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.

Ashok Leyland - this commercial vehicles manufacturer was recommended earlier vide our editions dtd. June 04 & 11, and July 02, 2005. Click here to view the previous recommendations. The stock has been slow to rise to our expectations, but shows promise on the weekly chart below. The breakout above the downward sloping channel has been confirmed on a weekly closing basis and that too with a sharp spurt in volumes. The oscillators are supporting the upmove and we feel a consistent closing above the 25.50 levels will prove to be a bullish indicator for the stock. We recommend a hold on existing long positions and a buy on advances.

Bharti Tele - this telecom major has exhibited a breakout after achieving trade above the 250 levels. The 250 levels are a critical threshold above which the scrip must trade consistently to rally further. The breakout from this multiple top has been achieved with higher volumes and confirmation by the oscillators. The outlook is positive and we recommend a trading buy for higher risk traders.

BPCL - This scrip was recommended earlier vide our editions dtd Mar 12, April 02 & 09 and June 18 & 25, 2005. Click here to view the previous recommendations. This scrip is likely to remain under pressure on account of higher crude prices in the international markets. It maybe noted that the scrip is trading below it's 200 day SMA and is likely to confirm a head & shoulders pattern once it trades below the 350 mark. The oscillators are pointing towards a weak undertone and the volumes are showing a sense of apathy. We recommend a short sale bias on the counter.

Canara Bank - this scrip is moving in a strong rising tops and bottoms formation and and exhibits a high relative strength of 221 vis-a-vis the Nifty ( where 100 = base ). The oscillators are in agreement with the upmove and the directional movement oscillators are pointing towards a build-up on the bullish momentum. The volumes are showing signs of falling which remains a concern. Technical traders will note the possibility of an inverted head and shoulders formation which gets confirmed above the 244 levels. We recommend a trading buy on the counter for now. Long term bulls may above the 245 levels.

Cipla - we recommended this scrip vide our earlier edition dtd July 02, 2005. Click here to view the previous recommendations. The scrip is showing promise of rallying past the inverted multiple tops congestion formation and the same is confirmed after a conclusive and consistent close above the 325 levels. The oscillators are in confirmation with the uptrend and the probability of the trend building up momentum on the upsides is high. We remain bullish on this counter and recommend a hold on existing positions and a buy on advances.

Colgate - This scrip was recommended vide our earlier edition dtd June 05, 2005. Click here to view the previous recommendations. This MNC FMCG major is showing signs of correcting after a good run upwards. The sectoral chart itself is showing a good strength vis-a-vis the benchmark indices and we expect the upmove to sustain itself in the near / medium term. The oscillators are showing signs of strength and the traded volumes are rising since a few months. The directional index is showing signs of picking up of upward momentum and we recommend a buy on declines.

Dabur Ind - this scrip was recommended vide earlier newsletters dtd. May 28, June 05 & 11 and July 02, 2005. Click here to view the previous recommendations. This scrip is in the second leg of the upmove and is gaining upward momentum as the chart below indicates. The traded volumes have risen in the last fortnight and the scrip is making a higher tops and bottoms formation along the 13 week SMA. The oscillators are supporting the upmove and the the high relative strength of 243 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring. We feel a price of 145 - 150 is likely in the short / medium term. Any increase in volatility in the markets will see defensive buying in the pharma sector from cautious players.

GSK Pharma - this scrip has been recommended earlier vide our edition dtd. Jan 16 & 30, June 26, and July 02, 2005. Click here to view the previous recommendations. This scrip has retraced after successfully meeting our targeted levels. The traded volumes have risen which indicates an increased investor / trader interest on the counter. A breakout above the 800 levels ( which was a multiple top resistance ) has been a positive trigger for the counter. The high relative strength of 176 vis-a-vis the Nifty ( where 100 = base ) is also a bullish factor. The oscillators are confirming the uptrend and we feel declines are opportunities for the bulls to enter long on this counter.

HPCL - this petroleum refining and marketing PSU major has been recommended vide our earlier editions dtd Jan 16, Mar 13 & 26, April 03 & 10, June 25 and July 02, 2005. Click here to view the previous recommendations. This scrip should be seen in conjunction with the international / MCX prices crude prices. The higher the crude prices, the increased the downward pressure on this scrip. Technical traders will see a head and shoulder pattern emerging with a neckline at the 300 mark. The scrip is drifting lower and the volumes are sinking. Also note the falling RSC of 68 vis-a-vis the Nifty ( where 100 = base ). All these factors point towards a weak outlook on the counter. We maintain a bearish outlook on the scrip, especially below the 300 mark.

