Gati - Rising Star

July-27-2009 – Gati is moving silently

Recently Gati has been showing signs of improvement. It has long term support at 40, so the down side risk is limited. Buying pressure is slowly building up along with rising momentum. It is a good idea to buy Gati now with a strict Stop loss at 45. Overall market is at a major turning point, so the likelyhood of surprises is high. Take calculative risk in this environment

NIFTY – Rocking Positive Movement

July-26-2009 – NIFTY is moving fast and furiously

To receive free email updates subscribe http://india-stock-market-tips.blogspot.com/

Weekly chart of NIFTY is nothing but a positively charged force. We see the correction has ended quickly from downward red channel. Momentum indicator has turned bullish last week. Nevertheless the investors are buying furiously. We are back to the Sep 2008 levels.

If bulls control the market then we will soon hit 5260 that is 700 points rally. Bullish tone of the market is likely to continue unless we really close below 4000 consistently. 4000 has proven to be a solid support going forward.



Jaiprakash Associates – Double Bottom Buy

July-26-2009 – Buy Jaiprakash Associates above 245 keep stop loss at 210

Double bottom is a unique pattern to shake out the weak players of the stock holders. Jaiprakash has recently exhibited the similar pattern completing its W shaped base. Base is a range of a stock price movement. Jaiprakash moved in narrow range of 240 to 180 for 8 weeks.

A successful close above 245 will start a new uptrend in this script. If you are taking position in this stock keep a strict stop loss at 210 that is its 21 day moving average.

Investment Strategy Tip

Always divide your capital into 10 equal parts. Never invest more than 10 percent of your capital in any single investment.

Market Makers blessing

You will not take stop loss when the market proves you’re wrong. Market makers want you to hold on to the losing position because that is where their profit will come from.

Wishing you successful investing

Anil

This advice is only for information purposes. Please contact your financial advisor before taking position.

DLF – Ready to breakout

July-23-2009 – Buy DLF with stop loss at 350 by Anil

DLF is forming ascending triangle pattern with reduction in selling pressure. It recently made a retrace to its higher low. Volume is very high on this stock that is a good sign. Keep raising your stop loss as the stock moves higher.

HEG – Above its resistance line

July-22-2009 – Buy HEG with stop loss at 200 by Varsha

HEG has completed 5 month cup shaped base. Recently it is hovering around its resistance line of 200. Continued buying around 200 builds optimism that it could march higher. You must watch 200 as a support line. It would be a good idea to build a small position which you could add later as it gives further confirmations.

CEAT – Buying Continues

July-21-2009 – Buy CEAT with stop loss at 106 by Varsha

CEAT continues to take support at lower dotted blue line. It recently moved higher above its upper dotted blue resistance line. Now CEAT is moving higher with increased buying pressure.

DCHL – Getting ready to move higher

July-20-2009 – Buy DCHL with stop loss at 75 by Anil

DCHL is consistently rising since March. Red arrow depicts the support and now a resistance line for DCHL. A close above this line would put DCHL into an attractive entry setup. DCHL above 84 with a strict stop loss at 75, its previous low.

Observe volume is higher when it moves higher and correction is happening on lower volume.

NIFTY Searching for Directions

NIFTY Weekly Chart is struggling for new direction. The important indicators are giving confusing conclusions. The buying pressure has started to come off its high as you can see at the top of this chart. Momentum indicator is exhibiting positive energy at the bottom of this chart.

A close above 4500 on continuing basis would indicate a march towards 6500. Observe the red dotted line connecting May 2008 high to May 2009 high.

Close below the blue dotted line could bring some pain. Certainly there is a very strong support at 4000.

Best action for now would be to be on sideline and wait for confirmation on either side. With lack of buying pressure it appears that some selling could occur until next support is found.