Vijaya bank has declared its Q3 results on Wednesday and this quarter was a lag for the bank. The Q3 profit of company has declined by 18% to Rs.124 crore against Rs.152 crore in same period last year. Net interest income (NII) declined to Rs.475 crore, major dragger was the NPA (Non performing asset) it stood at Rs.997 crore against Rs.599 crore in the previous year. This was fundamentals, now lets get into the technical analysis of the stock. On charts we see vijaya bank has struck at a resistance zone of 56 level. This level is 61.8% Fibonacci retracement level, as price action is below this level, it will serve as major resistance, So any move towards this level will attract selling pressure. Therefore we advice traders to short sell Vijayabank future in range of 55 to 56 for positional target of 52 and then 51 levels. Stop loss can be placed just above 57.5 level. On daily chart slow stochastic indicator is in overbought zone, so we have this as confirmation, again if you look at the open interest data of vijaya bank february future then there was addition of short positions (Stock was down and open interest was up).
Nifty February future was trading around 5200 level and was facing major resistance there, so even there could be selling opportunity for target of 5150 level. Now traders can learn technical analysis online in just 6 days, contact us on +91 – 99 70 77 77 89.

Related Article:

1. HDFC Bank Reports Excellent Q4 Results on Strong Loan Growth
2. Wipro Q1 Results Declared for FY12 Net Profit Down by 2.9%, Sell Wipro Stock
3. Axis Bank Q3 Net Profit Jumps 35.82% to Rs.891 crore.
4. Short SBIN for Intraday Trading: Sell State Bank Of India Near 1900 Target 1870

Reserve Bank of India (RBI) keeps the interest rates unchanged today on January Credit policy but it has cut CRR (cash reserve ratio) by 50 bps (basis points), this will infuse liquidity in the banking system also this has indicated that RBI has shifted its policy for talking inflation to pumping growth. Today’s cut has lowered the CRR to 5.50% from previous 6.00 % and this will result in pumping Rupees 320 billion of liquidity into the banking system. RBI has also signaled that lowering the interest rates may be considered in future.

Negative outlook is, RBI has also lowered its GDP growth forecast for the FY11 to just 7 % from its previous target of 7.6 percent, last year Indian economy has grown by 8.5%. Also no change in wholesale price index (WPI) inflation at 7% for FY11-12. Moreover risks of inflation is getting high as global crude oil prices are moving higher.

Looking at this move all the banking stocks has advanced sharply, State bank, Icici bank, Axis bank and many other were trading with 3 to 5% gains today.

Related Article:

1. RBI Hikes Interest Rates by 25 bps on 17 March 2011
2. RBI Hikes Interest Rates by 50 bps on 3 May 2011
3. RBI Hikes rates by 25 bps on 25 January 2011
4. RBI Hikes Interest Rates Today 26 July 2011, REPO and Reverse REPO Hiked by 50 bps, Banking stocks down

Intraday trading setup found on state bank of India SBIN charts, Stock has been facing resistance near 1900 level which is 61.8% Fibonacci retracement level. Also another confirmations for this short position is Bank Nifty is also trading near resistance of 9200 level, even there we may see correction of about 300 points. Today Nifty future is trading at psychological level of 5000, some profit booking is still expected after 10 days rally. If we look at open interest in SBIN January future, we see there is 8% jump in open interest suggesting addition of short positions. Trading in the direction of medium term trend we keep looking for selling opportunities, this time its near strong resistance of 1900 level. Our advice to traders is short sell SBIN in cash or future depending on trader’s risk enter short near 1900 level for trading target of 1877 and then 1867 level. Stop loss orders can be placed just above 1914 level. The trading idea discussed here is completely based on technical analysis, if you wish to learn technical analysis call us at +91-9970777789. Nifty future may consolidate by trading sideways in today’s trading session. Banking sector may see short positions being built today, so stay cautious and track open interest data carefully.

This is intraday trading idea on state bank of India, so positions must be squared off today itself.

