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Monday, 25 February 2013

Which stocks to trade on Feb 25 DLF, Wipro, Tata Steel, L&T, SBI

Next week is a very  tricky week to trade due to the budget announcements on Wednesday and Thursday. Typically my trading style avoids days where news are there. So we may trade cautiously on Mon, Tue with no overnight positions. Wednesday and Thursday we may trade limited since the market or individual stocks could see violent price movements.

At the moment, I am not expecting a major upmove or downmove after the budget, but I expect that the markets react little bit on either side and consolidate.

On Monday and Tuesday, some of the stocks like SBI, L&T could start making small upmoves though overall trend is negative. My suggestion is to wait and watch after market opening and decide to go short or long.

Nifty View for week starting 25 Feb

Nifty is clearly negative in weekly and daily charts. In weekly charts MACD is negative and Nifty is resting at 20 MA. In daily charts, Nifty is below 20 and 50 DMA and we saw bearish crossover of 20 below 50. Trend is negative for short term as per charts.

Below is how different sectors look like after Friday’s trades.

IT sector is the strongest with both hourly and daily charts. Pharma is the next one which is strong. Infra has turned buy in hourly charts with stocks like DLF in the positive.

Weekly trades – Longs can be considered in Wipro & Infosys in IT. In Pharma, Ranbaxy may be considered for a long. In Infra, DLF is good to trade from long side.
Day trading – Mon/Tue.
Tata Steel is negative below 368 and positive above 368, watch these levels. To know why this level is important, visit my day trade on 22 Feb. Also read my analysis on Tata Steel here.
ICICI Bank will be positive above 1095-1100, however sustained downtrend below 1090 will weaken the stock tremendously.
SBI has good support at 2190, on convincing breakout below this, please short.
L&T – 1440-42 is resistance, above that the stock will be positive. Between 1430 and 1442, ideally no trade. Sell below 1430.
I am adding one more stock in my watch list for day trades. Bharti Airtel , which was covered several times by me in the recent past. Bharti can test 312-315. The short term trend is negative so be cautious on longs and book profits at 1-2 points profit. Trade in multiple lots.
Wish you good luck. Keep watching my blog/ subscribe to twitter alerts / subscribe to RSS in your readers to get real time alerts of my posts.


Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
Arvind Virmani


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