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.

Arvind Mills - this textile major was recommended as a short sell frequently in the recent past after it fell below the 119 support and has proved to be a profitable proposition for the intraday bears. The scrip continues to make lower tops and bottoms formation and is currently trading below it's 109 supports. The oscillators are in a sell mode and we recommend a short sell on the counter on advances for the high risk appetite players.

Bank of India - this PSU banking major is trading below it's short & medium term averages and exhibits weakness on the short term charts. The price graph is suggesting weakness as the scrip displays lower closing prices since the last 3 sessions. The 80 levels will be a critical short term support below which the bears are likely to have an upper hand. We recommend a short sell for the higher risk players.

Mah & Mah - this scrip has been a prolific buy in our editions and has taken a beating in the recent past on persistent profit taking. The counter remains a strong market out-performer as the relative strength is 242 ( 100 = base ) which shows potential to bounce-back from the 52 week SMA levels ( 465 ) in the coming days. We recommend a buy for the patient delivery based investors on significant declines only.

Punjab National Bank - this is another PSU banking scrip which is making lower tops and bottoms. The 366 level support stands violated on a consistent closing basis and the oscillators are in a sell mode. A consistent trade below the 350 levels will be a conclusive signal for bearish trades on the counter.

Tisco - This steel major has shown a resilience on the last trading day of the previous week and come off it's lows. We have been recommending shorts on this counter for intraday players with good results. The scrip has been trading below it's 30 day SMA and is at the threshold of a crossover above this level. The short term momentum oscillator ( stochastics ) seem to point towards a pullback rally, which will be confirmed only above the 354 / 355 levels. Buy on that confirmatory breakout.

Tata Power - this power major has been undergoing volatile trade and has closed at the threshold level of 360 which is a fortnightly congestion zone. Should a sustained trade below the 360 levels continue, we advocate initiating short sales for the adventurous short term players.

Tata Tea - This FMCG player has witnessed a downslide in the near term and is exhibiting signs of weakness on the short term charts. The 465 levels are a critical area to watch for the short term players. Should the scrip stay below this level, expect further weakness, which can be exploited by short term players for initiating short sales.

Union Bank of India - this PSU banking major has exhibited a weak chart pattern as the short term average has crossed over the medium term average in a downward direction and price graph itself makes a lower top and bottoms formation. The oscillators are in a sell mode and a sustained trade below the 99 - 100 levels will spell further weakness on this counter. We recommend a short sell on confirmed weakness on this counter.

BSE Sensex - the Sensex is showing signs of getting short term support at the 6140 levels as it manages to close at / above this level after intraday lows. A sustained closing below this level will spell further weakness on this index. A close above the 6250 levels is required to confirm the termination of the short term bearishness.

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

Nifty 50 - the Nifty has made a triple bottom in the last 7 trading sessions and managed to close above this level. The 1900 level is therefore a crucial floor for the markets in the near term. The short term momentum oscillator ( stochastics ) points towards bullishness, which may indicate a short term pullback in the offing. A closing above the 1944 levels will see the Nifty testing the 1960 - 1966 levels in the near term. Buy only on a confirmed breakout above the 1934 - 1935 levels.

Your call of action - Buy the Nifty Feb futures above the 1934 levels ( preferably if it closes above this level for atleast a day) and expect to book partial profits at the 1945 levels and complete profits at the 1960 - 1962 levels in the near term.

CNX IT - this technology index is gradually consolidating from the 2640 levels and is likely to face resistance at the 2750 levels, which it must surpass and close high to signal bullishness. The oscillators are pointing towards a weakness in the undertone and a fall to the 2600 is not ruled out in the coming week, should the markets fall further.

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

Dow Jones Industrial Average - the Dow Jones average is showing a lower close for the third week running and is at near 4 month lows. The crucial test will be the 10,280 - 10,300 levels. Should these be violated, there could be further falls to the 10,040 levels. On the upside, watch the 10,650 levels for resistance.

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

Arvind Mills I Bank of India I Mah & Mah I Punj Nat Bank I Tisco I Tata Power I Tata Tea I Union Bank 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 Jones and is at near 4 month lows too. The 2000 levels are likely to be tested and the 2100 levels need to be cleared convincingly to signal a reversal of the weakness.

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

Arvind Mills I Bank of India I Mah & Mah I Punj Nat Bank I Tisco I Tata Power I Tata Tea I Union Bank 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 making better patterns as compared to the US markets and is likely to derive support at the 4750 levels. On the upsides, we expect resistance at the 4865 levels which need to be cleared convincingy to signal a fresh upmove.

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

Arvind Mills I Bank of India I Mah & Mah I Punj Nat Bank I Tisco I Tata Power I Tata Tea I Union Bank 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 easing and is currently at the 0.22 : 1 levels and the outstanding positions in the derivatives segment have shown a minor increase in the options segment. The FII investments are continuing to remain negative.
There is offloading at higher levels in stock futures. That indicates a cautious approach as long positions in individual stocks is being hedged by Nifty shorts.
The current week is crucial for the markets as the expiry of the January series will be a trend determinator for the near term.
Trades must be executed in small volumes due to the higher volatility expected. Trade fewer counters and conserve cash for future opportunities.
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.