stock has support on Rs 1930 level, currently stock is trading below 50 days moving average. Stock can buy for long –term. Target for the stock is Rs 2500 in 6 to 7 months.

Tuesday, October 18, 2011

NIFTY MAY REMAIN WEAK DUE TO GLOBLE WORRYS


European markets dropped after the little hope to fix the debit crises on Monday. Indian markets were consolidating amid the news but U.S. markets sank sharply after opening. Banks stocks are the big decliners in European markets. China showed Gross Domestic Product data 9.1% in third quarter, lower from expectations. Dow has fallen around 2% last night. Asian markets trading lower now. SGX Nifty wiped off 42 points and trading around 5080 levels. 5100 and 5200 strike rate’s call added more shorts in Nifty options on Monday, Which marks Nifty may remain weak for few days. Nifty has crucial support on 5050; decline below this level Nifty may cut off more 100 points. Nifty can be short sell below 5050 levels with strict stop-loss.


Monday, October 17, 2011

NIFTY MAY TOUCH 5180 TODAY


Strong signs from European and U.S. markets guide Nifty to touch its trading upper band around 5170.Amid the global economic doubt all the markets had dived. Because of small recovery in U.S. unemployment claim data and European debit crises, markets had rallied. Asian markets are following the Wall Street’s gain and trading higher. Singapore Nifty also trading higher on 5160, which is a strong resistance zone for Nifty. Technically Nifty has negative divergence in momentum indicators and a strong support at 5100 level for today. Nifty option data shows a range of 5100 to 5200 may be for two to three days. Closing above 5200 with high volume brake-out, Nifty may add more 100 points and it may taste 5300 level. Avoid trading in Nifty on these levels. Take position only in selected stocks.

Sunday, October 16, 2011

HOW TO DO FUNDAMENTAL ANALYSIS OF STOCK?


Fundamental analysis is a broad subject, it cannot describe in few words .Basically stock prices depend on market movement called momentum but Fundamentals are the ground for investing. In fundamental analysis, analysts review the business model, its competitors, earning growth, sales growth, management, debts and Future prospects of company. Here, some important facts are described briefly.
Business model and Management
This is the basic fact for analysis of a company. What is the business model of company? How does company earn money? What is the demand of product, which company sells? Answers of these questions will help to know about position and status of company in market. Growth of a company depends on its product and management. A strong management helps growth of company year by year.  
Financial statement
Financial statement of a company does the key role in analysis. If company reports the sales, profit and revenue growth year to year, the company is growing. Growing E.P.S. helps to increase the stock prices in markets. Expenses of company must grow with sales of company.
Price to Earnings Ratio
Price to earnings ratio acts the key role to know fair value of stock. Most of analysts trust it. A lower P/E and high profit growth companies are the choice of big traders. 

Saturday, October 15, 2011

SILVER HAS RESISTANCE ON $ 32.50 - $ 33.50


Silver had fallen sharply from $ 40 to $ 26.15 in three trading sessions last month. After worst decline, Silver has bounced back and touched $ 33.10.Silver is trading near this level from few days. Silver was highly oversold, when it touched $ 26.15. Now Silver is trading in its resistance zone. Silver is in extreme downtrend in daily charts, it is trading below its 200 day’s moving average line. MACD is also confirming its downtrend in daily charts. In weekly charts Silver has taken support from its 100 day’s moving average and this is a strong/crucial support zone for long-term charts. MACD is showing weakness in weekly chart also. Any further decline in Silver prices below $ 26, it will confirm deep downtrend in Silver for long-term. Silver is also facing resistance around $ 33 area. Silver will have to close over this level to add more in its prices. Equity markets have recovered in all over world after the strong European clues, but Silver has not recovered so far. Any bad news from European markets may hit silver prices again. It may taste $ 26 in near term again. Silver may short sell on $ 32.50 level with the strict stop-loss of $33.50 in closing basis. For Indian markets stop-loss level is Rs 57000.



