Are we at short term bottom ???

Nifty is trading above its 150 Dma which is at 4820. The Dubai crisis panic low is at 4806. Its an important pivot. Nifty made a low of 4766 on Friday and managed to close above 150 Dma.Its will be safe to assume that Nifty has made a short term low of 4766 if Nifty is able to trade above 4800-4850 .

How do we trade from here ? Well, our idea is to trade Index on long side with Index stop at 4800 and for all short term trade with index stop at low of Friday ( 4766). Some of stocks which show a short term resumption of uptrend are:

Stock Support Resistance

Shipping Corporation 150 170

NeyveliLignite 144 165-174

Rcom 165 190

Biocon 258 300

Yes bank 240 280


Most of these stocks are trading near 150 Dma. Tin plate did not tank below 50 DMa in this meltdown and didnt come down with increase in volume . It means no distribution is taking place and the stock has some more upside left.Support is at 70 and resistances are at 95 -125.


The Association of Technical Analysts, India is organizing a guest lecture on Feb 20, in Delhi, at PHD House. Full details can be had at www.taindia.org The topic is related to automated trading systems .

Those readers who live near Delhi have a very good opportunity to attend this lecture

Breach of " Laxman Rekha" of 4950

We had a stop loss of Index Level of 4950 for all short term long trades. This stop was breached and we exited at minimum damage. But the ferocity of Bears was very sharp and brutal. The way some of the large caps were hammered is a testimony of things to come.


Corrections do take place in up trending markets but this is very sharp. Markets have so far not shown any sign of strength .

Meanwhile, its interesting to read about what Roubini has to tell about markets.

http://www.cnbc.com/id/35078010

Short Covering is Expected

After three days of downfall and looking at the expiry ahead , Nifty is expected to witness short covering. The pull back can take it back to 5080-5120. The recent low of 4950 is Laxman Rekha for short term time frame. One should keep this index level as stop for all short term long trades.

Globally US markets have started to bounce back on the back of Consumer Confidence Increase and rise in U. S. retail sales.
TCS , Rolta and Allahabad banks look strong on charts and if market pulls back then these stocks may also bounce back .
TCS has support at 730 and resistances are at 804-829.

Rolta has support at 180 and resistance is at 206.

Allababad Bank has support at 130 and resistance is at 144.

One should keep volumes low as Nifty is still trading below 50 DMA and its in short term downtrend.

Happy Republic Day

We wish all our readers 'Happy Republic Day '

Ideas for the week

Nifty has broken down down a range it was trading for the past three week.The pivots are at 4800 and 4940 .

Some the ideas for the next week are.

Bio Con - Support 270, Resistance - 304

Ajanta Phrama - Support 125, Resistance - 170

Peninsula Land -Support 76 , Resistance - 97

JK tyres -Support 160, Resistance - 180- 193

We are also trying to provide our readers some more information and resources so that this blog become useful for them. From next month onwards we will explain all our ideas with charts so that readers will come to know why we have selected a particular stock .
keep on learning.

You can't learn how to do it without doing it

Six Trading Coach Fundamentals by Dr.Brett Steenbarger

Nifty is still in range.
Sugar stocks have benn hammered a lot. Renuka sugar has touched 100 DMA and found support there. Support is at 210 and resistances are at 230-240.

Meanwhile, you can read Six Trading Coach Fundamentals by Dr.Brett Steenbarger

Here are some of the best practices that Dr.Brett Steenbarge sees among traders who have made a career of trading, sustaining success across years of shifting market conditions.


http://traderfeed.blogspot.com/

PSU Sector

PSU Sector is buzzing. One should wait for pull back to ride the trend.

Rolta has given good indication on charts to go long with stop of 198 and resistance at 220-243

Trading Ideas for the week

Last week Cement and IT sector had a good run. The momentum is expected to continue further.

Ranbaxy lab is trading in a range of 505 to 527 for the past six days.If it is able to sustain above 522 then it could reach 533-538 - 563 . Chart support is at 505 and pivot support is at 498


Nagarjuna Construction is also showing strength on chart. Support is at 170 and resistances are at 184. If it is able to trade above 184 then it may face next hurdle at 205-220

Have fun and keep on reading. I have read "Super Trader By Van Tharp " this weekend and found it useful for traders.
Have fun

Bankers Without a Clue- Paul Krugman

Bankers Without a Clue- Paul Krugman

http://www.nytimes.com/2010/01/15/opinion/15krugman.html

IT Stocks are at new high- Power of charts

Readers and followers of this blog have been reading about our view on IT sector often.
At the risk of being repetitive we would like again to emphasize the power of charts .
We are always learning about the new concepts and ideas about swing trading and its our endeavor to make retail traders and investors aware of these ideas so that they do not have to struggle the hard way which we had to face. It does not mean that success will come easily. One has to work hard . Whatever stocks we discuss here one must and should see the charts and try to understand the rationale behind it.

One can refer to our previous post by clicking this link:

http://swingtradingideas.blogspot.com/2009/12/it-stocks-at-new-high.html

Have fun

Traders Goals For 2010-

Kirk report has given a food for thought for professional traders.

You can read it by clicking the given link:


http://www.thekirkreport.com/

Avoid buying breakouts

Nifty is still ranged and stock specific action particularly in mid cap segment is taking place.
One should avoid buying the breakouts as breakouts are fizzeling out. One should wait for dips to buy.

Mcleod Russel is in correction mode for the past three days, keep it on your radar and study the chart and buy when it trades above yesterdays high.
Zen Tech looks interesting on charts. Support is at 276 and resistances are at 304- 322

Be stock specific in Year 2010

This year the market may not give you the kind of returns it gave last year. Index may consolidate this year by trading in a range.
Stock specific action will be there.

