Nifty Tips and Technical Analysis

Nifty Trading Strategy

2015-11-17T23:13:00.001-08:00

Technically The Nifty is in negative zone under 7827, Below 7827 it could head lower to 7800 and 7764.

Trading Strategies 25th April 2012

2012-04-24T07:00:00.000-07:00

Buy Bajaj Auto Above Rs.1669 with targets of Rs. 1686 keeping a stop of Rs.1662
Buy Nifty 5300 Call @ Rs.10.60
Buy Bharti Airtel 320 call @ Rs.0.86
Buy SBI 2200 call @ Rs.29.25
Buy Pantaloon Retail with targets of Rs.174 keeping a stop loss of Rs.164.90
Buy Noida Toll (Hold)
Buy Jindal Poly at Rs 192 for a target of Rs 207, Stop loss at Rs 187

Trading Strategies For 20th April 2012

2012-04-19T18:48:00.001-07:00

The Nifty has a continuous run up since Jan 2012. The markets seem to be positive after the Rate cut announced by the RBI .

With Spot Nifty trading at 5332 we expect Nifty to touch 5446 a continuation of a bull run will be confirmed once nifty closes above 5446 , Resistance Lies at 5500 , a break above 5510 will lead the Nifty towards 5700 and 6100, Therefore levels to keep a track of is 5500 and 5100 .
However, a Break below 5100 will drag the Nifty towards 4900.

Stocks to purchase are

Noida Toll with Targets of Rs.27 and a SL of Rs.22
Bharti Airtel with targets of Rs.329 and maintaining an SL of RS.320 CMP is Rs.323
IDFC with target of RS.145 while maintaining an SL of Rs.129
Escorts LTD is a good Buy once Crosses Rs.81 , with targets of Rs.85 once Crosses Rs.81 you can place an SL of Rs.79 and hold long positions
Reliance Communications is a good buy with targets of Rs.95

Trading Strategies for April 2012

2012-03-31T16:24:00.000-07:00

BUY jaiprakash associates target Rs.86.20, levels once broken will lead towards 88.75

BUY BHEL only once price breaks Rs.257 with targets of 263.1 and 266.5
However If price fails to breach Rs.257 then short with targets of Rs.252 and Rs.241

Buy Golden tobacco for long term (Technical candlestick pattern has three black crows
which define a huge bullish candle towards Rs.62

IOL Chemicals is going to continue its bearish move towards Rs.19.5 therefore we would
recommend hold short positions

BUY ZODIAC CLOTHING WITH TARGETS OF RS.233 maintain a stop loss of Rs.198
Do not hold this stock for a long term, since this will continue to remain in a consolidation
phase for the next coming months, We are keeping a watch on this stock since it has
gained with volume of over 9 Lakh shares within a day's time, Therefore if it breaches Rs.250.5
it may continue to move north.

WE RECOMMEND GOING SHORT ON LUPIN AT MARKET RANGE OF RS.533-546 WITH TARGETS OF RS.409 AND RS.384

Stock Tips 30th March 2012

2012-03-30T01:57:00.001-07:00

Buy Venus Power for big profits!

Buy Tata power with targets of 102

Nifty Support Lies at 5180

2012-03-28T00:49:00.002-07:00

The support level for Nifty lies at 5180 , Our recommendation is to Buy 5200 Put and Buy Nifty at current market levels.

Buy Reliance Infra 580 PUT at CMP with targets of Rs.17 to Rs.20

Research 22 March 2012

2012-03-21T16:28:00.002-07:00

SHANTI GEARS BUY ABOVE 36.6

GANESH POLYTEX WATCH 60.25 above 60.25 for long term

buy kei industries with targets of 22.7 and for long term

buy ceat with targets of 108.75 once Rs.96 is broken (prelim bullish price objective )

buy dlf above 206.5 and sell below 206.50 (206.50 as pivot level)

buy piramal glass with targets of 126.45

watch bharti shipyard

a wedge format on aptech buy with stop loss of Rs.83 (bullish price objective Rs.100)

SHORT CASTROL WITH TARGETS OF RS.387 MAINTAIN STRICT STOP LOSS OF RS.514

watch grindwell norton bullish tgt price Rs.290

buy chettinad cement

buy OCL

Nifty Budget Analysis and Stock Tips 16th March 2012 , Nifty to hit 5600 ?

