TRADING STRATEGY FOR 16TH OCTOBER 2009
(Based on technical by O P AGARWAL)


Markets take a breather

The market opened moderately firm yesterday on the back of strong global cues but it proved to be short lived as within half an hour of trade the market slipped in the red on selling in front line stocks. The market thereafter moved range bound till late afternoon when a smart buying in pivotals pulled up the indices and the market pared majority of its earlier losses. The Sensex which had dipped to a low of 17092 in early afternoon trades finally ended the session flat with marginal loss of 35 points at 17195. The Sensex had earlier made a high of 17350 in intra day trades. The Nifty closed at 5108 losing 9 points after making a low of 5077 and a high of 5152 in intra day trades. Meanwhile, according to the data released by the government around noon yesterday, inflation based on the wholesale price index rose 0.92% in 12 months to 3 October 2009, slightly above previous week's annual rise of 0.7%. Market participants are of the opinion that the apex bank may not revise upward the current bank rates for the time being despite rise in inflation to maintain the economic growth. Meantime, the market breadth remained marginally positive as out of 2836 stocks traded on BSE, 1401 stocks closed higher. 1357 stocks declined and 78 stocks ended flat. Further, as per provisional data, foreign funds bought equities worth a net Rs 752.48 crore while domestic funds sold stocks worth a net Rs 443.08 crore yesterday. The markets appear to be witnessing selling pressure at higher levels and therefore, readers are advised to trade with caution and remain stock specific.

NIFTY FUTURE (Last close 5109.95)
The counter after gap up opening yesterday soon slipped in the red on selling pressure in front line stocks. The counter dipped to a low of 5067 in mid afternoon trade but in a surprise move in late afternoon trade the indices recovered smartly on hectic buying in pivotal stocks whereby the market managed to erase majority of its earlier losses. However, the movement appears to indicate that the market is facing selling pressure at higher levels on profit taking and therefore, readers are advised to trade cautiously and watch the market trend before committing large positions. Intra day trading levels for paid subscribers

GE SHIPPING FUTURE (Last close 285.05)
The company owns and operates cargo ships with fleet of vessels which includes bulk carriers, tankers and offshore supply vessels. The Company also acts as an agent for a number of foreign shipping companies. The company hopes to post better earnings for the rest of the quarters in view of revival in economy. Meantime, the stock after remaining range bound during the past four trading sessions closed flat yesterday with positive bias. The stock appears to be positive on weekly charts and may move up to 289/294 once it trades and remains above 285.75. Strong support for the stock exists at 281.25.

PETRONET LNG FUTURE (Last close 76.35)
The company imports, stores and regassifies LNG and sells it. It is the largest importer of chilled gas (gas imported as liquefied natural gas in tankers). Meantime, as per reports, the company is planning downstream diversification by setting up two power plants with a capacity of 1,200 megawatt each, next to its two LNG terminals in Dahej and Kochi thereby augmenting its revenue substantially. The company will announce its Q2 results on 24th October,09. Meantime, the stock of the company after consolidation during the past few trading sessions closed yesterday above its weekly resistance suggesting immediate up move for the stock. The stock may move up to 79/82 once it trades and remains above 76.50. Strong support for the stock exists at 74.25.

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
Visit Welcome to BazarBhavishya regularly
Email: opagarwal805@gmail.com
Mobile: 09825029446