Jindal Poly : on the verge of breakout

Jindal Poly had very interesting pattern on charts . It is consolidating with narrow daily range and without retracing below 20 EMA. It has been trading in a range of 15-20 points for the past four days .The volumes are also low which shows accumlation .Once the stock is able to trade above 545 then it may see explosive moves which can take it to 600 and 620 .It has strong support at 500.
Voltas and godrej Industries have also seem to come out of woods.

Sector Buzz : Metal and Soft commodities.

Commodities surged up in LME on expectation of  rising global demand .
Sugar futures rose for a second day in New York and London as Thailand repurchased the sweetener for the first time in more than 30 years, fueling speculation that demand will stay strong as buyers add to stockpiles.Sugar stocks being cyclic in nature are good long term bet.


Hindalco has support at 145 and resistances is  at 165 .

United Phos. has support at 172  and resistances is  at 196

Aptech has broken out with spike in volume it has support at 140 and resistances are at 160-170

Keep on booking  profits as we move higher.

Do not fight the trend

Markets are in strong uptrend and most of the retail traders have the temptation of going short on Nifty. As a trader one should not flow against the flow. One should be in tune with the market.
Global markets are showing strength.Dollar is again going south and commodities are firming up. In US, Street expectation is that the Fed will leave its target range for the federal funds rate unchanged at 0.0 to 0.25 percent, although analyst will be keeping a close eye for any indications of future rate hikes.Intel Corpn has announced that personal computer sell is picking up.

Tomorrow we may see action in HCC with supports at 115 and res at 160 and RPower with support at 165 and res at 190.
Our weekly picks Tata Motors and Satyam Computer has done well today . You should exit from these two on Friday.
BTST trade India Info Line and Rolta are expected to do well tomorrow , if u have taken any position you should exit by 10.15 Am.
As long as the momentum and trend is up take every dip as buying opportunity.

Sunday thoughts

Dr Brett Steenbarger has posted some quotation on his blog . These are pearls of wisdom for traders .


http://traderfeed.blogspot.com/2009/09/quotations-success-and-failure.html


Have a nice weekend ahead.

Will we move to new high ???

Well, its almost have been a year . A year before we had the financial meltdown ,the Lehman Bros.collapse, and credit default swaps, and Gov't bail outs and  announcement of Stimulus package all acorss the globe by Government. Now everybody is talking that the worst is over. Are we really come out of woods ?? Just for your information Japanese Index Nikkie  made a high of 38900 in year 1990 and today its trading at 10300 . Real estate bubbled had an adverse impact on the economy. And do you know  that the Japanese introduced 11 different stimulus packages worth 30 Trillion yen? The Japanese thought that rescuing bank and  making concrete river bed will put economy on track but they were wrong . The country has a huge debt and people are saving more and consumer spending is not picking up.US ans all global markets surged up on the back of some encouraging economic data particularly about increase in consumer spending  but how long is it going to sustain ?? Unemployment is a  big concern and as people are unsure about future they tend to save more and do not spend .

 All this has been nicely highlighted by Bill Bonner of .www.dailyreckoning.com
You can read about it in detail  http://dailyreckoning.com/the-credit-cycle-has-turned/

One should just keep this simple things in mind as  media talks about Nifty going to 5500-5700.