Hello all!!
The market closed in the positive territory on Thursday, 20th August'09. Sensex gained 202 points to close at 15012.32 nifty managed to gain 59 points to close at 4453. There are two points of concern here. First, the market failed to hold the gains it had and second, the close is at the resistance level (on nifty 4451 and on sensex 15027).
So what should we expect now?? Well, the question is becoming tougher and tougher to answer with each passing day because even the charts suggest hardly anything and this to me denotes that even people are confused and thinking which way the market will go. In the last four days, sensex has been in a range of 14795-15027 on closing basis while nifty has been in a tight range of 4388-4451. We need to wait and watch the direction in which market breaks out. At the same time, it is pivotal for us to remain bullish that the market closes above 15180 and 15242 on sensex today (Friday, August 21).
Stocks to Avoid Avoid mid cap IT stocks at present. They are seeing pressure and strong resistance at current levels. For eg- Hexaware Technologies is in a range of 76.35 to 79.80 since last 5 days and it has also formed a bearish candlestick pattern. It is not being respected currently because the sector currently is in an uptrend. HCL Tech is another stock to be cautious about. The stock is expected to make a lower high (which is the first signal of trend reversal) and there are indicators that suggests exiting from the stock.
Avoid autos for the time being. Though Hero Honda managed to go past 1400 yesterday, that does not mean that it has regained strength. The rise in price is on the back of very thin volumes. This short spurt can go up to Rs1420/- after which the price is expected to fall. In case it is able to go past Rs1420/- decisively, that will be a positive signal for the stock in particular.
Aban Offshore
The stock is looking good on the charts and a performer in the market even today. Close above Rs1146/- decisively with increased volumes, will trigger a buy signal. Though the stock closed at Rs1140/- on Thursday, very close to resistance, the positive point is that the range has become very narrow. So breakout on either side can trigger a trade signal and will help providing a direction to the market.
Not only with Aban or mid cap IT or any stock in particular, but there is a range developing on almost all the stocks. On many stocks, the range has become very tight and there are indicators that suggest breakouts may happen very soon.
Ideas on the stocks discussed yesterday remain the same. Only exception is LITL, where we need to be cautiously bullish as the market forces will also affect the stock price as even yesterday, the stock lost grounds after showing strength when the market was range bound. However, the target and the stop loss remain intact.
The market closed in the positive territory on Thursday, 20th August'09. Sensex gained 202 points to close at 15012.32 nifty managed to gain 59 points to close at 4453. There are two points of concern here. First, the market failed to hold the gains it had and second, the close is at the resistance level (on nifty 4451 and on sensex 15027).
So what should we expect now?? Well, the question is becoming tougher and tougher to answer with each passing day because even the charts suggest hardly anything and this to me denotes that even people are confused and thinking which way the market will go. In the last four days, sensex has been in a range of 14795-15027 on closing basis while nifty has been in a tight range of 4388-4451. We need to wait and watch the direction in which market breaks out. At the same time, it is pivotal for us to remain bullish that the market closes above 15180 and 15242 on sensex today (Friday, August 21).
Stocks to Avoid Avoid mid cap IT stocks at present. They are seeing pressure and strong resistance at current levels. For eg- Hexaware Technologies is in a range of 76.35 to 79.80 since last 5 days and it has also formed a bearish candlestick pattern. It is not being respected currently because the sector currently is in an uptrend. HCL Tech is another stock to be cautious about. The stock is expected to make a lower high (which is the first signal of trend reversal) and there are indicators that suggests exiting from the stock.
Avoid autos for the time being. Though Hero Honda managed to go past 1400 yesterday, that does not mean that it has regained strength. The rise in price is on the back of very thin volumes. This short spurt can go up to Rs1420/- after which the price is expected to fall. In case it is able to go past Rs1420/- decisively, that will be a positive signal for the stock in particular.
Aban Offshore
The stock is looking good on the charts and a performer in the market even today. Close above Rs1146/- decisively with increased volumes, will trigger a buy signal. Though the stock closed at Rs1140/- on Thursday, very close to resistance, the positive point is that the range has become very narrow. So breakout on either side can trigger a trade signal and will help providing a direction to the market.
Not only with Aban or mid cap IT or any stock in particular, but there is a range developing on almost all the stocks. On many stocks, the range has become very tight and there are indicators that suggest breakouts may happen very soon.
Ideas on the stocks discussed yesterday remain the same. Only exception is LITL, where we need to be cautiously bullish as the market forces will also affect the stock price as even yesterday, the stock lost grounds after showing strength when the market was range bound. However, the target and the stop loss remain intact.
Disclaimer:-
1) I do not trade personally in the stock market now.
2) Any loss suffered by the reader on the basis of above information provided does not hold the writer liable for it. Any decision to take a trade by the reader on the basis of information provided above is at his/her discretion