Yes Bank has support at 260 and resistances are at 278-285.

Berger Paint has support at 60 and resistances are at 67-71.

Keep on booking profit at regular intervals

62 WAYS TO MAKE 2010 YOUR BEST YEAR YET

As a trader and more important as a good human being we should always strive to get best out of our life. I am quoting 62 WAYS TO MAKE 2010 YOUR BEST YEAR YET By Robin Sharma

1. Remember that leadership isn't about your position. It's about your influence.

2. Get fit like a pro athlete.

3. Lift people up versus tearing people down.

4. Protect your good name. An impeccable reputation takes a lifetime to build. And 60 seconds to lose.

5. Surround yourself with positive, ethical people who are committed to excellence.

6. Remember that even a 1% daily innovation rate amounts to at least a 100% rate of innovation in 100 days.

7. Believe in your dreams (even when others laugh at them).

8. Measure your success, not by your net worth but by your self worth (and how happy you feel).

9. Take an intelligent risk every 24 hours. No try-No Win.

10. Read "Buffett: The Making of an American Capitalist".

11. Watch "Man on Wire".

12. Regardless of your title at work, be a team builder.

13. Remember that business is all about relationships and human connections.

14. Say "please" more.

15. Say "thank you" more.

16. Know your Big 5: the five things that need to happen by the end of this year for you to feel its been your best year yet.

17. Read your Big 5 every morning while the rest of the world is asleep.

18. Read "As You Think". At least twice this year.

19. Be willing to fail. It's the price of greatness.

20. Focus less on making money and more on creating value.

21. Spend less, save more.

22. Leave everything you touch better than you found it.

23. Be the most positive person in every room you're in.

24. Run your own race.

24. Stay true to your deepest values and best ideals.

25. Write a handwritten thank you note to a customer/friend/loved one every day.

26. When you travel, send love letters to your kids on hotel stationary. In time, they'll have a rich collection to remember your travels by.

27. Read "Atlas Shrugged".

28. Be a problem solver versus a trouble maker.

29. Rather than doing many things at mediocrity do just a few things-but at mastery.

30. Honor your parents.

31. Commit to doing great work-whether anyone notices it or not. It's one of life's best sources of happiness.

32. Give more than you receive (another of the truths of happiness).

33. Have your 1/3/5/10/25 years goals recorded on paper and review them weekly.

34. Be patient. Slow and steady wins the race. The only reason businesses that went from zero to a billion in a year or two get featured in magazines is because 99% of businesses require a lot more time to win.

34. Underpromise and then overdeliver.

35. See part of your job as "a developer of people" (whether you work in the boardroom or the mailroom).

36. Wear your heart on your sleeve. When people see you're real, they'll fall in love with you.

37. Be authentic versus plastic.

38. Read "The Alchemist".

39. Remember that life wants you to win. So get out of your own way.

40. Consider that behind every fear lives your next level of growth (and power).

41. Eat less food.

42. Drink more water.

43. Rest when you need to.

44. Read "SUCCESS" magazine.

45. Write your eulogy and then live your life backwards.

46. Demand the best from yourself.

47. Remember that the more you go to your limits, the more your limits will expand.

48. See everything that happens to you as an opportunity to grow (and therefore, as a precious gift).

49. Be obsessed with learning and self-development.

50. Become comfortable alone (you are the only person you get to be with your whole life).

51. Smile. It's a stunningly effective way to win in business and life.

52. Reflect on the shortness of life.

53. Be bold when it comes to your dreams but gentle with those you love.

54. Remember that success is dangerous because it can kill drive/innovation/passion and going the extra mile. Be successful yet stay hungry.

55. Read "The Autobiography of Benjamin Franklin".

56. Be of deep value to this world.

57. Own beautiful things but don't let them own you.

58. Use excellent words.

59. Laugh more.

60. Don't complain, gossip or be negative.

61. Plan as if you'll live forever but live as if you'll die tomorrow.

62. Feel free to pass these lessons on to those you want to help.


Written by Robin Sharma, January 3, 2010. For more information visit robinsharma.com. Robin's new book "The Leader Who Had No Title: A Modern Fable On Real Success in Business and Life" will be published by Simon and Schuster in March. Many of the ideas above come from it.

Tea Stocks

Today tea stocks are showing reat momentum.

Mcleod Russel, jayshree Tea, and harrison Malyalam are buzzin

 

 

Harrison Malyalam has support at 130 and resistances are at 150-160-168

 

Mid cap on focus

Mid Cap sector will remain on focus.


3 I infotech has support at 85 and resistances are at 94-98-104


Mahindera Forgings has support at 123 and resistances are at 150-163

Crude Oil On rise

Crude Oil is trading near $ 82.

Keep Oil stocks on your radar
Cairn support of 278 resistance at 300-305

Essar Oil has supports at 137 and res at 152-158.

Trading Ideas for the Week

Hope you had a nice holiday.

Before the start of the year one should read about Trading Success , Fear and Endurance


http://traderfeed.blogspot.com/2010/01/trading-success-fear-and-endurance.html

We have to cope with extended trading hours from the start of this year.

Some of the trading ideas for the weak are :

Bartronics has support at 144 and resistances are at 155-161

HOEC has support at 270 and resistances are at 332-380

DCM Shriram Consolidation has support at 56and resistances are at 66 -74

Try to learn one or two chart patterns and trading methods and evolve a system for your trading as a resolution for this year