Buy One Nifty Nov Fut @ 2550-2560; Buy One Nov 2500 PE
@ 200-210; Sell one Nov 3000 CE @ 120-130; BEP: 2680; Tgt:
3000; TF: 8-10 days (*initiate once Nifty Nov 2500 PE strike
introduced)
Buy One Tata Steel Nov 200 CA @ 20-24; Buy One Tata Steel
Nov 200 PA @ 30-34; UBEP: 250; LBEP: 150; stop loss: 30 (total
premium); TF: 10-12 days
Buy one Reliance Nov Fut @ 1020-1030; buy one lot Reliance
Nov 1000 PA @ 100-110; BEP: 1130; timeframe: 8-10 days.
JGS Investments is a home of expert stockmarket analysts, and premier source for technical analysts research and information on Indian Stock Markets.Just join us at Yahoo Messenger sheth_jg@yahoo.com OR Email at sheth_jg@yahoo.com
Monday, October 27, 2008
Sell Bank of India on rally to Rs.244/253 with a stop of Rs.262 and hold for a week
The pain which we are witnessing would be remembered by generations. It would
not be easy to forget the fall all our lives. I, in my Eight+ years of experience in Equity
Markets have seen many falls and rises be it Dot Com bust or Ketan Parikh, what not? But
this is the biggest blow ever witnessed. The only positive one can imagine out of the fall is
that it has polished people to such a extent that they can be better people in the market.
- Most of the selling came on Friday after the announcement by RBI that there are no
policy decisions taken nor is there any change on the interest rates front. RBI should have
cut lending rates atleast by 0.25% to boost the confidence in the market, but it ended up
saying inflation remains a concern. Inflation is not the main concern now its the confidence
which requires to be brought back into the system. This is one side of the story the other
side is most of the selling came again by the FII's hence even if market would have
increased on a rate cut it is FII's who would have got better rates for offloading their shares.
Hence the rates are lower now and hence we would get better rates if interest rates come
down now.
- FII's pumped in around $15 Bn in 2007 and this year till date have sold around $12
Bn hence assuming they sell all there purchases of last year, the levels which prop up looks
horrifying. Technicals show clear target for Dow at 7550 – 7260 and for Nifty at 2030 –
1840 which means we should land and take support at 7000 on Sensex and I sincerely
feels that that should be the targets in worst case scenario.
- Many people call and send emails daily and the grief in investors voices is clearly
visible though not told out by them. Investors felt there's no end to the bull market in Jan
and today they feel there's no end to the bear markets. Markets turn when people loose hope
and its time people start committing money for atleast 3 years time horizon.
We recommend a sell in Punjab National Bank from a short-term trading perspective. It is evident from the charts of Punjab National Bank that it was on a broad sideways consolidation in the range between Rs 440 and Rs 530 between late July and late October. The stock failed to surpass the upper boundary (Rs 530) of the sideways consolidation during mid-October and started to decline.
Subsequently, the stock penetrated the 21- and 50-day moving averages by tumbling over 6 per cent on October 22. Moreover on October 24, the stock conclusively broke out of the sideways consolidation by slipping 11 per cent, along with the broad market sell-off.
The daily relative strength index (RSI) has entered in to the bearish zone and the weekly RSI is on the verge of entering this zone. Furthermore, the moving average convergence and divergence has entered the negative territory, indicating a sell. Our short-term forecast for the stock is negative. We expect the stock’s decline to prolong until it hits our price target of Rs 375 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 440.
not be easy to forget the fall all our lives. I, in my Eight+ years of experience in Equity
Markets have seen many falls and rises be it Dot Com bust or Ketan Parikh, what not? But
this is the biggest blow ever witnessed. The only positive one can imagine out of the fall is
that it has polished people to such a extent that they can be better people in the market.
- Most of the selling came on Friday after the announcement by RBI that there are no
policy decisions taken nor is there any change on the interest rates front. RBI should have
cut lending rates atleast by 0.25% to boost the confidence in the market, but it ended up
saying inflation remains a concern. Inflation is not the main concern now its the confidence
which requires to be brought back into the system. This is one side of the story the other
side is most of the selling came again by the FII's hence even if market would have
increased on a rate cut it is FII's who would have got better rates for offloading their shares.
Hence the rates are lower now and hence we would get better rates if interest rates come
down now.
- FII's pumped in around $15 Bn in 2007 and this year till date have sold around $12
Bn hence assuming they sell all there purchases of last year, the levels which prop up looks
horrifying. Technicals show clear target for Dow at 7550 – 7260 and for Nifty at 2030 –
1840 which means we should land and take support at 7000 on Sensex and I sincerely
feels that that should be the targets in worst case scenario.
- Many people call and send emails daily and the grief in investors voices is clearly
visible though not told out by them. Investors felt there's no end to the bull market in Jan
and today they feel there's no end to the bear markets. Markets turn when people loose hope
and its time people start committing money for atleast 3 years time horizon.
We recommend a sell in Punjab National Bank from a short-term trading perspective. It is evident from the charts of Punjab National Bank that it was on a broad sideways consolidation in the range between Rs 440 and Rs 530 between late July and late October. The stock failed to surpass the upper boundary (Rs 530) of the sideways consolidation during mid-October and started to decline.
Subsequently, the stock penetrated the 21- and 50-day moving averages by tumbling over 6 per cent on October 22. Moreover on October 24, the stock conclusively broke out of the sideways consolidation by slipping 11 per cent, along with the broad market sell-off.
The daily relative strength index (RSI) has entered in to the bearish zone and the weekly RSI is on the verge of entering this zone. Furthermore, the moving average convergence and divergence has entered the negative territory, indicating a sell. Our short-term forecast for the stock is negative. We expect the stock’s decline to prolong until it hits our price target of Rs 375 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 440.
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