NIFTY OUTLOOK (23rd, August, 2012)

NIFTY SPOT SUPPORTS AT 5397: NOW WHAT NEXT ?

Nifty spot closed at 5415, which is above the major support level at 5397 with normal volume. Intraday traders can buy nifty future with the support of 5397 nifty spot.  Nifty is now have a open garden till 5600 level until it doesn't break and close below 5397 with normal volume. On the other hand, stochastic is trying to maintain up trend which shows how stochastic is struggling to make bullish trend. MACD is making zig-zag pattern, first time in a year, which is not seriously giving any trend. If we look in to the support and resistances, support is defined whereas resistance will be at 5448 for next trading session.

Happy Trading !!

Megha Investments & Research Team

NIFTY OUTLOOOK (21st August, 2012)

Every Eyes On Nifty Spot: Will It Reach To 5600 ?

In previous trading session, we have seen some choppy volatility, both buying and selling pressure on uncertainty of Government and economical issues. Nifty spot closed at 5366 after touching to 5400 which was crucial level for bullish trend. But after all, Nifty spot closed below the major trend line resistance. After seeing this movement, we can't conclude this report by saying bullish trend. But it can be said that 5397 is made a very crucial level for bullish trend. If we analyze daily lower indicators, MACD is still showing upward move whereas stochastic is making zig zag pattern for uncertain trend. In next trading session, Intraday traders are advised to sell nifty future at higher levels if nifty spot opens below 5400 level. Trade in lower volume due to higher uncertainty of trading session.

Happy Trading !!

Megha Investments & Research Team

NIFTY OUTLOOK (17th August, 2012)

Nifty Spot Trying To Sustain: But Fails

The NSE Nifty spot closed at 5363 after opening below 5390 (In previous report, it was indicated as major opening level: if opens above 5390, nifty will move towards 5600). Still nifty spot is above 5 day exponential moving average and it can't be said that nifty is in bearish mood. On the other hand, is we see slow stochastic, it is in bullish phase with good buying pressure. The impact of this situation, price line should go up and break the resistances of 5390/5421. RSI, world's most popular and trusted indicator, shows the strength and closed at 63 which is still showing the up side movement of price line. On this trading session, nifty has same story as indicated in previous report. If nifty spot opens above 5390, index will be favorable for bulls till 5600 level. But at least, once nifty should break the major hurdle and close above that with normal volume.

NIFTY OUTLOOK (16th August, 2012)

Nifty spot bullish till 5600: if open above 5390

The NSE Nifty spot closed at 5380, which is a very crucial level for next day's opening. If today nifty spot opens above 5390, nifty will have a highway till 5600 level . Nifty is very bullish from some couple of days, if we see daily movement. On the other hand, stochastic is making again upward cutting move for bullish trend and another indicator, MACD is also showing strength. MACD is not showing fresh cutting upward but showing a positive indication for bulls. On this trading session, nifty can open gap up and show the buying pressure. Intraday and Medium term traders are advised to long in nifty future to make healthy profits with the support of 5257.

Happy Trading!!!

Megha Investments & Research Team

NIFTY OUTLOOK (14th August, 2012)

Nifty Bounced Back: Will It Break Trend Line Resistance?

The NSE Nifty spot closed at 5348 with good buying pressure. As indicated in yesterday's report, Nifty spot showed the upside movement and it was given better idea as buy in deeps. Now, this is the time to break the trend line resistance to move forward. If we analyze the lower indicator stochastic, it is showing the negative diversion for favorable movement and will cut soon from the level of 70 which is nearer to overbought situation. Whereas, MACD is supporting the view of positive movement by fresh cut upward. This is the situation where intraday traders may face trouble to enter in long and short Nifty future position. They are not advised to trade in intraday for this day for safe trading. But, Nifty spot price line is having significant upside potential. Traders are advised to keep in mind the major resistance at 5397 which is a trend line resistance, indicated in given chart.

Happy Trading !!

Megha Investments & Research Team

Market Report of Last Week

 The NSE Nifty spot closed at 5348 with good buying pressure. As indicated in yesterday's report, Nifty spot showed the upside movement and it was given better idea as buy in deeps. Now, this is the time to break the trend line resistance to move forward. If we analyze the lower indicator stochastic, it is showing the negative diversion for favorable movement and will cut soon from the level of 70 which is nearer to overbought situation. Whereas, MACD is supporting the view of positive movement by fresh cut upward. This is the situation where intraday traders may face trouble to enter in long and short Nifty future position. They are not advised to trade in intraday for this day for safe trading. But, Nifty spot price line is having significant upside potential. Traders are advised to keep in mind the major resistance at 5397 which is a trend line resistance, indicated in given chart.