2012-03-15T13:37:00.000-07:00

16th March 2012 is what investors have been waiting for the " Budget Day " . Which is very dangerous for most day traders to either Make or Break their portfolio unless guided well with precise analysis !
At www.Dailynifty.in we simplify our language for all investors to understand our trading strategies and recommendations.

On Budget day our recommendation is the " Power Industry / The Energy Sector "

Top Picks (NOTE : PRICES ARE MENTIONED ACCORDING TO THE BOMBAY STOCK EXCHANGE)
( Stop loss need not be mentioned on Budget day for the stocks mentioned below )

1) Alstom Project :- Buy with targets of Rs.525 (Hold until April)
2) Buy CESC only above Rs.310.60 with targets of Rs.343)
3) BUY SJVN with targets of Rs.22.5 (HOLD UNTIL APRIL)
4) (WATCH ENERGY DEVELOPMENT COMPANY)
5) SELL TORRENT POWER WITH TARGETS OF 198.5 MAINTAIN A STOP LOSS OF RS.219
6) BUY RENUKA SUGAR WITH TARGETS OF RS.50 (HOLD UNTIL APRIL)

Nifty Technical Analysis 14th March 2012

2012-03-13T13:32:00.000-07:00

Buy IFGL Refractors with targets of Rs.43.80 and Rs.45 maintaining a Strict Stop loss of Rs.38. Current Market price is Rs.40.40.

Buy ATN International Only above Rs.1.06 with targets of Rs.1.40 Stop loss can be adjusted in between Rs.0.70 to Rs.0.80

Buy JPpower only once crosses above RS.44.6 or SELL if remains BELOW RS.44.6
Rs.44.6 is strong Pivot level

Sell Wipro with targets of Rs.420 and Rs.399.

Our Recommendation on the Nifty is to hold long positions as long as 5420 holds with next targets of +20 points ahead of today's closing price. However Nifty has strong resistance level at 5520, which once broken will lead towards 5600.
If 5520 is not broken we would have to wait for budget day for a turn around or a bounce back up . therefore watch 5520 levels !

Good luck trading ,

Trading strategies for the 14th Feb 2012

2012-02-13T14:01:00.000-08:00

The Sensex has way to move up another 350 pts after mondays close at 17772.84
with resistance at 18132 and Support levels at 17596 once broken would lead towards 17300

The resistance mark of 18132 is a very crucial level for a turning point in the markets
a break above 18132 will lead the Index towards 18440 and 19120.

The Midcap index is trading above its 200 day moving average which acts as a very strong
resistance point for Midcap stocks,Tte Midcap Index is positive as long as it
holds above the 6260 Mark with targets of 6340 6476 for the week. Supports lie at 6260 and 6153.

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buy gspl above Rs.80 with targets of Rs.92 , SL 79.80 CMP 84.9 (Duration 14 days)
buy escorts above Rs.86.75 with targets of Rs.92 and 100 (Duration 15-20 days)

Nifty Prelim Bullish price objective at 6900

2012-02-07T11:59:00.001-08:00

Nifty Prelim Bullish Price objective at 6900.

Click here to view Chart (Point and Figure charting)

Stock Tips 6th Febuary 2012

2012-02-05T15:00:00.000-08:00

Buy Shree Cement above 2323.95 once above 2323.95 targets are 2350 and 2450(Daily)

Buy century ply with targets of Rs.60 SL 53.80 (BTST)(Intraday)

Buy development credit bank with targets of 48 and 49

Buy VIP industries with targest of 124.9 with stop loss of 96.50 (Weekly)

Buy chambal fertilizers (Intraday)

Gold Is not A Hedge against Inflation But a Hedge against the Dollar!

2012-01-26T15:56:00.000-08:00

After the Fed's Speech The US Dollar went plummeting, Following a crash in the Bonds and T-notes crashing to new lows. An Increase in the Price of Oil and Major currencies against the Dollar will have an impact with the Asian stock market.
Look for our next targets towards 5400 on the Nifty by the End of March 2012.

Stock Specific : Gold took a U-Turn once again from its lows after Ben Bernanke's dovish speech currently trading at 1720 while I am writing this. Our next trades on the National Stock exchange will be to purchase Gold Stocks! and Gold mining Stocks!

