TRADING STRATEGY FOR 12TH OCTOBE R 2009
(Based on technical by O P AGARWAL)


Q2 earnings crucial to set market trend

Markets last week closed lower with negative bias despite bonus announcement by Reliance Industries and better than expected Q2 results by the IT giant Infosys Meantime, the company has revised upward its earnings guidance. While the Sensex ended the week with a loss of nearly 500 points or 2.87%, the Nifty too closed lower by about 138 points or 2.71%. The rupee appreciation during the last week too affected the market sentiment. The week may see sector specific activity based on Q2 results. Market participants are hopeful that Q2 results from the corporate sector will be better than expected in view of advance tax paid by them. Meantime, HDFC, HDFC Bank, Bajaj Auto, Axis Bank, Ultra tech etc., will announce their Q2 results during this week. Further, the IIP data for August 2009 will be announced today by the government which may have significant impact on the market this week. Meanwhile, readers are advised to trade with caution in view of high market volatility and avoid building large positions.

NIFTY FUTURE (Last close 4934.50)
The counter closed the week with dismal note losing 135 points despite bonus announcement by Reliance Industries and better than expected Q2 results by the IT giant Infosys. The counter witnessed heavy profit booking on the last two trading sessions of the previous week as investors preferred to wound up their positions ahead of festive season. However, the NF appears moderately positive on weekly charts and may move up after consolidating at current levels. Intra day trading levels for paid subscribers only.

CENTURY TEXTILES FUTURE (Last close 481.80)
The company is a diversified one which makes cotton textiles, yarn, denim, viscose filament rayon yarn, tyre cord, caustic soda, sulfuric acid, salt, cement and pulp & paper. The company owns prime property in the heart of Mumbai worth crores of rupees which may be commercially developed by the company. The company’s profit rose 104.74% to Rs 141.62 crore in the quarter ended June 2009 as against Rs 69.17 crore during the previous quarter ended June 2008. The company hopes to do well in the remaining quarters. Meantime, the stock after moving range bound during the past few trading sessions fared positive on Friday last gaining over one and half percent with high volumes. The stock appears positive on charts and may move up to 493/501 once it trades and remains above 483.75. Strong support for the stock exists at 479.25.

RENUKA SUGAR FUTURE (Last close 195.70)
The company is a fully integrated manufacturer of sugar, power and ethanol. It produces refined sugar for direct consumption and industrial usage in Europe and Africa. It has two integrated refineries with capacity of 1000 tons per day (TPD) each at Munoli and Athani in Karnataka, besides a stand-alone 2000 TPD refinery at Haldia in West Bengal. The company’s net profit soared 165.7% to Rs 61.10 crore over Q3 June 2008. The stock of the company closed on Friday last flat with marginal gain after remaining range bound during the previous few trading sessions. The stock appears positive on weekly charts and may move up to 203/207 once it trades and remains above 197.75. Strong support for the stock exists at 193.25.

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