DAILY MARKET OUTLOOK

Report for 06 July ’09 :

Daily Close Support / Resistance

S2 - S1 / R1 – R2

Nifty ( spot ) 4424.25 4371 – 4398 / 4446 – 4469

Nifty ( fut ) 4424.65 4374 – 4402 / 4451 - 4474

Sensex 14913.05 14626 – 14786 / 15072 – 15232

Important Level ( on closing basis ) : 4330 ( Nifty Spot ) & 14740 ( Sensex )

St Target : 4535-50 (Nifty spot) & 15230-250 (Sensex)

Mt Target : Undecisive

Sell on rally…

As mentioned in last week that market should consolidate with positive move and Nifty moved almost with expected line with taking support at 4260 which was major support given in last week…

In Nifty Daily chart, after continue its consolidation within important support of 4260 and bounced back sharply on late last week. Even after heavy volatility in last week, Nifty St positive set up still intact for given St target of 4535-50 (in Sensx 15230-250). Most technical indicators are still in neutral zone which suggest that market will continue to get support on lower level at 4280 (major one) and 4330 on closing basis, on the other hand, technical oscillators are still in positive mode which should lead further pullback rally in coming days. By combining both technical indicators and oscillators, market will remain highly volatile in coming days with positive movement…

In Nifty Weekly chart, after heavy volatility from last two weeks, Nifty manages to close on slight positive mode on weekly basis. Nifty has formed another “Hammer” formation in last week. In weekly chart, technical indicators are still in are turning neutral from positive zone while technical oscillators are in OB zone with developing negative divergence which suggest that market will remain highly volatile in coming weeks. Nifty has taken support at presented upward trendline (refer page iv) which currently at 4320-40 on weekly basis and Nifty will continue to face selling on rally at 4550-4600. Nifty will remain highly volatile within this range on weekly basis…

Over all, market will continue its pullback rally towards 4535-50 and 15230-250 in Nifty and Sensex, respectively while updated support at 4330 and 14740, respectively. As major event of Union Budget on this Monday, market will find its next major trend from mid this week but as St set up still positive, leading indices should continue its rally upto mentioned St target before next downward MT move starts…

Intraday Calls :

Buy ACC above 770, s/l. 762, target 783 & 790…

Buy Bhel above 2192, s/l. 2171, target 2213 & 2229…

Sell Bhushan Steel below 649, s/l. 656, target 639 & 631…

Positional ( F & O ) Calls :

Buy Grasim above 2416, s/l. 2371, target 2482 & 2520…

Delivery (St-Mt) Calls :

Buy Glenmark Pharma above 241, s/l. 226, target 268 & 284…

Nifty Daily Chart :

As presented below, Nifty movement was almost with narrow range of 150-180 points and closed almost at weekly high with continuation positive divergence in technical indicators and oscillators. Nifty has taken support at shown trendline, which was at 4260 and continued its pullback rally towards 4535-50 in late last week. One of the important technical indicator, ADX turning sideways while ADX line still in downward move which also suggest that current up move is routine pullback rally after fall from recent high of 4695 to 4140. Nifty will continue its upward move in coming days also with maintaining St target of 4535-50 with St support levels of 4280 (major one) and 4330 on closing basis…

Nifty Weekly Chart :

As presented below, Nifty has formed another “Hammer” formation on weekly chart after taken support excatly at upward trendline which shown in last week. On weekly chart, most technical oscillators are still in OB zone with continue to develop negative divergence which will encourage Bears in coming weeks to active on every rise while technical indicators are turning neutral but still in positive mode which will provide relief to Bulls. On weekly basis, Nifty will continue to get support at 4320-40 on weekly basis while upside capped at 4550-4600…

MUTUAL FUND

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Key Rules For Successful Trading?

1. Pre-decide quantity and commodity you are going to trade for entire month, trade with same quantity as per your CAPITAL & don't increase or decrease it.
2. Execute trades in same quantity in selected commodity for that particular period without fail or loosing patience as many times as you get message never stop trading if s/l hits as our success ratio is 75-80% so overall u will be in profit.
3. Don't bother on profit or loss on each trade you make, look for reasonable appreciation (return) of your capital at end of month or stipulated period, which you intend to invest.
4. Unnecessarily don't get glued (stuck) to screen and worry your self about volatility of market.
5. Follow the messages & don't try to over smart your self like analyzing implications and Internet informations your self, it will confuse you completely for the trade.
6. Try to trade in multiples of 2 lots in any trades minimum must be 2 lots either mini or big on your convenience.
7. Always book 50% on first tgt Or recommended by us Or very near by be flexible to get out 2to 5rs near by tgts as that's maximum accuracy don't keep our tgt reach messages to book profit. And the balance 50% which you take for second tgt keep your cost as stop loss, if it hits you don't loose any thing.
8. Use stop losses given strictly as you will have fresh trading opportunity rather than waiting in a loss trade.
9. Be relaxed in trading and don't try to give judgment or expression every minute in 14 hours trade. Wait for messages act promptly after receiving it.
10. Don't trade selectively As again you don't know which trade can fail or super hit so please act on all calls of your pre-selected commodity for period you set.
11. Don't hold overnight if got too much fear from previous losses and not ready to believe your self as you intend to put all your negativity on us for which we are not ready talking history makes no sense in future markets and there results.

NOTE:- The decisions by brain are more effective than heart in future market remember this. Throw out emotions and sentiments plus greed and fear your balance sheet will have only one way that?s swelling with profits.

10 Positive Assertions

1. I want only what the market wants !
2. I enter in the market only when all of my indicators are pointed in the same directions !
3. I place stops as I enter trades !
4. I let any trade go that misses my entry !
5. I only initiate trade with a target price and a risk reward ratio of more than 1 : 1.
6. I have a reason to exit every trade !
7. I stay peaceful, calm and cool and see any and all of my emotions in a disassociated vision apart from me while trading !
8. I cut my losses short with every trade !
9. I focus on each trade meeting its trading plan to measure success.
10. I trade in a regulated, even and controlled way so that I am always prepared in my mindset to pass on all trade should there be none for the whole day !

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