TRADING STRATEGY FOR 29TH JULY 2010
(Based on technical by O P AGARWAL)



Markets close lower on profit taking

The market opened flat to positive yesterday but slipped in the negative within minutes in early trades on selling pressure. The Q1 numbers announced by the bellwether Reliance despite being 32% higher disappointed the market pundits after its guidance to maintain gas production at 60 mmscmd (million standard cubic metres of gas a day) for the next 9-12 months and the company's lower-than-expected Q1FY11 GRMs. Industry experts seemed further concerned that it would take the firm longer to increase gas production at the KG-D6 block, off the east coast. The stock shed 3.1 percent, the most in three months and dragged the indices since the stock carries the heaviest weight on the indices. The Sensex, lost 120 points yesterday and closed the session below 18K at 17957. The Nifty declined 0.6 percent to 5,397.55 points. Declining stocks outpaced gainers in a ratio of 1.4:1 in the broader market yesterday. The market may remain volatile today in view of expiry of July F&O series and therefore, readers are advised to trade with caution and remain stock specific.

NIFTY FUTURE (Last close 5394.40)
The counter after flat opening yesterday remained range bound till early noon when a sharp sell off in front line stocks led by the bellwether Reliance pulled down the NF to day’s low at 5385, very near to the level indicated in these columns. The NF however, managed to close above its intermediate weekly support and hence may show recovery today once it trades and remains above 5408.75 whereby it may move up to 5433/5454. Strong short term support for the NF exists at 5377.25 which if breached decisively with volumes then NF may slide further to 5358/5339.




DR REDDY AUGUST FUTURE (Last close 1339.05)
The stock lost more than 200 rupees after sliding continuously during the past seven trading sessions but it appears to be consolidating at current levels as is evident on charts as the stock closed yesterday with positive bias gaining marginally. The stock appears good on charts and may move up to 1348/1356 once it trades and remains above 1341.75. Strong support for the stock exists at 1333.25.

CENTURY TEXTILES AUGUST FUTURE (Last close 459.85)
The stock after consolidating during the past two trading sessions closed yesterday above its short term trend line with very high volumes on sustained buying. The stock appears positive on charts and may move up to 467/472 once it trades and remains above 460.75. 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.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.