SAI PARSADAM INVESTMENT
AND
BIG BOSS
VIKAS P SAMWATSARE
Top five trading strategies for this week
The Nifty
opened last week on a buoyant note taking cues from its global peers,
although the index shaded some of its initial gains and registered an
intraweek low of 5,332 levels.
Buying activity was intensified in the later part of the week which led the index hold on to its intraweek gains. The index finally closed at 5577 levels, with a 218 points rally for the week ended 14 September.
Going forward the index has immediate resistance near swing high of 5630 levels. Trading above which the index can head towards 5670-5675 levels. On the downside the index has immediate support at 5500 levels followed by rising gap witnessed on Friday (placed in the range of 5527-5447 levels).
Buying activity was intensified in the later part of the week which led the index hold on to its intraweek gains. The index finally closed at 5577 levels, with a 218 points rally for the week ended 14 September.
Going forward the index has immediate resistance near swing high of 5630 levels. Trading above which the index can head towards 5670-5675 levels. On the downside the index has immediate support at 5500 levels followed by rising gap witnessed on Friday (placed in the range of 5527-5447 levels).
1) Grasim IndustriesBSE -1.27 % Ltd: Rising Channel Breakout
The price of Grasim Industries has been trading in a rising channel since May 2009 on the weekly chart. On Friday, the stock registered a breakout from this rising channel. On the daily chart the stock is sustaining for the past couple of days.
The measuring implication of the pattern suggests that the price can advance to levels of Rs 3500 /3870 and/or 4200 levels over the medium term to long-term time-frame.
The momentum indicators are in rising trajectory and are in a buy mode. Hence, we recommend buying now and again on dips between Rs 3040 and 3080 levels with a stop loss placed below Rs 3017.80 levels, for targets of Rs 3220 and Rs 3350 levels.
The price of Grasim Industries has been trading in a rising channel since May 2009 on the weekly chart. On Friday, the stock registered a breakout from this rising channel. On the daily chart the stock is sustaining for the past couple of days.
The measuring implication of the pattern suggests that the price can advance to levels of Rs 3500 /3870 and/or 4200 levels over the medium term to long-term time-frame.
The momentum indicators are in rising trajectory and are in a buy mode. Hence, we recommend buying now and again on dips between Rs 3040 and 3080 levels with a stop loss placed below Rs 3017.80 levels, for targets of Rs 3220 and Rs 3350 levels.
2) Delta CorpBSE -0.87 % Ltd: Declining Line Breakout
The share price of Delta Corp has been declining since 20th Sept. 2011. In this week the stock has registered a breakout from the declining trend line. Traders should also note that for the first time since Nov. 2011, the stock has closed above 200 days moving average.
The stock is also sustaining levels above its cluster of moving averages. The momentum indicator is rolling upward. We recommend a buy at current levels and again on dip up to Rs 66-Rs 66.80 with a stop loss placed below Rs 65.40 for the targets of Rs 70 /72.80 levels.
The share price of Delta Corp has been declining since 20th Sept. 2011. In this week the stock has registered a breakout from the declining trend line. Traders should also note that for the first time since Nov. 2011, the stock has closed above 200 days moving average.
The stock is also sustaining levels above its cluster of moving averages. The momentum indicator is rolling upward. We recommend a buy at current levels and again on dip up to Rs 66-Rs 66.80 with a stop loss placed below Rs 65.40 for the targets of Rs 70 /72.80 levels.
3) Jet AirwaysBSE -1.94 % Ltd: Fresh Crossover
The share price of Jet Airways has been trading in a rising channel for the past few months. In the last week the stock has witnessed support near its lower end of rising channel. Currently the stock is trading above its cluster of moving averages on the daily chart.
On the weekly chart the stock has also formed a three bar reversal pattern, indicating the stock to move up further. The momentum indicator has also registered a bullish crossover. Traders can go long at current levels with a stop loss placed below Rs 355.80 levels for the targets of Rs 380 /390/400.
The share price of Jet Airways has been trading in a rising channel for the past few months. In the last week the stock has witnessed support near its lower end of rising channel. Currently the stock is trading above its cluster of moving averages on the daily chart.
On the weekly chart the stock has also formed a three bar reversal pattern, indicating the stock to move up further. The momentum indicator has also registered a bullish crossover. Traders can go long at current levels with a stop loss placed below Rs 355.80 levels for the targets of Rs 380 /390/400.
4) United SpiritsBSE -1.53 % Ltd: Fresh Breakout in Momentum Indicator
The price of McDowellBSE 0.53 % has witnessed a sharp rally from the low of Rs 547.30 to the highs of Rs 1022.45, since then the stock is trading in a sideways range. This sideways momentum is taking a shape of a head and shoulder pattern.
The measuring implication of the pattern suggests that the price can decline to levels of Rs 868 and/or Rs 820. On the weekly chart the stock has formed an evening star pattern. The momentum indicator has also witnessed fresh breakdown which displays weakness in the counter.
Thus, traders can look to sell now and again on rise up to Rs 935 - 940 with a stop loss placed above Rs 955.20 levels, for the target of Rs 900 /972 /945.
The price of McDowellBSE 0.53 % has witnessed a sharp rally from the low of Rs 547.30 to the highs of Rs 1022.45, since then the stock is trading in a sideways range. This sideways momentum is taking a shape of a head and shoulder pattern.
The measuring implication of the pattern suggests that the price can decline to levels of Rs 868 and/or Rs 820. On the weekly chart the stock has formed an evening star pattern. The momentum indicator has also witnessed fresh breakdown which displays weakness in the counter.
Thus, traders can look to sell now and again on rise up to Rs 935 - 940 with a stop loss placed above Rs 955.20 levels, for the target of Rs 900 /972 /945.
5) Cairn IndiaBSE 0.00 % Ltd: Rising Channel Breakout
The price of Cairn India LtdBSE 0.00 % has registered a breakout from the rising channel. The stock is also sustaining above cluster of moving averages for the past couple of days. The measuring implication of the pattern suggests that the price can advance to levels of Rs 375 / and/or 390. The momentum indicators are in rising trajectory and are in a buy mode.
Hence, we recommend buying now and again on dips between Rs 348 and Rs 352 levels with a stop loss placed below Rs 342.80 levels, for targets of Rs 366.50 and Rs 380 levels.
The price of Cairn India LtdBSE 0.00 % has registered a breakout from the rising channel. The stock is also sustaining above cluster of moving averages for the past couple of days. The measuring implication of the pattern suggests that the price can advance to levels of Rs 375 / and/or 390. The momentum indicators are in rising trajectory and are in a buy mode.
Hence, we recommend buying now and again on dips between Rs 348 and Rs 352 levels with a stop loss placed below Rs 342.80 levels, for targets of Rs 366.50 and Rs 380 levels.
SHORT TIME INVESTMENT TIPS FROM BIG BOSS VIKAS PARSHURAM SAMWATSARE
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