Nifty is still in range with downward biases

We have been of the view that the rally may fizzle out soon and Global markets are also showing topping out pattern especially as we head into September, historically a rough month for the stock market.Metal , Oil will remain under pressure but Mid Cap will be place to hide.
REC has again broken out of a range. Sugar stocks has shown resumption of uptrend after correction. Textile stocks are also strong on chart. Arvind Mill, Balrampur Chini REC are safe bet.

trading as a job and how to hadle fear

Trading is a process which evolves through lots of practice. Money management, descipline and a system are essential to become a successful trader. Once you are into your comfort zone it becomes fun.
I am passionate about my trading . Choose a job you love, and you will never have to work a day in your life- Confucious
Coming to handling of fear I am putting an article by Ron Wagner of Pristine.com rwagner@pristine.com
How to Handle Fear
Have you ever felt the inability to pull the trigger to get into a trade at the right moment? Then chased the stock only to your detriment? Have you ever taken profits way before your target because the stock merely "jiggled," only to sit on the sidelines, watching your stock run to its original target? If so, you are experiencing the effects of fear. You are not alone.
Psychological aspects make up 85% of the trading equation. Fear is one of the aspects. Ideally, we would all be "emotionless" traders. No fear, no greed, just pure discipline. While this may be a worthy goal, not many can take the leap to this level just because I say you need to. While most people cannot eliminate fear, there are some things you can do to keep it in check. Here are some suggestions.
1. First, the greatest enemy of fear is a well-laid plan. Have a trading plan that you use that clearly spells out what strategies you will play, how many shares you will play, and how much money you are willing to lose on a single trade. There are many aspects to this plan. These are some of the basics.
2. Next, plan out the individual trade. When you see a trade come up that fits into your plan, study the play to find the proper stop loss and target. Play the proper share size so a stop out does not violate your maximum loss per trade. Make your decisions before the trades hits while you have a clear level head, and then follow the plan without question. You must "execute" properly the trades you have "planned."
3. The next step may be the most important. Let your plan go to work. Let the play finish. Unless something changes about the trade, let it come to its natural conclusion, either the target or the stop. Think about it. You have planned a trade while you had a clear head. You believe the trade is worth your hard earned money. Give it a chance to finish.
4. There are sometimes reasons to end the trade early. Perhaps there has been a change in market environment. For example, you might be long in your play and the futures just took out key support. Or maybe you planned on reaching the target by reversal time and it is almost at the target with the reversal time now here. You may use 'bar by bar' analysis (taught in our Trading the Pristine Method Part 2 Seminar) to judge an early exit. However, these are the minority of times. The vast majority of times you should leave the play alone. Especially if you have chosen as you should the highest of quality and probability trades. Do not be jiggled out by your Level 2 screen. The chart pattern is by far more important.
5. If you are still so nervous that you can't handle it, try this next. Sell half the position at an appropriate reduced target. Get use to taking partial profits and this will let you have confidence letting the back half hit the target. This will also be likely to put you in a 'no lose' situation with the trade, giving you some patience. Good traders sell incrementally, on the way up all of the time.
6. If that does not help, then you need to cut back on your share size (or find a trade with a smaller stop) so the size of the potential loss does not trigger your "pain factor."

Where is Dow Jones headed ??

Sometimes one should know the other side of the coin.Please go through the link:

http://jessescrossroadscafe.blogspot.com/2009/08/us-equity-markets-look-dangerously.html

Its Buy on Dip , the risk is higher now

On Friday Nifty has made a new high and was able to trade above the much hyped resistance level of 4731. But we should not forget in this Frenzy that Nifty has gained more than 80% from March 2009 low and this breakout may fool and trap those who went long on this breakout. The risk is higher but now and market is heavily loaded on long side. US and China markets are showing signs of crack. It’s better to stay away from Nifty for time being.

Individual stocks particularly from MID Cap stable will see some actions in the coming week .ICSA, Rolta, Patni Comupter, Exide, Shanti Gears, Graphite India , Berger Paints , GMDC and Ruchi Soya are some of the stocks you should keep on your radar for going long in next week. But you should buy half of your normal quantity.

Mphasis is on new ground

We have posted on our blog of 9th August about Mphasis. It has moved 11o points since then . On every dip its a buy.

Nifty may retest 4730 and a breakout may see it above 4800

Nifty has come out of the short term downtrend after touching the lower band of the range. The upper level of this band is 4730 which Nifty is expected to breakout backed by firm Global cues. Mid Cap IT like 3 I Info, Rolta, Polaris , Sasken , Mphasis are poised for further upmove, Mid cap Pharma like Orchid has also broken out of the range. Tea stocks are also showing strength on charts.Old CG stocks like Punj Lyod, Welspun Guj and Voltas are also poised for further breakout.If 4730 is taken out then we we amy a lot of frenzy in these stocks. Watch out Neyvelilignite and REC.Rec is trading in unchartered terrotory and may see 250-270 levels.

Time to take profit home

The Global rally would result in Nifty retesting the key resistance level of 4730. We had suggested to buy Auto, Sugar and Mid Cap IT stocks on dips. Now its time to take money off the table and wait for another dip .

Technical view on Chinese Market

Is the chinese growth story over ??
This link gives some technical insight.

http://online.barrons.com/article/SB125050578543736561.html

coming back to our market Nifty is ranged bound with a broad range of 4350-4730. Mid Cap IT is the sector to watch along with Sugar sector.

time to buy auto stocks

Markets seems to be getting back to retest the recent highs. Its time to buy Hero Honda, Maruti and Tata Motors as they have had a very sharp correction and are on the verge of a gaining the upward momentum again. The sector is again coming back in top gear and pick up up the speed soon

Expect a bounce back on Monday

Global markets had a smart recovery led by Dow Jones. Most of the market participants went short on Friday; strong global cues will result in gap up opening on Monday. Trapped short will fuel the momentum up. From IT sector-Mphasis is poised for further up move, Auto sector, Sugar Stocks may see a strong recovery. Bharat Forge , Andhra Sugar, Dharni Sugar , are showing strength on charts. If global cues remains favorable we may see Nifty scaling past 4731 and chances are it may retest 4800-4850 - a key resistance zone.

Is China story over?

Nifty has been trading in a narrow band of 4617 -4731 for the past three days. A breakout/ breakdown from this range was expected. Today Nifty failed to trade above 4731 and plunged sharply to close below the lower range of the band. Going forward a lot will depend on global cues as there are no domestic triggers to take Nifty above 4800-4850 at least in short term. Metal, IT, Auto the sectors which were the leaders today saw exhaustion.
Talking about Asian Tigers it’s interesting to read this article:
http://online.barrons.com/article/SB124944593950307091.html?mod=barrons