Wednesday, 23 July 2014

Trading strategy for 24th July 2014

The market after positive opening yesterday moved up in morning trades but witnessed profit taking in later session and drifted lower touching day’s low in late afternoon trades. The market however, recovered in closing hours led by gains in index heavy weight stocks namely Bharti, Infy, TCS, Reliance among others. The Sensex closed the day at 26147 gaining 121 points after dipping to a low of 26000 while the Nifty ended at 7795 with marginal gain of 27 points. Readers are advised to trade with caution keeping stock specific approach.
NIFTY FUTURE (Last close 7791.55)
The counter after positive opening yesterday moved higher to day’s high of 7806 in early morning trades but failed to sustain at higher levels on profit taking and slipped to session low of 7746 in late afternoon trades. The counter however, recovered in closing hours and finally closed with marginal gain of 23 points. The counter to retain its up move needs to trade and remain above 7811.75 whereby it may move up to 7825/7842. Strong support for the counter exists at 7771.25 which if breached decisively with volumes then it may slide to 7754/7735.
BANK NIFTY FUTURE (Last close 15494.60)
The counter after strong opening yesterday surged to day’s high of 15660 in morning trades which however, remained short lived on profit taking dipping to session low of 15405 in late afternoon trades. The counter however, recovered in closing hours and finally closed with marginal gain of 44 points. The counter to retain its up move needs to trade and remain above 15543.75 whereby it may move up to 15621/15675. Strong support for the counter exists at 15441.25 which if breached decisively with volumes then it may slide to 15375/15316.
TATA CHEMICAL FUTURE (Last close 346.75)
The stock after consolidating during the past sessions closed yesterday near its weekly resistance with moderate volumes gaining over 1%. The stock appears positive on charts and may move up to 351/354 on volume trading. Strong support for the stock exists at 343.25.
LIC HOUSING FUTURE (Last close 312.60)
The stock after consolidating during the past week closed yesterday near its weekly resistance with moderate volumes gaining over ½%. The stock appears positive on charts and may move up to 315/317 on volume trading. Strong support for the stock exists at 309.00.

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