Which stocks to trade today 12 Mar

Readers

On 11 Mar, Nifty did not cross my resistance level of 5975 identified in the weekly outlook. In fact todays market movement shows a weakness overall. So for me, the longs would be only above the resistance level of 6000 sustained.

Today is a news day with IIP data announcement at 11:00 AM. My suggestion is not to keep any positions between 10:30 and 11:30 if possible to avoid fluctuations.

Technical Analysis will not be much of use on high news days, so basically, I would trade based on levels.

Sector view: IT and Banking sectors are showing weakness. So I will not enter long trades in ICICI, SBI as in the past few days. Instead I will look for possible shorts in these stocks. Maruti has given a confirmation of Dark Cloud Cover Pattern discussed here. ONGC and Cipla are not moving as per expectations, so I am dropping from my watchlist.

1. ICICI Bank – Sell below 1127 for target of 1118. Below 1118, stock could slide by another 10-20 points. SL for shorts is 1140.

2. Maruti – Sell below 1412 with SL of 1427. Below 1405, the stock will further slide.

3. L&T – Buy above 1525 for target of 1530- 1550. SL is 1492. Please do not buy into the spike of IIP news. Do not sell L&T below the SL, since L&T recovers typically  even if IIP news is bad. Another condition for long trade in L&T is Nifty crossing 6000.

4. Infosys – Sell below 2930 with SL at 2945. Target is 2920.

5. SBI- Sell below 2190 with SL at 2206.

Please take positions only after 09:35 AM. Wish you good luck. Being news day, take only one open position at a time even if levels are met.

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.

Posted in: Intraday