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 scrip has been in the news for a variety of reasons and so far all the indicators are positive. The chart pattern is suggestive of a rally and the higher tops and bottoms formation is confidence inspiring. The important point to be noted here is that the 142 levels are an important crossover level above which the scrip must close conclusively to signal the next round of bullishness. A consistent trade above 142 levels will see the 152 - 154 levels in the short term. We recommend a buy on a confirmed breakout.

Ashok Leyland - this scrip was recommended in the previous weeks and has signalled a breakout above a 20 month old channel. The traded volumes have been exceptionally high and signal a high trader interest. As long as the scrip maintains levels above the 25 levels and volumes are high, expect the bullish optimism to continue. The oscillators are suggestive of a continued uptrend and we recommend a buy.

Ballarpur Inds - this scrip was recommended on multiple occasions and has performed along our expected lines. The higher tops and bottoms formation has been confidence inspiring and the oscillators are suggestive of a continued upmove. As long as the scrip remains above the 110 mark, expect the outlook to remain positive. We recommend a buy on declines.

Dabur Ind - this scrip was recommended in the previous weeks and has appreciated fairly in the period. The upsides are likely to see 160 levels in the medium term in a conducive market scenario. The oscillators are pointing towards a bullish scenario and the high relative strength of 256 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring. Support exists at the 115 levels and that maybe utilised as a stop loss level. Buying is recommended for the patient and disciplined trader.

Federal Bank - this banking scrip is attempting a breakout above it's congestion levels of 178 which is a multiple top for the price graph. The scrip enjoys a higher relative strength of 119 vis-a-vis the Nifty ( where 100 = base ) and the oscillators are pointing towards a sideways movement with an upwards bias. A conclusive close above the 180 levels with higher volumes will be a confirmed buy signal.

Guj Amb Cements - this cement major is in a major uptrend as the chart pattern indicates. The higher tops and bottoms formation is indicative of an uptrend and the previous significant top of the 469 will be the first hurdle. Above this level, expect an accelerated upmove as the scrip will be in lifetime highs. The high relative strength of 128 vis-a-vis the Nifty ( where 100 = base ) is indicative of strength. We recommend a buy for the long term investors.

ITC - this scrip has been often recommended since budget and has been in a major uptrend since the last 14 months. The oscillators are pointing towards a continued uptrend and the high relative strength of 278 imbibe confidence. The 1610 levels are likely to be the resistance level in the near term and support will be strong at the 1485 levels. We re-affirm our target of 1660 in the near term and 1785 in the long term. Buying is recommended for the patient investor / traders.

Reliance Inds - this scrip is firmly trading above the bearish channel after it traded above the 547 levels. The outlook is likely to remain positive as long as the scrip maintains levels above the 554 mark. The immediate target is the 574 and then the 588 mark. The oscillators are pointing towards a firm outlook, but being a news driven counter, exposure should be limited. This is a high risk speculative trade.

SBI - this PSU banking major was recommended last week and has appreciated to the desired levels. The stock is making higher tops and bottoms formations and enjoys a high relative strength of 126 vis-a-vis the Nifty ( where 100 = base ). The scrip currently trades below the psychological threshold of the 700 mark which will be a barrier in the near term. A consistent close above the 700 mark will see 740 - 745 in the near term. We recommend a buy on the counter.

Telco - this automobile major was on our short selling watch-list since over a quarter and has been under-performing the markets as the graphic shows. The movement was in a bullish short term channel and the oscillators were at a minor divergence to the price graph. The larger trend of the counter appears weak as the recent fall from the 525 levels has been sharp. A brief period of consolidation in the bullish channel can be termed as a flag formation which will be confirmed if the stock stays below the 425 levels consistently. Being a measuring move, it is possible to forecast a target objective of 392 in case the scrip remains bearish. We recommend a short sale on bearish confirmation.

Tisco - this scrip was recommended as a short sale candidate and has performed upto our expectations. The scrip currently trades below it's 200 day SMA and that is a negative indicator. The oscillators are pointing towards a weak outlook in the coming week and minor upmoves on short covering maybe expected, but the medium term outlook remains negative. We recommend holding the existing shorts and adding up in small lots at higher levels.

BSE Sensex - this index has been rallying for the last 7 weeks and has seen a V shaped recovery like the Nifty below. The psychological barrier of 6900 will act as an effective resistance on the upsides and needs to be surpassed convincingly to signal a conclusive buy. Till then, expect support at the 6714 levels in the short term.

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

Nifty 50 - this index was advocated by us as exhibiting a negative divergence as the RoC was headed lower whereas the price graph was appreciating. The 2122 levels will be an effective resistance which the Nifty must close above if the upmove is to continue. On the lower side, expect support at the 2063 levels to be a formidable one in the coming days.

Your call of action - Sell the June 1950 puts at a suggested premium of Rs 7.50 in small lots.

CNX IT - this technology index is showing signs of strength as the last 3 weeks have seen a good run upwards. The 3000 mark is acting as an effective barrier which this index must surpass and consistently close above, if the bullishness is to continue. The 2800 levels are likely to be a support in the near 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 NYSE index is showing signs of consolidation after breaking out of the bearish channel formation. Currently trading above it's 200 day SMA, the index is likely to encounter resistance at the 10600 mark. Support at lower levels will be seen at the 10414 levels.

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

Arvind Mills I Ashok Leyland I Ballarpur I Dabur Ind I Federal Bank I Guj Amb Cements I ITC I Reliance Inds I SBI I Telco I Tisco 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 technology laden index is showing signs of fatigue at higher levels as the 2100 levels are acting as a strong resistance for this benchmark. The oscillators are pointing towards a weak undertone and any sustained trade below the 2050 levels will be a sign of bearishness. The immediate support will be the 2020 levels.

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

FTSE - this index has shown higher relative strength as the UK benchmark approaches it's previous top at the 5077 levels. The oscillators are pointing towards an optimistic outlook and the further upmoves cannot be ruled out. Support in the near term will be seen at the 4964 levels.

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

Trading tips for the week

The put / call ratio is steady and is currently at the 0.33 : 1 levels and the outstanding positions in the derivatives segment have shown a qualitative improvement. The FII investments are continuing steadily.
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.