NOW READ LAST WEEK'S MARKET REPORT AND OPTIONS STRATEGY HERE BELOW. TO GET THIS WEEKLY REPORT BEFORE MONDAY MARKET OPENING, PLEASE  REGISTER FREE ON OUR WEBSITE WWW.MEGHAINVESTMENTS.COM

Last week we have recommended you to go for long with nifty and infrastructure stocks. The target of Nifty and bank nifty had been achieved. The rally could have been extended more but monsoon is now is the biggest worry for India. Due to the high inflation and low monsoon in India, the prices of agriculture commodities are going to high. And auto sectors are going to affect directly. August will be the last month for rain. If this month fill up the gap of rain of last two month Then GDP can be re modified. India required a good rain in the month of august and only 20 days are left now. On the other we are seeing a good rally in international market; specifically NASDAQ and DOW JONES are both trading at their high of year. We have seen a good 10 % rally in European market in last 30 days. This all are very significant factor. Only worry is rain which will decreases the progress of GDP. Now big broking houses are reducing the figure of GDP from 8 % to 5.5%. But I think Indian financial system will overcome all this worry and my expectation for GDP is in the range of 6 % to 6.75 % [yearly]. Investors can play a range bound session and for very low price trade. No big moment can be seen in this expiry. Stock specific action can be seen. 

·         Trading strategy for nifty:

Scrip	Instrument	Strike price	Purchase price	Stop loss	Target
Nifty	Call- buy	5400	45 to 50	5270 cash	100
Nifty	Put – sell	5100	10 to 12	5220 cash	Zero
Nifty	Call – sell	5500	16 to 18	5435 cash	Zero
Nifty	Put- sell	5200	23 to 25	5250 cash	Zero

·         Trading strategy for bank nifty:

Scrip	Instrument	Strike price	Purchase price	Stop loss	Target
Bank Nifty	Call- buy	10500	140 to 150	10380	250
Bank Nifty	Call – buy	10600	95 t0 100	10400	180
Bank Nifty	Call – sell	10700	60 to 70	10625	Zero
Bank Nifty	Put- sell	10200	86 to 90	10380	10

·         Stock specific strategy: bhartiartl

Buy future of bharti artl at 257

Buy call of bhartiartl of 280 strike price around 1.50 to 2.50

Sell put of bhartiartl of 260 strike price around 10

Target: for bhartiartl future 278

           : For 280 strike price call 13

           : For 260 strike price put 1 

Stop loss for all three trades will be 248 levels in cash closing basis

·         Stock specific strategy: state bank of India

Buy future of sbin at 1900

Buy call of sbin of 1950 strike price around 30 to 33

Sell put of sbin of 1850 strike price around 30 to 33

Target: for future 1975

           : For 1950 strike price call 80

           : For 1850 strike price put 3

Stop loss for all three trades will be 1878 in cash closing basis

·         Stock specific strategy: sesa goa

Buy future of sesagoa at 192

Buy call of sesagoa of 200 strike price around 2 to 3

Sell put of sesagoa of 180 strike price around 1.5 to 2 rs

Target: for future 203

           : For 200 call 9

           : For 180 put zero

Stop loss for all three trades will be 185 in cash closing basis.

·         Stock specific strategy: HDIL

Buy future of HDIL at 81

Buy call of HDIL of 85 strike price around 1.75 to 2 rs

Buy two call of HDIL of 90 strike price around 0.90 to 1.2 rs

Sell put of HDIL of 75 strike price around 1.20 to 1.5rs  

Target: for future 86

           : For 85 call 8

           : For 90 call 4

           : For 75 put zero

Stop loss for all four trades will be 78 in cash closing basis.

·         Stock specific strategy: NCC

Buy future of NCC at 40.25 to 40.50 for the price target of 44.25 stop los will be 37.5 closing basis in cash.

·         Stock specific strategy: tata motors

Buy call of tata motor of 240 strike price at 4rs to 4.50 rs

buy call of tata motor of 250 strike price at 2 rs

Sell put of tata motor of 220 strike price at 2.5 to 2.75rs

Target          : For 240 call 9.50

           : For 250 call 5.50

           : For 220 put zero rs

Stop loss for all four trades will be 223 in cash cl

NIFTY OUTLOOK (13th August, 2012)

Nifty Trying To Sustain: But Macro Lowers The Support

The NSE Nifty spot closed at 5320 after choppy volatility on the weekend. Opened in gap down and closed nearer to previous day's close, which gives clear idea about consolidation till some more time. On monday, Nifty spot will have to fill the gap of 5220, or if it won't fill, the index will have to consolidate more in this coming week. If we look in to the lower indicators, position in MACD is still as it was, it is cutting upward. But Stochastic is making fresh cut from upside which shows the consolidation time for a period of approx 3-4 trading sessions. Intraday traders are advised to follow buy on deeps in Index future.

Happy Trading!!

Megha Investments & Research Team