Recommendation : Purchase Gitanjali at Current market price or the opening price on Friday once markets open.
Technical: the eight day money flow index has crossed its lows with FII funds flowing into Gold stocks In India.
RSI has strengthened crossing above RSI 36.50.

Recommendation :- Purchase Deccan Gold

Nifty January 2012

2012-01-13T06:29:00.000-08:00

The fourteen day period (Relative strength Index) RSI on the Nifty has risen above 50+ Levels towards 59.27 which Indicates a breakout on the Nifty above 4932 which acts as Pivot level for the month of January 2012.

Fibonacci retracement levels on the Nifty if broken above 4932 can lead towards 5024 and 5127. Recommendation : Stay long on the Nifty once 4930 level is Broken with targets of 5127 and 5400 till the end of March '12.

2011-12-30T05:58:00.000-08:00

WTI crude oil failed to sustain gain above 100 level and dropped sharply back below 99. Further loss is seen today after report showed unexpected rise in supplies. Inventories rose 3.9m barrels in the week ended December 23 as reported by the US Energy Department, comparing to consensus of -2.5b fall in stockpiles. Yesterday, API reported 9.5m barrels jump in inventories. Technically, the break of 99.37 minor support in TWI suggests short term topping. More importantly, the development indicates that recent consolidation from 103.37 is still in progress and is starting another falling leg. Thus, we'd probably see WTI crude oil pressured in near term back towards 95 and below. On the other hand, gold also takes out key support of 1535 made back in September on broad based dollar strength. The greenback strengthened strongly across the board today after decent by unimpressive Italian bond auctions. Gold would likely remain pressured in near term on dollar strength. However, technically speaking, it's now staying in key support zone of 1478.3/1577.4. We'd anticipate strong buying below 1500 psychological level to contain downside and bring at least a short term rebound attempt. Italy sold EUR 7.02b of 3- to 10-year bonds today, below maximum target of EUR 8.5b. Sales of 2022 bond hit max target of EUR 2.5b. Yield was just below the unsustainable 7% at 6.98% even though it dropped from November's 7.56%. Yield on the three year bond due in 2014 dropped from November's 7.89% to 5.62%. However, sales of 2014 and 2021 bonds fell short of the maximum target. This week's result so far firstly suggested that short term funding stress was eased for Italy, but investors are still uncertain on the longer term outlook. Secondly, the fact that the three year bond auction sourly missed target raised much concern that the ECB's EUR 489b three year LTRO fund are not channeled back into peripheral bonds markets. Eurozone M3 money supply rose less than expected by 2.0% yoy in November. On the data front, US initial jobless claims rose more than expected to 381k in the week ended December 24, the first rise in a month. Nonetheless, the figure managed to stay below 400k market. Prior week's figure was revised slightly higher to 366k. The four week moving average dropped to 375k, best number since June 2008. Continuing claims also rose 34k to 3.6m in the month ended December 17. Chicago PMI was steady at 62.5 in December. Pending home sales rose strongly by 7.3% mom in November. Natural gas storage dropped -81b. Eurozone M3 money supply rose 2.0% yoy in November.

2011-12-10T04:47:00.001-08:00

Nifty is holding onto strong support levels of 4840 and 4782. On the Monthly chart which shows a descending triangle on the Nifty reducing volumes which will eventually lead to a breakout eitherways on a date assumed in between January and April 2012. Retracement levels of Nifty are as follows R1 6340 R2 5721 R3 5458 R4 5332 R5 5225 R6 5150 PIVOT 4724 S1 4694 S2 4486 S3 4398 S4 4208 S5 3984 S6 3900 We are currently looking forward to a bounce back on the Nifty towards 5150 (R6) levels mentioned maintaining a stop loss of 4700, However buying is only recommended above 4784 levels. --------------------------------------------------------------

