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Wednesday 20 March 2013

Nifty Outlook and Stocks to trade on 20 March

Dear Readers

Yesterday Nifty crossed well below the support level of 5800 and 5780 which we thought would act as a low in the interim. RBI rate cut was as expected and already factored in the market movement in the past few days. Overall RBI’s cautious stance and the news on political uncertainty in the country led to a sell of with Nifty closing down close to 90 points.

Review of yesterday’s calls

Please read yesterday’s calls here

Nifty outlook and stocks to trade on 19 March

I could not post yesterdays trades separately due to time constraint. Post RBI announcement was made, the only stock which I could trade from my watch list was Tata Motors. Below 285, Tata Motors hit the target of 280 and made another low close to 279.

Nifty view for 20 March

As I have been writing here, crossing below 5800 is not a good sign for Nifty and the overall bearish trend is now confirmed for the short term. Going forward, 5800 will act as a tough resistance.

Support levels for today are 5725 followed by 5700. Crossing below 5700 any day will take the index to 5670-80 levels.

For today, market will be positive above 5780. Below this levels, no longs are recommended.

Stocks to trade on 20 March

1. ICICI Bank – closed below a critical support level yesterday. Recovery up to 1040 levels is possible which will act as a resistance. Today selling positions may be taken below 1020 with SL at 1042. Targets are 1010 and 1000. Below 1000, the stock could slip to 990.

2. L&T – Sell below 1460 for a target of 1450. SL is 1480.

3. BHEL – This stock ever since it crossed the support at 199 levels, has turned extremely bearish. Sell below 185 for a target of 182 and 179. SL is at 189.50.

4. Tata Motors – Sell below 278, for a target of 276 and 272. SL for shorts is 284.

5. Bajaj Auto – Sell below 1805 for a target of 1790 with SL at 1820 levels.

Please do not trade blindly on these levels. A buy position should be supported by charts giving positive signals. A sell position should be supported by charts giving negative signals. Please see real trades inearlier posts to understand how an intraday long or short is created.

Real Trades Update
Trading Videos

Any significant news which affects individual stocks or  overall market direction will invalidate the technical analysis behind the above views. In such a situation use real time charts to trade.

All the views and contents mentioned in this blog are the personal observations of the author and is in no way a recommendation for the readers to enter into trades of stocks/futures. The author do not accept any liability/loss resulting from the use of any content from this blog. Any act of trading performed by readers should be at their own discretion and neither the author or the sources mentioned in the blog will be responsible for the outcome.

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


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