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Thursday 21 February 2013

Which stocks to trade –21 Feb, Short SBI & Tata Steel.

Nifty is mildly bullish. In hourly charts, Nifty is still in buy mode, but daily charts is in Sell mode. US Markets have ended weak and Nifty could be weak as well for Thursday.
See the sector analysis below. Only IT seems to be very strong. In case you wish to go long for Intraday, select Infosys and HCL Tech.
Banking , particularly PSU Banks are weak. SBI and ICICI Bank appear to be weak.
ICICI Bank is showing a support and bounce back trend. But if the immediate support of 100 DMA in daily charts is broken, then go short blindly.
SBI is likely to move down further. RSI in daily charts of SBI is showing a resistance at 30 levels. (Why RSI can indicate a resistance ? ). Fast stochastics looks like pointing downwards.
Please read my previous posts on SBI here. SBI Continues its downward journey
Tata Steel is again weak. One of my recent favorite stocks for short sell, I covered several articles here about its downfall.
Tata Steel continues its downmove
On 20 Feb, Tata Steel tried to reach 15 DMA, but fell down on higher volumes, downmove could continue 374-372-368. RSI is showing resistance at 40 levels in daily charts.
Beware of a bounce from 370-368 levels if you are short. If 368 is broken convincingly, then 360-350 is the short term target.



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