Thursday, 5 June 2014

Trading strategy for 6th June 2014

The market after flat opening yesterday gained momentum post noon led by rally in oil & gas, power, metals stocks among others. Market sentiment is buoyed by persistent inflow of funds by FIIs and widespread participation by retail investors on hopes that the new government will revive the sagging economy. The Sensex closed above the psychological level of 25K gaining 213 points while the Nifty ended at 7474 up by 71 points. Readers are advised to trade with caution keeping stock specific approach.
NIFTY FUTURE (Last close 7486.75)
The counter after flat opening yesterday slipped to day’s low of 7376 in morning trades but recovered post noon and surged higher as the session progressed hitting day’s high of 7498 and finally closed gaining one per-cent. The counter may further move up to 7525/7547 on positive opening. Strong support for the counter exists at 7449.25 which if breached decisively with volumes then it may slide to 7425/7402.
BANK NIFTY FUTURE (Last close 15317.40)
The counter after flat opening yesterday surged to day’s high of 15389 in intra-day trades but profit taking emerged at higher levels and the counter finally closed with marginal gain of 19 points. The counter to gain strength needs to trade and remain above 15359.75 whereby it may move up to 15398/15455. Strong support for the counter exists at 15277.25 which if breached decisively with volumes then it may slide to 15208/15146.
BHEL FUTURE (Last close 261.00)
The stock after consolidating during the early part of the week closed yesterday above its weekly resistance with moderate volumes gaining about one per-cent. The stock appears positive on charts and may move up to 265/270 on volume trading. Strong support for the stock exists at 257.00.
TITAN FUTURE (Last close 323.95)
The stock after consolidating during the early part of the week closed yesterday above its weekly resistance with moderate volumes gaining over ½%. The stock appears positive on charts and may move up to 327/331 on volume trading. Strong support for the stock exists at 319.25.
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

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