Tuesday, 5 May 2015

Trading strategy for 6th May 2015

The market after weak opening yesterday moved higher in late morning trades but failed to sustain at higher levels and slipped to day’s low in late afternoon on profit taking. However, Hindustan Lever, Tata Steel, Hindalco, ONGC, Kotak Bank gained while M&M, HDFC, SBI among others lost. The Sensex closed at 27440 down by 50 points while the Nifty ended at 8324 down marginally by 7 points. The market breadth remained flat as 1353 shares advanced while 1345 declined. Readers are advised to trade with caution keeping stock specific approach.
NIFTY FUTURE (Last close 8361.70)
The counter after weak opening yesterday moved higher in late morning trades to 8397 which however, remained short lived and slipped to session low of 8309 on profit taking in afternoon trades. The counter recovered in closing hours and finally ended with marginal loss of 10 points. The counter to gain strength needs to trade and remain above 8373.75 whereby it may move up to 8391/8413. Strong support for the counter exists at 8334.25 which if breached decisively with volumes then it may slide to 8313/8290.
BANK NIFTY FUTURE (Last close 18557.90)
The counter after flat opening yesterday moved to day’s high of 18655 in morning trades which remained short lived and slipped to session low of 18471 on profit taking in noon trades. The counter finally closed with marginal loss of 41 points after moving in a choppy fashion. The counter to gain strength needs to trade and remain above 18593.75 whereby it may move up to 18641/18694. Strong support for the counter exists at 18522.25 which if breached decisively with volumes then it may slide to 18481/18427.
IDEA FUTURE (Last close 180.00)
The stock after consolidating during the previous sessions closed yesterday above its weekly buy signal with moderate volumes gaining marginally. The stock appears positive on daily charts and may move up to 182/184 on volume trading. Strong support for the stock exists at 178.25.
L & T FINANCE FUTURE (Last close 64.70)
The stock after consolidating during the past sessions closed yesterday above its weekly resistance with moderate volumes gaining marginally. The stock appears positive on charts and may move up to 65.50/67 on volume trading. Strong support for the stock exists at 63.25.

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