The Professional Ticker Reader

These are stocks that we expect to out-perform the markets. Cash and derivative strategies are advised thereon. Please stay online to enable loading of graphics from our servers. Please also read the trading tips section at the end of the newsletter.

ACC - This cement major has been a frequent recommendation in the recent past as the earlier editions dtd Sept 11, Oct 23, Nov 21, Dec 05 and Dec 12, 2004. Click here to view the previous reports. The scrip has performed as per our expectations and has rewarded bulls. The noteworthy aspect about this scrip is the lifetime high closing achieved on the monthly charts. The highs achieved in the 1992 boom failed to see a closing at the current levels. The scrip enjoys high relative strength of 173 ( base = 100 ). We recommend a buy for the adventurous trader / investor.

Bajaj Auto - this 2 wheeler major was recommended in earlier editions dtd Sept 19, Sept 26, Oct 03, Oct 10, Dec 05, Dec 12 and Dec 19, 2004 and has performed exceedingly well. Click here to view the previous reports. Technical analysts will note how the scrip has broken out of a congestion level after managing a conclusive close above the 1070 levels. The scrip enjoys a high relative strength of 206 ( 100 = base ) and the oscillators point towards a further upside in the scrip. We recommend a hold / buy on declines on this counter.

BPCL - This PSU refining major was recommended in the daily edition Dtd Dec 24 and has shown a marginal jump in the short term. The main trigger will be the softening crude oil prices which are keeping the refining scrips bullish. Technical analysts will note how the scrip quotes above the 52 week SMA and is trading above the 7 month congestion levels. A conclusive close above the 450 mark will see an acceleration in the stock. We recommend a bullish bias on the counter.

HDFC Bank - This private banking major was recommended at Rs 400 levels in our earlier edition dtd Sept 19, Oct 03, Nov 07 and Dec 12, 2004. Click here to view the previous reports. The scrip has been a superlative performer and will gain from the bullishness in the sector itself. Technical analysts will note the very high relative strength of 1220 ( 100 = base ) and the continous rising tops and bottoms formation. The scrip is a buy for the patient investor / trader.

ICICI Bank - this scrip was recommended in the daily edition last week as the scrip has signalled a breakout above the 369 levels. Technical analysts will note how the scrip has a very high relative strength of 836 ( base = 100 ) and has achieved a closing at it's lifetime highs. That shows further momentum in the counter. The oscillators are showing uptrend and buying is recommended on declines.

Mah & Mah - This scrip has been our star performer and has returned superlative profits to bulls in the recent weeks. We recommended this scrip atleast 15 % lower vide our earlier editions dtd Sept 19, Nov 14, Nov 27, Dec 05, Dec 12 and Dec 19, 2004. Click here to view the previous reports. The positive newsflow continues to trickle in with the acquisition of Jiamling tractors ( China ), procurement of arms manufacturing license for defense contracts. The falling crude prices are an additional bullish trigger for the stock. Chartically, the scrip shows a bullishness with rising tops and bottoms and a breakout above the 535 levels into a new trading zone with almost zero upside resistance. Also note how the flag formation is confirmed with a target of 600 + being re-affirmed by us - barring unforseen circumstances. A hold on existing positions and buying on declines is recommended.

Maruti - This passenger car major has been making bullish moves on the charts and was recommended vide our earlier editions dtd Oct 23 and Dec 12, 2004. Click here to view the previous reports. The bulls have been adequately rewarded and technical analysts may note the high relative strength of 271 ( base = 100 ) and positive confirmation from oscillators indicating bullishness. A breakout from the 440 levels has propelled the stock into a strong upmove. Falling crude prices can only be a positive trigger and add to the positive outlook. We recommend a buy on the counter.

National Aluminium - This aluminium major has exhibited high relative strength ( reading 720, where 100 = base ) as the sector is undergoing a bullish phase. The scrip has indicated a breakout once a close above the 188 levels was achieved. Buying is recommended as long as the scrip manages to trade consistently above the 190 mark. This is for higher risk appetite players only.

NTPC - this scrip has been a frequent recommendation in our daily editions and has performed well as the chart indicates. This scrip is a market out-performer and is likely to accelerate the upmove once the scrip manages aclose above the 85.50 levels. This scrip has derived good support at the 13 day SMA which is a good short term floor. buying is recommended for the patient traders / investors.

