Nifty is in short term downtrend

Yesterday Nifty tried to trade above 20 EMA but failed to recapture it . Today it may trade below 50 DMA .
Its in short term downtrend and resistances are  at  5450- 5480 and supports are at 5300-5350.

On the up side Hotel Stocks may see some interest on the back of EIH and RIL deal.
EI Hotels  has support at 137 and resistances are at 172-200.

Jim Rogers is bullish on Agri Commodities and Gold

Rogers is bullish on the agricultural commodity space.He siad it on CNBC




"There are 3 billion people in Asia, and most of them had not had a very good standard of living in the past 100 or 200 years. That's changing and changing very rapidly. They're going to eat more, they're going to wear more clothes…so agriculture is going to do very well."
 
 
You can read in detail :
 
http://www.cnbc.com/id/38913263

Trading in the zone : Mark Douglus

Mark Doulus in this book elaborates about  getting  consistent performance ;

CREATING A BELIEF IN CONSISTENCY


Creating a belief that "I am a consistent winner" is the primary objective, but like my intention to

become a runner, it's too broad and abstract to implement without breaking it down into a step-by-step

process. So what I'm going to do is break this belief down into its smallest definable parts and then give

you a plan to integrate each part as a dominant belief. The following sub-beliefs are the building blocks.

Thinking Like a Trader blocks that provide the underlying structure for what it means "to be a

consistent winner."



I AM A CONSISTENT WINNER BECAUSE:

1. I objectively identify my edges.


2. I predefine the risk of every trade.


3. I completely accept risk or I am willing to let go of the trade.


4. I act on my edges without reservation or hesitation.


5. I pay myself as the market makes money available to me.


6. I continually monitor my susceptibility for making errors.


7. I understand the absolute necessity of these principles of consistent success and, therefore, I


never violate them.

Most of the global markets are trading below 200 DMA

Most of the global markets including the big brother Dow Jones are trading below 200 DMA. Will our market follow them ? Well, only time will tell but at present 5450 is a crucial support.

There are some stocks which are very good on charts and every dips should be used to buy them.
Zydus wellness and Castrol we have talked about them many times are still in long term uptrend .
Similarly Bajaj auto and TVS Motor.


Tvs Motor has support at 140 and resistanc at 160-170 .
Pirmal health has support at 505 and resistance at 540-547

Stock specific action

Tata Global ( formerly  Tata tea )has given  a breakout with good volume.
It has support at 111 and resistances are at 125-130.

Polaris software ( though the sectoral tail wind is not supporting ) has support at 169 and resistances are at 190-195.

Mid Cap Ideas

Some of mid cap ideas for the week based on chart patterns are being shared with you.

BajajElectriclas has made a life time high and it has support at 251  and  resistance at 300.

Sunderam fastener has support at 57 and resistance at 72.

Lakshmi vilas bank has support at 115 and resistance at 150


Trade less, trade well

Mid Cap may continue to outperform .

Nifty is still stuck in range. banking sectors stocks are the flavour of the season.
Mid cap may  continue to outperform.

Prakash Industries has come out of a long consolidation it has support at 172 and resistances  are  at 193 / 197

Mcleod Russel has support at 254 and resistance is at 273.


Adani Enterprise is the stock to be kept on radar if it is able to trade above 637 then it may move up to 660-700 with support at 610.

Trade less, trade well

Happy Independence Day

We wish all the readers of this blog a very Happy Independence Day


Jai Hind

Is it trend reversal ?

Yesterday Nifty showed some sign of weakness in the last hour of trading session.Nifty futures also traded in discount. Going forward 5300 is a crucial support. This level is also the last week low for Nifty. If Nifty is not able to close above it then all short term  long trades should be squared off.

Is it trend reversal ? Well, its too early to say about it let market tell us with confirmation. But yes the signs of wekness are developing.

There are some good stocks which should on on radar for buying in dips.

Hitachi home has broken out with huge surge in volume Its trading at life time high.Some of the other peers from this segment like Blue Star, Whirlpool are also on the similar trajectory path.
Tata Motors have also zoomed above all its resistances and is trading at new highs.
OMCs stocks like BPCL and HPCL are making rounding bottom patterns on charts.

Cement Sector

Nifty as per its predictable pattern for the last  few months again faced resistances at higher levels.
Cement sector saw some momentum buying and most of the stocks from this sectors are coming out after a long consolidation with having formed multiple bottoms on charts.
Century Textile, ACC, Grasim , Prism Cement all have similar patterns.Rail stocks like Kalindee rail, Titagargh, Texmaco and Kernex are also climbing up steadily.

One can go long on dips in these sector.

Heidelberg cement has support at 48 and resistance at 57.

Kernex Micro system has support at 115  and resistance at 135.

keep volumes low, trade less, trade well.

Nifty at new high

Yesterday Nifty closed at new high with support from global markets.
Education related stocks like Educomp, Aptech, Everon etc showed momentum . Banking stocks which are driving the market along with select auto stocks showed upward traction.

The domestic consumption theme is still in focus with Jubilant food, Raymonds, Gitanjali Gems  and IFB Ind .zooming past their previous resisatnces  along with surge in volumes. These all stocks should be on ur radar and every dips should be used to buy these stocks.


Trade less , trade well

Mid Cap IT stocks on Focus

Nifty did show sign of breaking out yesterday but to use the cliche now very common " Its still in range"

Shipping sector outperformed as we discussed about a few days back. Essar Shipping, GE Shipping, MLL all have shown good momentum barring SCI which we liked. Well, that's what trading life is all about. The sector moved but the one stock which also had probability of moving up did not move up.But we were able to identify the sector move this itself is a learning.

Yesterday IT stocks moved up and now if the trend continues we may see action in Mid Cap IT space.

Polaris software has support at 175 and resistance at 191

3 I Infotech  has support at 64 and resistance at 71

Be Stock specific

Nifty is still stuck in range . At this juncture the upside seems limited therefore one should trade light.

This market has become market of stocks instead of stock market.

Biocon has support at 314 and resistances are at 330 -334

Ruchi Soya  has support at 104  and resistances are at 113-118

Will market scale new high ?

.“The wise are instructed by reason, average minds by experience, the stupid by necessity and the brute by instinct”


Cicero



Yesterday Nifty was managed regain its lost ground. Bank Nifty made a new high and now it stands at those levels which we saw in 2008.
Nifty has to close above its recent high of 5450-5477 then only it may have some upward momentum. Now the support for Nifty is at 5350.
 Most of the Infra stocks have come out of consolidation zone with rise in volume also.

Era Infra has support at 210  and resistances are at 235 / 250.

Shipping Sector

Nifty is still trading in a range though some sectors are seeing momentum picking up. Shipping sector saw some action in last trading session. Ge Shipping, Essar Shipping, SCI all are coming out of long consolidation.

SCI has support at 155 and resistances are at 168 / 173

Tata Chemical has support at 330 and resistances are at 345/ 355.

In banking space Andhra Bank has support at 138 and resistances are at 151 -155.