2011-12-10T04:17:00.001-08:00

The next key event would be the EU summit,The RBA lowered the cash rate for a second consecutive month, by -25 bps to 4.25%, amid worries that the financial turmoil in Eurozone would further drag down economic conditions in Australia. Policymakers revealed their concerns about the sovereign debt crisis in the 17-nation Eurozone as the problems are 'likely to weigh on economic activity there over the period ahead'. Deteriorating financial market conditions and 'precautionary behavior by firms and households' will likely result in material slowdown in global economic growth. emerging markets were also affected by economic and debt problems occurred mainly in the Western hemisphere. Growth deterioration made China cut the reserve requirement ratio (RRR) for all depository financial institutions by -50 bps, effective December 5, 2011 as reduction in inflationary pressure has lowered the need for tightening monetary policy. crude Oil: Oil prices traded steadily for most of the week but plummeted Thursday as the ECB meeting disappointed. WTI-Brent crude spread remained steady at around $9/bbl. The gap has been moving at levels of $20/bbl or above for first 10 months of the year, only to narrow sharply in mid-November due to the acquisition of 50% of the Seaway pipeline by Enbridge and the announcement of a reversal in crude oil flows at the pipeline. The reversal, to be started in 2Q12, would divert crude oil out of Cushing and into the Gulf Coast with initial capacity of 150K bpd. The planned expansion will bring total capacity to 400K bpd by early 2013. The ease of supply bottleneck at Cushing after the reversal would reduce the huge stockpile in the area and support WTI crude oil prices. China, as the world's biggest growth driver and the second largest oil consumer, is facing economic slowdown as shown by recent economic data. The moderated oil demand in the country should have much impact on the world market. According to the IEA, China monthly apparent demand climbed only +1.90% y/y in September while that growth in August was revised down slightly to +5.60%. Consumption in September was driven by higher demand in gasoline, jet/kerosene and gasoil. the Chinese government has started to unwind the tightening monetary policy adopted earlier in the year, seeing moderation in inflation and weakening in manufacturing activities. The PBOC lowered requirement ratios for banks in early December and is expected to focus its strategy in stimulating economic growth. In 2012, China's oil demand would be strengthened by not only commercial demand but also SRP purchases. It is expected that China will resume strategic restocking for its Phase 2 tanks (with capacity of 20M barrels) in Dushanzi. Natural gas remained under pressure. The DOE/EIA reported that gas inventory dropped -20 bcf to 3831 bcf in the week ended December 2. Stocks were +102 bcf above the same period last year and +307 bcf, or 8.7%, above the 5-year average of 3524 bcf. Separately, Baker Hughes reported that the number of gas rigs fell -36 units to 820 in the week ended December 6. Oil rigs added +29 units to 1161 and miscellaneous rigs added +1 unit to 5, sending the total number of rigs to 1987 units. Directionally oriented combined oil, gas, and miscellaneous rigs stayed flat at 217units while horizontal rigs decreased -5 units to 1151 and vertical slipped -1 unit to 619 during the week. Precious Metals: Gold continued its directionless movement last week. Gold's trading pattern in this wave of sovereign debt crisis was quite different from those in 2009 and 2010, During the heights of debt problems in the Eurozone in the past 2 years, gold surged in tandem with the strength of the US dollar amid risk aversion. However, gold moved more in line with other commodities this time, i.e. fell as USD rose. The relentless rise of gold price since the beginning of the year and an eventual reach of a record high of 1923.7 in September has sent the metal to an overvalued territory. CME's margin hike attempting to reduce market volatility also hurt appetite. Yet, we maintain our bullish outlook on gold as long as global central bankers continued to keep interest rates low and opt for easing monetary policies. Low interest rates reduce the opportunity cost of holding gold and money printing measures implemented by central banks is equivalent to currency depreciation. These factors would trigger investors to flee to gold investment.

9 December 2011

2011-12-08T14:52:00.001-08:00

ECB lowers interest rates down to 25 basis points to 1.0% vs 1.25% Previous Inflation is likely to stay above 2% for several months to come, before declining to below 2%. The intensified financial market tensions are continuing to dampen economic activity in the euro area and the outlook remains subject to high uncertainty and substantial downside risks. In such an environment, cost, wage and price pressures in the euro area should remain modest over the policy-relevant horizon. At the same time, the underlying pace of monetary expansion remains moderate. Overall, it is essential for monetary policy to maintain price stability over the medium term, thereby ensuring a firm anchoring of inflation expectations in the euro area in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. TECHNICAL ANALYSIS (NIFTY) after a steep fall of over a 150 points of the Nifty, our recommendation :- is building long positions with maintaining a stop loss of 4934 targeting 4980 23.6% Fibonacci retracement and 5008 38.2% Reversal levels. A breach of the 5050 level in the Nifty will bring way towards 5150, pivot level lies at 5032. Technical Analysis and Stock picks for the 9th December 2011 1) Buy Reliance Industries Above Rs.778, with targets of Rs.800. Maintain a Stop loss of Rs.777. 2) Buy Dish TV with targets of Rs.68 (December Futures only) 3) Buy Dabur with targets of Rs.101, Maintain Stop loss of 96 4) Sell Reliance Infra below 394 with targets of 385. ------------------------------------------------------------------------------------------------------------------

