TRADING STRATEGY FOR 6TH MAY 2009
(Based on technical by O P AGARWAL)


Markets take a breather

The market opened weak yesterday in the absence of any positive trigger and flat to mixed global cues. Market participants preferred to book profits rather than building fresh positions. However, markets despite a rebound around early noon remained choppy right through out the session due to lack of interest by the investors. Further, stocks from realty, banking, capital goods, metal, sugar etc., made sharp gains during the day while stocks from IT, Oil, FMCG and auto sector suffered. The Sensex, which touched a low of 11,985 and a high of 12197 in intra-day trades, closed the day at 12,131, losing marginally over its previous close. The Nifty which made a low of 3618 and a high of 3682 in intra -day trades finally closed the session with a marginal gain of seven points at 3661. The market breadth was strong as on BSE, 1615 shares rose as compared with 933 that declined. A total of 99 shares remained unchanged. Meantime, readers are advised to trade with caution and avoid making large positions.

NIFTY FUTURE (Last close 3665.20)
The counter after opening flat yesterday moved range bound through out the session and finally ended with a marginal gain over its previous close. The counter appears positive but will gain further strength once it trades and remains above 3701.75 whereby it may move up to 3723/3746. Strong support for NF exists at 3616.25 which if breached decisively it may slip to 3598/3576.

TITAN FUTURE (Last close 796.65)
The TATA Group enterprise engaged in retail of watches, jewellery and eyewear business has a network of more than 480 stores generating a turnover of more than 3300 crore annually. The Net profit for the year stood at Rs158.96 crore as compared to Rs150.27 crore in the previous year despite slowdown in several sectors. After considering the excellent performance of the company, the directors have recently recommended a dividend of 80 per cent and a special silver jubilee additional dividend of 20 per cent making a total dividend of 100 per cent. Meantime, the stock of the company closed yesterday above its weekly resistance with marginal gain. The stock appears positive on charts and may move further to 814/827 once it trades and remains above 803.75. Strong support for the stock exists at 789.25.

INDIA BULLS REAL ESTATE FUTURE (Last close 140.85)
The company is engaged in real estate and infrastructure business having development projects spread across residential projects, commercial offices, hotels, malls, and Special Economic Zones. The company’s Board took a decision recently to raise US$600 million through a private placement to augment the capital requirement. Meantime, the stock of the company closed yesterday above its weekly resistance with high volumes gaining over 5%. The stock appears positive on charts and may move further to 146/149 once it trades and remains above 141.75. Strong support for the stock exists at 137.25.