TRADING STRATEGY FOR 9TH OCTOBER 2009
(Based on technical by O P AGARWAL)


Markets end flat amid profit taking

The market opened strong yesterday on the back of positive cues from the world markets and bonus announcement by Reliance Industries. Markets appear consolidating at current levels but the trend remains uncertain amid high intra day volatility. The market may find trigger once Q2 results are announced with the first major result due for announcement today by the IT giant Infosys. Meantime the Sensex which had slipped in to the red in early morning trade yesterday subsequently recovered but finally ended flat after having gained more than 191 points during the day. The Sensex ended at 16,843, up 36 points, after trading between day’s high of 16,998 and low of 16,775. The Nifty too ended around its last close at 4,988 points, up 0.05 per cent. Further, the assembly election next week in Maharashtra may also turn out to be a major event affecting the markets. It is therefore advised that large fresh position build up should be avoided at present till a clear trend emerges.

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NIFTY FUTURE (Last close 5001.70)
The counter, as expected, opened gap up on RIL’s bonus announcement but failed to sustain at higher levels and sharply dropped in early morning trades. However, around early noon NF surged higher on hectic buying in front line stocks making day’s high at 5052 but it remained short lived and a sell off around mid afternoon pulled down the markets and NF pared all its earlier gains. The counter may remain volatile with the announcement of Q2 results with the first major earnings being announced today by Infosys. Intra day trading levels for paid subscribers only.

PANTALOON RETAIL FUTURE (Last close 332.95)
The company owns and operates retail stores throughout India that cater to a wide cross-section of the Indian society. It operates Big Bazaar, Food Bazaar, Central and Pantaloons. The company’s net profit rose 7.1% to Rs 34.37 crore on 21.2% rise in net sales to Rs 1642.09 crore in Q3 June 2009 over Q3 June 2008 despite economic slowdown. The company hopes to substantially improve its performance in the remaining quarters with the signs of improvement in the economy. Meantime, the stock after consolidating during the past few trading sessions closed yesterday flat but with positive bias. The stock appears positive on charts. The stock may move up to 341/347 once it trades and remains above 335.25. Strong support for the stock exists at 329.25.

TATA COMMUNICATIONS FUTURE (Last close 473.30)
The company is engaged in the business of communications services and operates in three business segments: Wholesale voice, Enterprise and Carrier data, and others. The Company’s wholesale voice segment includes international and national voice services. The company is constantly upgrading their services and offering latest communication facilities to the customers. Meantime, the stock of the company after moving sideways closed yesterday marginally higher with high volumes. The stock appears positive on weekly charts and may move up to 479/483 once it trades and remains above 474.75. Strong support for the stock exists at 470.25. Meantime, TRAI clarified yesterday that Telecom operators would be free to offer various tariff plans to their subscribers, including the per-second billing scheme, and they would be free to fix the tariff per second. This would come as a relief to the telecom operators who would have taken a hit on their revenues, if the per-second-billing model was to become mandatory, as telecom companies are already facing low revenues per subscriber.

DEAR READERS,
PLEASE WATCH THE MARKET TREND AND USE YOUR
OWN DISCRETION BEFORE TAKING A TRADE.
Protect profits with trailing stops and cut losses fast.
Avoid adding contracts in loss making trades
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Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
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