NIFTY MUHURAT TRADING DIWALI OCTOBER 26 2011

2011-10-26T03:28:00.000-07:00

After the announcement of The EU Summit being cancelled, Traders panicked due to which Eur/USD and Dow Jones tanked.

Muhurat Trading markets will open in positive since European markets have shown signs of stability despite procrastinating talks on EURO zone debt crisis.

However we should watch out for data during 5:30 PM and 6:00 PM which will bring in negative news for the markets since Data from New Zealand (Business Confidence Index) is assumed at 13.5 VS 30 MoM. Whereas Australian Consumer Confidence Index does not show much of a positive outcome. Therefore,

Our Nifty Levels are

5230 Resistance
5200 Pivot
5169 Support

Recommendation : Buy Nifty 5100 Call
Buy Nifty 5200 Put
Nifty should close around 5169.

Nifty Strategy for Expiry October 26th 2011.

2011-10-24T14:15:00.000-07:00

Above is a Point and figure chart of Nifty. Nifty shows signs moving towards 6000 levels with short term resistance of 5200 and 5420. However these levels will act as strong resistance, Following a breakout would lead to the level of 6000.

Nifty Strategy For expiry october 25th 2011 :-

Nifty resistance lies at 5169, Once this level is broken we would see 5220 in the near term.
Nifty Closed at 5098, Our strategy for the 25th of October 2011 is to hold on to long positions keeping a strict stop loss of 5038 in Mind.

Buy Nifty 5000 (CE) call
Sell Nifty 5300 (CE) Call

Market Firm Until EU Summit on the 26th Oct 2011

2011-10-24T13:55:00.000-07:00

Market sentiment remained firm on Monday as investors awaited the EU summit on October 26. There has been much speculation of measures to be announced to contain the intensifying sovereign debt crisis. While the advance in financial markets signaled optimism over the outcome, we would like to advise on the possibly of disappointment as it appears that policymakers remained divided.

Major issues to be discussed during the summit include the offer of the 6th tranche of the Greek rescue fund, the plan of EFSF leverage and recapitalization of European banks. Greece will likely be granted the 6th tranche of funding by the EU/ECB/IMF troika. The overhang is whether to extend the private sector involvement, currently at 20%, into the second Greek program. There have been talks that the EU will use 10-30% of the 400B euro EFSF for first-loss guarantees. Moreover, the fund will be leveraged up to to 2 trillion euro. Concerning bank recapitalization, it's possible that banks will be given 6-9 months for increasing their Tier 1 capital ratio to 9% after a Greek debt haircut. Countries such as Spain, Italy and Portugal may be offered support from the EFSF regarding bank capitalization. Policymakers may consider pooling capitals for funding banks in the medium-term.

In the US, Fed's Vice Chairman Janet Yellen mentioned about QE3 in a speech, citing 'securities purchases across a wide spectrum of maturities might become appropriate if evolving economic conditions called for significantly greater monetary accommodation'. Yellen remained concerned about the country's economy. She stated that the recovery is 'disappointingly slow' and the growth in job market will remain 'tepid in the coming months. Particularly, European debt problems are 'worrisome' and 'the potential for such adverse financial developments to derail the recovery creates… significant downside risks to the outlook'.

Commitments of Traders

Speculators were bullish on the energy complex in the week ended October 18. Net length for crude oil futures climbed +23 310 contracts to 144 371. Net lengths for heating oil and gasoline rose +12 635 contracts to 14 729 and +7 043 contracts to 52 000, respectively, during the week. Net short for natural gas futures decreased to 168 643 contracts.

Speculators were bearish on the gold and silver but bullish on PGMs. Net length for gold futures dropped -7 524 contracts to 126 978 while that for silver slipped -1 596 contracts to 10 352. For PGMs, net lengths for platinum added -503 contracts to 20 180 while that for palladium futures gained +209 contracts to 7 162.