Wednesday, 11 June 2014

Trading strategy for 12th June 2014

The market after flat opening yesterday surged to day’s high in late morning trades but failed to sustain at higher levels and pared earlier gains and moved with negative bias thereafter to finally close in the negative. The Sensex closed at 25473 down by 109 points making a high of 25735 and a low of 25365 while the Nifty ended at 7626 down by 29 points. The market witnessed select buying in IT and banking stocks while the metals, reality, power and oil & gas sector stocks among others were beaten down. The market breadth remained positive as 1727 shares advanced while 1518 declined. Readers are advised to trade with caution keeping stock specific approach.
NIFTY FUTURE (Last close 7637.15)
The counter after flat opening yesterday surged to day’s high of 7715 in late morning trades which however, remained short lived on profit taking in front line stocks. The counter thereafter, moved with negative bias throughout the session and finally closed with a loss of over 30 points. The counter may remain under pressure and slip further to 7609/7583 on negative opening. Strong resistance for the counter exists at 7669.75 which if crossed decisively with volumes then it may move up to 7702/7734.
BANK NIFTY FUTURE (Last close 15474.80)
The counter after flat opening yesterday surged to session high of 15699 in late morning trades which however, remained short lived on profit taking in front line banking stocks. The counter thereafter moved in a choppy fashion erasing earlier gains and finally closed flat. The counter to gain strength needs to trade and remain above 15517.75 whereby it may move up to 15569/15626. Strong support for the counter exists at 15431.25 which if breached decisively with volumes then it may slide to 15388/15329.
GLENMARK FUTURE (Last close 574.40)
The stock after consolidating during the past sessions closed yesterday above its weekly resistance with moderate volumes gaining over one per-cent. The stock appears positive on charts and may move up to 579/586 on volume trading. Strong support for the stock exists at 568.25.
RANBAXY FUTURE (Last close 461.60)
The stock after consolidating during the past sessions closed yesterday above its weekly resistance with moderate volumes gaining over 1/2%. The stock appears positive on charts and may move up to 465/469 on volume trading. Strong support for the stock exists at 456.00.

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