ITC - this scrip has been the most frequent and also the most profitable recommendation from us in recent times. Earlier recommendations were dtd Feb 06 & 27, Mar 05, 13 & 27, April 03, 10, 24 & 30, May 15, 22 & 29, June 05, 11, 18 & 26, and July 02, 2005. Click here to view the previous recommendations. This scrip remains a hot favourite with us as the stock continues it's upward march. The target of 1789 remains and we feel the positions should be reduced significantly at these levels. A small portion of long positions maybe held in anticipation of higher valuations on an ex bonus / ex split basis. The oscillators continue to rise with good volumes and the relative strength is high at the 349 mark vis-a-vis the Nifty ( where 100 = base ). Maintain a bullish bias.

Jet Airways - This scrip was recommended vide our earlier edition dtd June 25, 2005. Click here to view the previous recommendations. The scrip is moving within a bearish channel and is likely to be at the receiving end of the higher ATF ( aviation turbine fuel ) prices and short term uncertainties in the international travel business after the London blasts. We expect resistance at the 1320 levels and as long as the scrip stays below the 1270 mark, expect the possibility of the 1220 levels. We recommend a short sale bias on the counter.

ONGC - this scrip was recommended vide our earlier editions dtd June 25 and July 02, 2005. Click here to view the previous recommendations. This scrip has taken the news of the possible foray into refining and subsidy burden sharing on the chin and the price has gone into a tailspin. We feel a lower level retracement support exists at the 894 mark and the stock can see a short term reversal from there. A trading buy is recommended at those levels. A bounce-back to the erstwhile threshold of 940 cannot be ruled out.

SBI - this PSU banking major is in a major uptrend as the chart pattern indicates. Earlier recommendations dtd Jan 07, Mar 12, April 02, May 21, June 05 & 11 and July 02, 2005. Click here to view the previous recommendations. The scrip is poised for fresh upmoves and is likely to test the previous significant tops at the 750 levels as long as the 700 levels are not violated on the downsides. The oscillators are supporting the upmove and the projected price of 900 + levels in 18 month time frame is re-affirmed.

BSE Sensex - This BSE benchmark is moving in a bullish groove and takes support at the 13 day SMA which is poised at the 7175 levels currently. We expect the 7122 levels to be the short term support and feel the index is unlikely to fall below the 6980 levels in the coming week. Upsides are likely to see resistance at the 7354 levels.

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

Nifty 50 - This index is moving within the predictable upward channel of the larger "V" shaped formation. It should be noted that the 2239 levels are the critical threshold level above which the Nifty must trade to signal fresh bullishness. The immediate short term support will be the 2170 level which corresponds with the channel bottom and the also the previous low. There maybe further downside till the 2151 levels if the 2170 breaks. The outlook remains cautiously optimistic.

Your call of action - Sell the 2000 July puts at Rs 6 and the 2050 July puts at Rs 9 premium or higher in small lots.

CNX IT - this technology index is attempting to maintain levels above the 2980 levels which corresponds with the 13 day SMA and the medium term trend-line. This index is likely to be volatile in the coming days due to the results expected from the technology frontline counters. A sustained trade below the 2970 will see weakness on the index. A crossover above the 3030 levels will be positive for the index.

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 index is making an attempt to rally after a week of consolidation / correction. Staying above the 10425 levels is critical for the index to remain bullish. Heavier resistance is likely at the 10640 levels. On the lower side, the 10200 levels are a support area.

Your call of action - this is a pure academic study.

Ashok Leyland I Bharti Tele I BPCL I Canara Bank I Cipla I Colgate I Dabur Ind I GSK Pharma I HPCL I ITC I Jet Airways I ONGC I SBI I BSE Sensex I Nifty I CNX-IT I Dow Jones I Nasdaq I FTSE I Top I Close window I Print page

Nasdaq - This index is making a bullish pattern on the daily chart as the 2100 levels are surpassed on a closing basis. The 2100 levels are a multiple top since February and if the index manages to close above this threshold on a sustained basis, higher levels of 2154 are likely. On the lower side, expect support at the 2064 levels.

Your call of action - this is a pure academic study.

FTSE - this index is showing higher relative strength as compared to the US benchmarks. The 5240 levels are likely to be the resistance area to watch out for and the 5130 levels are the support in the immediate future. A higher tops and bottoms formation is in progress and it is important that the 5070 levels are not violated in the the coming fortnight. Upsides will see resistance at the 5365 levels.

Your call of action - this is a pure academic study.

Trading tips for the week

The put / call ratio is climbing and is currently at the 0.30 : 1 levels and the outstanding positions in the derivatives segment have shown a qualitative increase. The FII investments are continuing steadily.
The current week is crucial for the markets as there are newsflow events like Infosys results, trend formation in the markets and run up to the credit policy announcement.
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.
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.