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Thursday, 14 March 2013

Which stocks to trade today 14 March

Dear Readers
Today is a day with news flow and planning for the day in advance is a tough job. So we will basically play with levels. Risky traders are recommended to wait till market settles down after the WPI data is announced.

Tomorrows WPI data will decide RBI stance on March 19. If you remember, for few days banking sector was rallying on the rate cut hopes, however this sector has fallen significantly in the last two days. PSU Banks and Bank Nifty as a whole have turned sell in daily and hourly charts. ICICI and Axis Bank were down close to 3% today and could continue downfall if inflation data is not supportive. Anyway no buying in banking is recommended even if the data is good.

Metals continue to be strong sell in both hourly and daily charts. Auto has turned to sell in daily charts.

Nifty view

Nifty could not climb above 5920 today and the support 5880 was broken. Tomorrow 5885 will be a major resistance, followed by 5920.
Support will be 5840, followed by 5810. In case of a major fall, Nifty could go upto 5780.
Any intraday long is recommended only above 5860. Shorts could be initiated as long as index is below 5860.


Intraday Calls
I recommend no open positions close to 11 AM when the data is announced. Best would be to enter after 11:30 once the IIP data is digested. If any positions are taken at 09:30, if in profits, please book before the data is announced. Keep strict SLs.
1. ICICI Bank – In daily charts, ICICI has crossed below 15 and 20 day moving averages and stochastics has given a sell.
ICICI will face major resistance at 1095 and 1107. Reversals from these levels could be shorted. SL for shorts will be 1116.
Below 1095, ICICI is a sell with target of 1080-75. If the stock sustains below 1075, then it could go to 1060-40 levels.
2. Axis Bank – In daily charts, Axis Bank is below 20 day EMA and resting at 200 day MA. Trade similar to ICICI. Major resistances at 1355 and 1375. SL for shorts is 1382-85.
Below 1355, Axis is a sell with target of 1346, 1340. Sustain below 1340 could lead to 1330 and 1310 levels.
3. SBI – Sell below 2180, for targets of 2160-55 which is a major support. (Risky trade)
4. Maruti – Maruti is giving us daily profits on shorts for the past few days. Tomorrow however, Maruti is a sell on rise towards 1386-90 levels. with SL at 1410 levels. Target is 1380-70-60 levels.
5. L&T – Sell below 1480 for target of 1470 with SL at 1510. We have to maintain a high SL because of the volatality. Risky traders avoid.
6. BHEL – BHEL was a good trade today , some more downside is left. Support was broken to day and the stock could go up to 195. Short with SL at 199. If 195-4 range is broken with volumes, then 190 will be the target in next few days.
7. Tata Steel – Do not short as long as the stock is above 352. Sustain below 352-350 could see a target of 347. Risky to short since there is a positive news on the stock.
Safe traders, please avoid the calls marked as risky. As usual enter only after 09:35 AM.

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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