Friday, October 14, 2011

NIFTY MAY CONSOLIDATE BETWEEN 5000 to 5150 LEVEL


Strong rally of European and U.S. markets helped to pull Nifty upside. Nifty tossed 350 points from its bottom made in last week. Nifty has tasted 5150 once again, which is the upper band of the trading range of Nifty. Hourly chart of Nifty shows a strong resistance zone at 5160 -5200.Nifty may consolidate around this level for few days. Nifty 5200 strike rate’s call has maximum positions which mark that traders are not comfortable to pull Nifty over 5200 level now. Traders had added short positions in 5100 strike rate’s call on Thursday. U.S. markets mixed last night, while Asian markets are trading in negative zone. Fitch has downgraded four European banks and placed seven more banks to review for downgrading. European markets may remain weak after this news. Only short positions can be added at higher levels in Nifty.


Thursday, October 13, 2011

RESULT ANALYSIS – INFOSYS


The second largest software company of India, Infosys has reported   9.72% growth in consolidated net profit for the September quarter Rs 1906 Cr against of Rs 1737 Cr in the same quarter of previous physical year. Company also has reported a revenue growth of 16.58%, from Rs 6947 Cr to Rs 8099 Cr. Infosys increased EPS  guidance  Rs 141- 143 from  Rs 128 -130 for FY 12 .Stock closed at  Rs 2679.35 on Wednesday at NSE. Price to Earnings Ratio of company is 18.86 for FY 12, which is comfortable for investing in stock. Stock has closed above its 100-day moving average line with high volume brake -out .Stock may touch Rs 2830 in few weeks. Buying is advised in Infosys. 


Wednesday, October 12, 2011

NIFTY HAS FACED RESISTANCE AT 5050 AGAIN


Strong signals from U.S. and European markets have forced Nifty to open a higher note .With gapping of 60 points Nifty has opened on its resistance zone around 5040 and could not comfort at this level. After a gap –up opening Nifty has made lower top and lower bottom in intraday on Monday.  The supply was coming at higher levels in Nifty. Today Nifty may consolidate between 4935 to 5000 level. Asian markets are showing weakness in early trading after indication of U.S. markets, which have mixed last night. Result season will start from Infosys today, which is the main trigger for Indian markets. Trading in stocks is advised on this stage only.

STOCKS RECOMMENDATIONS FOR 12th OCTOBER

These stocks can buy with strict stop-loss.If stock open its first target then it can buy for second target.


STOCK
STOP-LOSS
TARGET
TARGET
TARGET
TATAMOTORS

             174.65

    177.85

    179.45

    181.95

BHARTIARTL

             373.73

    379.25

    382.45

    387.60

SESAGOA

             220.45

    225.95

    228.75

    233.20

RECLTD

             174.83

    180.85

    184.05

    189.30

JUBLFOOD

             794.00

    831.60

    848.60

    876.10



These stocks can short sell with strict stop-loss.If stocks open at first target then it can be sold for second target.

STOCK
STOP-LOSS
TARGET
TARGET
TARGET
IRB

             167.35

    164.50

    163.35

    161.30

DISHTV

               79.55

     76.95

     75.75

     73.80

TATASTEEL

             437.00

    431.00

    428.00

    423.25

EDUCOMP

             276.00

    266.90

    262.60

    255.65

HCLTECH

             411.95

    400.75

    395.65

    387.35


Tuesday, October 11, 2011

STOCK WATCH FOR 11th OCTOBER


STOCK
STOPLOSS
TARGET
TARGET
TARGET
TATAMOTORS
166
172
175
180
JPASSOCIAT
72.90
73.90
74.40
75.50
HINDALCO
127.5
129.20
130.30
132.15
IDFC
119.40
122.85
124.40
126.9


























 These stock may buy for today with the strict stop-loss IF stock opens on its first target then it can be buy for second target.