Sunday, 11 May 2014

Trading strategy for 12th May 2014

The market closed the week with the indices scaling new peaks on hopes that a stable reform oriented government will be installed once LS election results are out next week. Investors indulged in frenzied buying in heavy weight stocks coupled with short covering on the last Friday taking the Sensex to record high of 23048. However, IT and pharma stocks remained subdued and lost. The Sensex closed the week at 22994 gaining 590 points while the Nifty ended at 6858, up by 198 points after making weekly high of 6871. The market may remain volatile throughout this week as investors will be glued to their TV sets listening to the exit poll by various agencies. LS election results will be out on Friday the 16th May 2014. Readers are advised to trade with caution.
NIFTY FUTURE (Last close 6887.40)
The counter closed the week gaining over 160 points amid high volatility and intra week swing of 235 points. The counter surprised the market by scaling new peak at 6898 on last Friday on frenzied buying after reported leak of exit poll numbers favouring a stable government. The counter this week may remain in the range of 6724-7050, break above it may move up to 7077/7109 or else break below it may slide to 6691/6659. For today’s trading the counter may move further up to 6919/6938 once it trades and remains above 6902.75. Strong support for the counter exists at 6866.25 which if breached decisively with volumes then it may slide to 6843/6820.
BANK NIFTY FUTURE (Last close 13838.95)
The counter closed the week gaining over 900 points amid high volatility and intra week swing of 1048 points. The counter spurted by a hefty 726 points on last Friday on reported exit poll leak. The counter this week may remain in the range of 13515-14162, break above it may move up to 14241/14309 or else break below it may slide to 13447/13361. For today’s trading the counter having remained firm may further move up to 13915/13984 on positive opening. Strong support for the counter exists at 13762.25 which if breached decisively with volumes then it may slide to 13694/13632.
EXIDE FUTURE (Last close 117.70)
The stock after consolidating during the past sessions closed on last Friday above its short term trend line with moderate volumes gaining over one per-cent. The stock appears positive on daily charts and may move up to 119.50-121 on volume trading. Strong support for the stock exists at 115.25.
WIPRO FUTURE (Last close 515.25)
The stock after remaining subdued witnessed hectic buying on last Friday and closed gaining over ½% with moderate volumes. The stock appears positive on daily charts and may move up to 518/521 on volume trading. Strong support for the stock exists at 512.25.

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