Year End ideas

The year gone by was a very good year in terms of market gain.

As the New Year is knocking at our door its time to go back and think about trading mistakes . Make a personal note of every trade and work out how you can improve further. Losses are part of our life. As a trader you should not try to score 10 out of 10 . If you are able to score 5-6 you have made it as a trader provided you have discipline to cut losses in time.

Texmaco has support at 139 and resistances are at 170-195.

Rail stocks are also showing strength. Kalindee Rail, Titagargh Wagon and Kernex Micro are buzzing.
Keep thesr stocks on radar particularly Kernex as this stock is consolidation with low volume and is trading in a range. A sharp explosive move is expected.

We wish all the readers of our blog a Very Happy and Prosperous New Year .

We would be happy to receive your comments and feed back.

Santa Claus Rally ???

Are our markets poised for a Santa Claus Rally ?? A Santa Claus Rally is result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.It occurs in the week between Christmas and New Year's Day.

Yesterday action seems to be indicative of this rally . Lets see how Nifty reacts at 5200 zone. On daily charts it making higher bottoms but not higher tops.
Last night on global markets Metal had a good rally . Resource Stocks buzzed all over the globe.


Gujrat Nre Coke has support at 65-69 and resistances are at 86-90-96

Global markets firm up , will we follow ?

Global markets have again bounced back despite all the odds. Lets see if our markets take a lead and follow it. Markets always have an element of surprise.It is also possible that Nifty may cross the hurdle of 5180 and reach a new high before this year ends or it may again slip down from those levels and forms another top. Well, we all come to know before the year end.

If Nifty is able to make a new yearly high then Banking stocks have to pitch in.


Canara bank has supports at 374 and resistances are at 415/ 432.


IDBI has supprt at 119 and resistances are at 131/138


REC is showing signs of continuation of the original trend - support is at 225 and resistances are at 255-265.

One should keep volumes low as long as Nifty is trading below 5080.

Be Stock specific with light volumes

Nifty is still giving whipsaw moves.
KPIT has support at 120 and resistance are at 150-180.

IVRCL Infra has support at resistances are at 380-390.

One should trade light and be quick to book profit/ loss.

Linda Bradford Raschke – 50 Time Tested Classic Stock Trading Rules

You can read trading advice from one of the great traders- Linda Bradford Raschke which makes an excellent set of rules for the trades.

The link is given below


http://www.tischendorf.com/

Not having a position is also a position

Nifty is still showing ranged moves with volatility and choppiness. The best way to trade this market is not to trade. Protection of capital is very important for traders.
In fact instead f " Stock Market " it has become " Market of Stocks"as we are seeing stock specific actions.
HCL TEch has hit the target mentioned bu us.

Ranbaxy and Tata Elxsi are consolidating . Keep these two on your radar and if they come near 20 DMA then they become a buy . Tata Elxsi looks interesting wih support zone near 220-230 and resistance at 270-290 zone.Ranbaxy lab has supports at 490. One should wait for the trade to come at them instead of rushing to buy .

IT Stocks at New High

Nifty is still stuck in broad range of 5000-5180. Globally all markets are struggling at the highs .
Dollar Index has bounced back to 77.

Nifty is ranged and choppy. IT stocks are making new highs. TCS, Infosys are trading at life time highs. Stocks which trade at life time highs keep on hitting new highs as they trade in a no resistance zone .

You can refer to our previous post .

http://swingtradingideas.blogspot.com/2009/11/stocks-and-sectors-at-life-time-high.html

HCL Tech has support at 325 and resistances are 358-370

Sugar may see some sweetness ???

Triveni has shown breakout with higher open interest. It has support at 105 and possible target could be 120-126.

On International Markets Sugar futures are surging up as adverse weather in Brazil may affect the production . We also updated it on our last post.

You can read about it by visiting the following links:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUaxSdgjFDUc

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avvVpQlj9fZw

Nifty is still in range . Its best not to trade Index futures at this juncture.

Bio con is on our radar with support at 270 and resistances at 290-298.Its has three down days and has taken support at 20 DMa. Health Care sector has good moves on Monday . Therefore, sectoral tailwind may also give Bio con some upward thrust.

Nifty is still in range

Nifty once again failed to break above the much hyped and much coveted level of 5180.
Its still in range . One should not try to trade in Nifty as its still volatile and choppy.

Berger Paints have shown breakout after long consolidation.It has support at 59 and resistance is at 75.

Banks stocks particularly PSU Banks have been hammered on last Friday. Lets see if they recover on Monday or not.
On International market Sugar futures prices are surging up but our sugar stocks remained muted to this development. Its difficult to find any secular sectoral movement . The best way to trade this market is not to trade breakouts and even if one wants to trade the volumes should be low and entries/ exits should be determined by using oscillators.

Focus on Individual Stocks

Nifty is still trading in a range.
435
Canara bank has supports at 395 and resistances are at 437.

Godawari Power is set for another up-leg with support at 149 and resistances are at 176-184

Its ranged and Dull Market

Nifty is still trading in range and its taking both long and short traders by surprise. Mid cap space is buzzing but one should follow time stops also. If you have bought some stocks om short term and if its not moving in any direction for the past five trading session then one should get out of it.
Some of our ideas have worked well. Nucleus Software has moved near its target zone.

Markets are trading in rage- trade light

Nifty is trading in a broad range of 5000-5150-5180. One should trade with small quantity ie the volume should be reduced by 60-70 %. This is a time when along with charts one should use oscillator like RSI or stochastic to trade at overbought/ oversold conditions.

Remember most of the money made in clear trending markets is lost by traders in these range bound markets.

Syndicate Bank has resumed its uptrend after correction.Support zone is at 90-92 and resistance zone is 96-98-103.

Focus on Mid Cap

Yesterday we saw melt down in Nifty . Metal sector saw pressure on the back of rising Dollar .Market may trade in a range . Individual stocks from Mid Cap pack may outperform the broader Indices.

NIIT Tech has support at 160 and resistances are at 180-200.

Dewan Housing Finance has support at 184 and resistances are at 209-219. It has resumed its uptrend after correction.

Time to trade light and book profits

Nifty is trading near major resistance zone. One should tighten stops and one should take profit in positions which are in the money and jettison extra baggage.

Polaris has support at 175 and resistance is at 200.

Markets pare gains

Nifty is unable to climb over the wall of 5180. It seems a major resistance now.
MID CAP IT stocks saw some action yesterday . Polaris Software broke out of a range.

Micro Tech ( 145-165), Nucleus Software ( 110- 138) looks to be gaining momentum.
Keep booking profits as market move near resistance zone

Markets may breakout

Nifty has been trading in a range for the past few weeks. One hurdle of 5120 is taken out . Now next hurdle is at 5180 . If this is also taken out then we may see more upside.Global cues are also supportive

Stocks of our New High list are doing well. Yes Bank has broken out of a range 260 is support and 285-300 resistance. Core Project has come out of slumber support is at 157 and resistance is at 214.
Our stocks trading ideas of Monday are doing well.
We used all the dips to buy rather shorting the market. Keep your analysis simple. Always trade in the direction of trend.

Markets are ranged

Nifty is trading in abroad range of 4920-5180 with 5100 zone as a major resistance zone.
GIC Housing Fin has moved up after consolidation support is at 90 and resistances are at 103-108. Graphite India has support at 67 and resistance at 80.

In ranged markets one should be quick to book profit.