Divergence Worked

On Daily Chart Nifty had divergence and finally price followed the momentum.

Nifty may try a pull back and one have to see its strength at key resistances of 5320 - 5350.

We will have a short term trend reversal only if Nifty trades below 5250.

Geometric Software has support at 70.50 and resistances are at 79- 84

Keep your volume low.

Trade less, trade well

Ideas for the week

Nifty is hovering near its major resistance level. One should watch for closing above 5330 for a few trading sessions.

Everonn system has manged to claw back and closed above 200 EMA with increase in volume after trading below it for 14 days. It has support at 370 and resistances are at 406-418 and 428.

Zydus Wellness : We talked about this stock in our blog before on Feb. 02, 2010 and since then this stock has outperformed the market. The stock is strong on all time frame and should be bough on every dip. The support is at 378 and target could be 450-500.

Trade consistently and have fun.

Market may give you dip

With the rising Inflation concern RBI has tighen the liquidity . Greece fiscal woes still persist and this week we may start with uncertainity .
Market may start with gap down opening on Monday.

Our last week idea Torrent Pharma has done well. One should focus on defensive sectors like Pharma

FDC has support at 75 and resistances are at 100-120. Its chart patttern is similar to that of Torrent Pharma . Both of them are trading at new high and are unlikely to face stiff resistance . Every dips should be used to buy these two stocks.


Trade well and have fun

Know your profile

This long weekend had given us time to relax , reflex and revisit our trading methods.

There is no right or wrong way to trade. You must decide what is best for you, which method suits you best depending upon what type of person you are.Therefore, its is necessary to take some time aside to think , understand and know yourself. Once you know yourself then finding a trading method becomes easy.
Whether you use automated ( rule-based ) trading or a discretionary method ( subjective) or a combination of both , what is required is that you must have a trading plan and adhere to it.

Budget hype is over now and we are back to global cues now. We used the budget day to buy and we are well positioned to take advantage of short term up move.

Banking and Auto sectors are expected to see some upward swings .

Polaris software has been hammered a lot and is finding support at 200 DMA.
Its support is at 140 and if it trades above previous high of 150 then targets could be 168 and 180

Trade well have fun

Market may break out of the range ?????

Market has been trading in a range and despite most of the negative news flow Nifty was able to sustain above key support levels. On weekly chart Nifty is also showing some sign of taking support at lower levels and resistances are at 4950 -5000.

Some of the trading ideas for the week are :

Aptech - Support 159 Resistances 194- 202-208


Ruchi Soya - Support 85 Resistances 102-110


Whirpool - Support 127 Resistances 160

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