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Thursday, 7 March 2013

Which stocks to trade–07 Mar ICICI, SBI, Reliance, Cipla, BHEL

On 07Feb, markets could pause a bit after the run up for two days. Below levels will not work if the overall market direction is indecisive. In such a situation, look at charts and trade. Buy only if trend is up after 15-20 min of opening. Sell if trend is down.

All individual stock movements should be correlated with Nifty movement. Buy the stocks if Nifty is moving up and sell (only 1 sell recommendation  on BHEL) if Nifty is moving down.

1. ICICI – Bullish MACD crossover in daily charts. RSI and Stochastics have given buy signal in daily charts. Stock is likely to move up further. Buy above 1110 only. For longs SL could be maintained at 1095.

2. SBI – The stock made a good consolidation today and moved with high volumes above 2160-70 levels. Buy above 2175 with SL at 2160.

3. Reliance – Short term target of 860 looks still feasible. Buy above 840 with SL at 833.

4. Cipla – Cipla is bouncing from daily pivot levels for the past 2 consecutive trading days. I still believe there is strength in this stock. MACD made a positive crossover in daily charts and RSI is attempting to rise above 50 in daily charts. For tomorrow’s intraday trade, buy above 384 and sell if the stock sustains below 381 convincingly. 381 will be the SL for long trades as well.

5. BHEL – I recommend a sell in BHEL if Nifty looks tired and is trending down. Sell below 199 with SL above 203. Aggressive SL will be 205. I am giving this sell recommendation since the momentum is very less for BHEL in daily charts and 205 is a strong resistance. 199 is today’s low. Selling below that level will be a good strategy if overall market is also in sell mode. 

Charts are your real time friends which will help you to trade. Carefully observe the charts to enter / exit your trades. Buy on positive signals and sell when the charts show negative signals. Combine this with the levels above, you will definitely make profits.

Some basic tips on charts below.

When to Buy ?

In 5 min chart – MACD bullish crossover while the candles are above 5 min, 20 min EMAs, RSI pointing up, Stochastics in buy mode.

When to Sell ?

In 5 min chart – MACD bearish crossover while the candles are below 5 min, 20 min EMAs, RSI pointing down, Stochastics in sell mode.

For more details, visit my real trades posted before to understand how these signals look like in charts.

Wish you good luck for the trading tomorrow.

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