TRADING STRATEGY FOR 30TH JULY 2010
(Based on technical by O P AGARWAL)



Markets end flat with cautious optimism


The market after flat opening yesterday moved in narrow band with the investors remaining wary of making any fresh position despite fairly impressive Q1 results from corporates, investors were mostly seen treading cautiously and using even mild rallies to trim down positions. The marginal decline in food inflation and revival of monsoon rains helped buoy up sentiment to an extent. The Sensex, after moving in a choppy fashion finally ended the session yesterday at 17992 gaining a modest 34 points after touching a high of 18,013 in afternoon trades. The Nifty, which surged to 5415, ended at 5408, netting a marginal gain of 13 points. Meantime, according to the data released by the government yesterday, the food inflation declined in the week ended 17 July 2010, falling to single digit levels for the first time in many months, while inflation in the fuel group remained elevated. Inflation in the Primary Articles group also fell, the data revealed. Inflation in the Food Articles group stood at 9.67% in the week ended 17 July 2010 versus 12.47% in the previous week. Inflation in the Primary Articles group was at 14.5% as against 16.48% in the week ended 10 July 2010 while inflation in the Fuel & Power group rose to 14.29% from 14.27% in the preceding week. The market breadth was slightly negative as out of 3018 stocks traded on BSE, 1476 stocks declined and 1410 stocks posted gains. 132 stocks ended flat. The markets may now consolidate at current levels waiting for some positive trigger but may react on global cues.


NIFTY FUTURE (Last close 5421.70)
The counter after flat opening yesterday moved range bound till early noon when a spate of buying in front line stocks pulled up the indices to day’s high at 5427. The counter thereafter remained sideways and finally closed the session flat with marginal gain of 18 points. The counter to gain strength needs to trade and remain above 5433.75 whereby it may move up to 5446/5462. Strong support for the NF exists at 5390.25 which if breached decisively with volumes then NF may slide to 5369/5356.




ICSA FUTURE (Last close 131.70)
The company which installs systems to curtail losses in electricity networks, expects India's metered data acquisition business to throw opportunities worth 20 billion rupees and it is eyeing 4-5 billion rupees worth of orders under the segment, as per company’s managing director in a recent statement. The firm, which has a current order book size of 18.34 billion rupees, is also transforming itself from an executor of low-end projects to high-end power projects, he further added. Meantime, the stock after continuously sliding during the past fortnight closed yesterday in the positive with very high volumes. The stock may move up to 136/139 once it trades and remain above 132.25. Strong support for the stock exists at 129.00.

PANTALOON RETAIL FUTURE (Last close 459.70)
The stock after remaining range bound during the past four trading session closed yesterday above its short term trend line with high volumes. The stock appears positive on charts and may move up to 463/467 once it trades and remains above 460.50. Strong support for the stock exists at 456.25.

DEAR READERS,
PLEASE WATCH THE MARKET TREND AND USE YOUR
OWN DISCRETION BEFORE TAKING A TRADE.
Protect profits with trailing stops and cut losses fast.
Avoid adding contracts in loss making trades

Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
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