Thursday, 14 May 2015

Trading strategy for 15th May 2015

The market closed yesterday lower amid volatile trading session over concerns of delay in Land Bill, GST Bill and controversial MAT levy coupled with subdued monsoon forecast. The Sensex closed the day at 27206 down by 45 points while the Nifty ended at 8224, down by 11 points. Meantime, WPI softened for the sixth straight month to a low of 2.65% in April compared to 2.33% in March. The market breadth however, remained positive as 1480 shares advanced while 1183 declined. Readers are advised to trade with caution keeping stock specific approach
NIFTY FUTURE (Last close 8237.80)
The counter after flat opening yesterday soon slipped to session low of 8143 in early morning trades but soon recovered and moved thereafter in a volatile mode with bouts of buying and selling and finally closed with marginal loss of 12 points after hitting day’s high of 8255 in closing hours. The counter to gain strength needs to trade and remain above 8253.75 whereby it may move up to 8278/8297. Strong support for the counter exists at 8221.25 which if breached decisively with volumes then it may slide to 8200/8169.
BANK NIFTY FUTURE (Last close 18135.20)
The counter after flat opening yesterday slipped to day’s low of 17785 in early morning trades but soon recovered and moved thereafter with positive bias and finally closed with marginal gain of 26 points. The counter to retain its up move needs to trade and remain above 18169.75 whereby it may move up to 18237/18300. Strong support for the counter exists at 18088.25 which if breached decisively with volumes then it may slide to 18000/17919.
BATA INDIA FUTURE (Last close 1068.55)
The stock after consolidating during the early part of the week closed yesterday above its weekly resistance with moderate volumes gaining ½%. The stock appears positive on charts and may move up to 1078/1085 on volume trading. Strong support for the stock exists at 1062.25.
NMDC FUTURE (Last close 133.40)
The stock after consolidating during the past sessions closed yesterday above its weekly buy signal with moderate volumes gaining over 1%. The stock appears positive on charts and may move up to 135/137 on volume trading. Strong support for the stock exists at 131.25.

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