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Wednesday, 6 March 2013

Which stocks to trade 06 Mar–Tata Steel, ICICI, L&T, Reliance

Readers
A good rally on markets today based on the optimism from around the world on economic recovery measures and hopes of favorable outcome from RBI monetary policy later this month. Banks primarily rallied due to this.
 
Global markets are positive and at the timing of writing this Dow is rallying by more than 125 points.
 
As I wrote yesterday in yesterday’s pre-market call, ICICI and SBI rose along with banking sector as a whole. IT is still strong, TCS, HCL Technologies all could go up, Infosys is showing some weakness. In Pharma space, Cipla could further move up.

Tata Steel and Reliance rebounded from the lows as expected and could begin a new uptrend which will be confirmed based on tomorrow’s market.
Read my posts indicating up move of Tata Steel and Reliance
 
For tomorrow’s trade, I recommend the following.
1. Tata Steel – Buy above 346 for a potential target of 349 followed by 352-3
2. L&T – Buy only above 1400 for 1410 followed by 1425.
3. ICICI Bank – Buy above 1100 for a target of 1110 - 1120
4. Cipla – Buy above 385 for a target of 388 followed by 392-5
5. Reliance – Achieved my target of 830 today, the stock will gradually move to 860 in coming sessions. For tomorrow buy above 836 for target of 842- higher.
Enter only after 15-20 minutes of market opening to avoid getting trapped on gap up. Below the levels mentioned, the stocks may be considered for short selling if markets start moving down. Please look at charts and simple indications like MACD bearish cross, falling RSI, MA bearish crossover etc to identify opportunities to sell.
Refer my old posts to get such examples.
 
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