Wednesday, 19 November 2014

Trading strategy for 20th November 2014

The market after flat opening yesterday remained range bound till late afternoon when profit taking emerged in stocks of metal, power, banking, oil & gas among others pulling down the market to session low. The market finally closed with the Sensex at 28032, down by 130 points after making new high of 28294 while the Nifty ended at 8382, down by 43 points. Market breadth remained weak as 1309 shares advanced while 1899 declined. Readers are advised to trade with caution keeping stock specific approach.
NIFTY FUTURE (Last close 8409.55)
The counter after flat opening yesterday remained range bound till late afternoon when profit taking emerged dragging the counter to session low of 8371 in late hour trades. The counter however, recovered in closing hours and finally closed losing 42 points. The counter to gain strength needs to trade and remain above 8426.75 whereby it may move up to 8450/8465. Strong support for the counter exists at 8388.25 which if breached decisively with volumes then it may slide to 8371/8350.
BANK NIFTY FUTURE (Last close 17637.15)
The counter after positive opening yesterday moved in a choppy trade drifting lower as the session progressed slipping to session low of 17606 in closing hours. The counter finally closed losing 110 points. The counter to gain strength needs to trade and remain above 17679.75 whereby it may move up to 17713/17759. Strong support for the counter exists at 17583.25 which if breached decisively with volumes then it may slide to 17541/17519.
ARVIND FUTURE (Last close 296.40)
The stock after consolidating during the past sessions closed yesterday above its weekly resistance with moderate volumes gaining over ½%. The stock appears positive on charts and may move up to 299/301 on volume trading. Strong support for the stock exists at 292.25.
MCLEOD RUSSEL FUTURE (Last close 246.10)
The stock after consolidating during the past sessions closed yesterday above its weekly buy signal with moderate volumes after hitting day’s high of 254 in intra day trades. The stock appears positive on charts and may move up to 248/251 on volume trading. Strong support for the stock exists at 243.25.

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