Related Article:

1. How is SBIN Stock for Intraday Trading Today: Short Sell State Bank Of India at 1885 for Target 1858
2. DLF Stock for Intraday Trading Today: Sell DLF Near 186 for Target 181, Technical Analysis Suggest Short DLF
3. Intraday Stock Trading For Today: Short Sell TATAMOTORS Near 812 for Target 801, Technical Analysis On Tata Motors Ltd
4. Intraday Stock Trading For Today: Short Sell RELCAPITAL Near 411 for Target 406, Technical Analysis Stock

Stand and Poor’s (S&P), one of the 3 largest rating agency, has cut the rating of France and 8 other Euro-zone countries so total 9 countries were downgraded on last Friday. France has lost its AAA with one notch so France now has AA+. While Italy and Spain were downgraded by two notches. This is very bad news for Euro-zone economies. S&P has warned months ago about the possible downgrades as dozen of countries were under the watch for negative outlook. Italy and Spain were downgraded by two notches to BBB+ and A respectively. Slovakia, Austria, Slovenia and Malta were cut by one notch. Another small country Cyprus lost its ratings by two notches. Portugal’s rating was also cut by two notches said S&P. Germany, Belgium, Luxembourg, Estonia, Ireland, Netherlands and Finland are the countries who were able to keep ratings unchanged.

EURUSD pair made a low of 1.2623 on Friday, just after the news of downgrade was confirmed by French authorities. This was new low on EUR/USD after September 2010. WE may see much lower levels next week on Euro. We also see stock markets across globe to weaken due this move by S&P, we are advising traders to short nifty future or buy nifty 4900 put options near 80 levels for targets as 135 and then 160 level, we will also advice traders to place their stop loss for this trade just below 53 level.

Related Article:

1. Nifty Futures Technical Analysis and Fibonacci Retracement for Next Week 8 August 2011, Target 4800 level, S&P Downgrades US Economy

Nifty future has its upside capped at 500 Level for this January series expiry, but even near 4900 level attracting selling pressure in Nifty future and heavy weight stocks like Reliance, Infosys, TCS, Wipro, etc. Taking the advantage of this selling pressure we would advise traders to Buy Nifty 4900 put options near 104 level for positional targets as 150 and then 185 levels, Also exit this position if nifty future trades above 5000 level. The open interest in Nifty future also increased by 6% this indicates short positions were added in nifty future today. Also 4900 zone has previously acted as strong resistance and even today nifty future was facing hurdles to move towards it. Major news that were released today was the IIP numbers and indicated that core industries saw growth, another event was the Quarterly result of Software giant Infosys, Infosys numbers were inline to the estimates however the stock was trading lower by 6.5%. Reliance industries was major dragger in Nifty. Traders must stay cautious as near term market may turn volatile as short term trends need some consolidation may be 1 or 2 sessions. In this period of consolidation traders must watch the open interest in nifty futures and nifty 5000 call option and nifty 4900 call option. Trading idea discussed here is based on Technical analysis, If you want to learn this call us on +91-99 70 77 77 89.

Free Nifty options analysis: Buy Nifty 4900 put option near 104 level for targets of 155 and 180 level, Stop loss must be placed near 80 level.

Related Article:

1. Nifty Options Stratregy for November Series, Buy Nifty 4900 Put and Nifty 5300 Call
2. Nifty Options Stratregy for F&O Expiry of September Series, Buy Nifty 4900 Put near 26 Level
3. Nifty Future Major Resistance at 5000 level, Short Selling opportunity in Nifty Futures December Series
4. Nifty Options Trading Stratregy, How to Trade EU Summit News Events Using Options, Buy Nifty 4800 Put and Nifty 5000 call

Today’s trade setup is purely technical analysis on Reliance Industries. Looking at Reliance daily chart we see stock has previously taken support near 700 level, However this support may not give immediate rebound, but consolidate first and then rebound. Chart suggest we are already in consolidation near 700 level, if we switch to weekly chart we see current price action is just taking support at 100 EMA (Exponential Moving Average). Also on carefully watching daily chart you can spot a bullish divergence on RSI (Indicator is pointing higher whereas price action is lower), hence a possibility of pullback. Another confirmation that boosted our confidence on trade was open interest data on Reliance January Future contract. On open interest front, we have seen more than 7% jump in open interest, this may be long positions build up. Even we have seen bullish divergence on weekly chart of NSE Defty index, this Defty index is nifty in form of dollar, i.e dollar weighted index. So there is probability that bounce on major indices is near, hence reliance would be out-performer in that rebound. We will recommend traders to take advantage of this move using Reliance futures January contract, hence Buy Reliance Future near 706 to 709 level for targets as 735 and then 742 level. It is highly recommended to place stop loss just below 695 level.

Traders must stay extremely alert as we are taking trade against the trend.

Related Article:

1. Nifty Futures Must Find Support near 4800 level and Consolidation is more Likely from These Levels, Sharp up move not Expected
2. Nifty Future May Find Resistance at 4800 level January Series, Short Sell Near 4800 Level
3. RELIANCE Stock for Short Term Trading: Short Sell Reliance Ind November Futures at 885 for Target 863
4. Right Time to Buy HDIL December Series Future, Price Action Testing Support of 62.65 Level