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
Sunday, January 31, 2010
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