BSE Sensex - the Sensex has started trading deeply into a new trading zone and has tested the 6500 mark. Being in the new zone, profit taking will be rampant and volatility will be high till players get acquainted with these levels. We expect a support at the 6390 levels and feel the Sensex should stay above this level in the coming week. Upside target is 6584 in the coming week.

Your call of action - Since the Sensex futures are not very liquid, we suggest trading the Nifty 50 instead.

Nifty 50 - this index has also broken into a new trading zone as the close is at it's lifetime highs. Support on the downside is expected to be at the 2028 levels in the coming week and on no account must this index go below the 2020 levels in the coming week. Upside target is 2084 in the coming week.

Your call of action - Buy the January futures ( quoting at Rs 5 discount to cash ) on declines to the 2050 levels and hold with a stop loss at the 2039 levels. Expect to book profits at the 2074 levels in the short / medium term in a conducive market.

CNX IT - this index is showing signs of fatigue as the double top at the 3000 levels is proving to be a formidable resistance level. Making lower tops and bottoms formation, the index is at a crucial threshold support of the 30 day SMA at the 2900 levels. Should it close below this levels, expect a faster downside. Bull positions should be avoided in the immediate term.

Your call of action - Since the CNX IT futures are not very liquid, we suggest trading the Nifty 50 instead.

Dow Jones Industrial Average - this US old economy index is showing extreme strength as it breached a 3 1/2 year levels and closed at a critical high which shows strength in then undertone. The chart shows an inverted head & shoulder formation and a flag formation which is a sign of strength. This index is likely to see the 11000 levels after the christmas break is over.

Dow Jones - Weekly chart

Your call of action - Since Indian investors are not allowed to trade in overseas markets, this is a pure academic study.

ACC I Bajaj Auto I BPCL I HDFC Bank I ICICI Bank I Mah & Mah I Maruti I Nalco I NTPC I BSE Sensex I Nifty I CNX-IT I Dow Jones I Nasdaq I FTSE I Top I Close window I Print page

Nasdaq - the Nasdaq is making similar chart patterns like the Dow Joes, however showing lower chartical strength. The 2170 levels need to be surpassed to signal strength and the 2135 levels are an immediate floor price below which the index should not fall.

Nasdaq - Weekly chart

Your call of action - Since Indian investors are not allowed to trade in overseas markets, this is a pure academic study.

ACC I Bajaj Auto I BPCL I HDFC Bank I ICICI Bank I Mah & Mah I Maruti I Nalco I NTPC I BSE Sensex I Nifty I CNX-IT I Dow Jones I Nasdaq I FTSE I Top I Close window I Print page

FTSE - this UK index is showing signs of strength as the index attempts to test the previous top amidst the pre-christmas sentiments. This index needs to trade consistently above the 4865 levels to signal bullishness and maintain an upward trajectory. The 4725 levels will be a good support in the coming week.

FTSE - Weekly chart

Your call of action - Since Indian investors are not allowed to trade in overseas markets, this is a pure academic study.

ACC I Bajaj Auto I BPCL I HDFC Bank I ICICI Bank I Mah & Mah I Maruti I Nalco I NTPC I BSE Sensex I Nifty I CNX-IT I Dow Jones I Nasdaq I FTSE I Top I Close window I Print page

Trading tips for the week

The put / call ratio is climbing and the Nifty PCR is near the record highs of 1.50 : 1 levels and the outstanding positions in the derivatives segment have shown a qualitative increase. The FII investments are continuing steadily.
There is offloading at higher levels in stock futures. That indicates a routine paring of positions as expiry draws closer.
The current week is crucial for the markets as the expiry of the December series has coincided with the natural calamity in the southern parts of the country.
The index heavy-weights are showing strength again. This in turn will boost the indices and cause a feel good factor. The only worry is that this upbeat sentiment should continue.
The impeding expiry of the December series will see offloading and higher volatility in the near term. Long positions must be initiated in small lots only.
Standby for fresh recommendations via SMS on a real - time basis.

The author is a Mumbai based investment consultant and invites feedback at Vijay@BSPLindia.com and ( 022 ) 23438482 / 23400345.

SEBI disclosure :- The author has no positions in any securities mentioned above.