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Monday 4 March 2013

Which stocks to trade– 01 Mar

28 Feb was an eventful day with Nifty falling by more than 100 points and Bank Nifty more than 400 points. Whenever there is a news based selling, markets typically take 2-3 days to settle. We will know the market directions only by then clearly.

However I expect a small bounce back tomorrow. If stocks cross critical levels, short covering could trigger a move. So at the moment I am identifying buying opportunities only. If any of the stocks cross today’s low, blindly go short, since crucial levels are broken for Tata Steel, L&T, ICICI, SBI etc.
All sectors, except IT are strong sell in daily mode. So I believe IT stocks will bounce back if market recovers. Banks are also oversold and candidates for bounce back.

I have identified the below stocks for tomorrow. Please follow levels, enter into your positions after 15-20 minutes of market opening.

1. Tata Steel  - Likely to bounce back to the levels of 346-7 and then to 354. If 347 is convincingly crossed and overall markets are moving up, Tata Steel could go up further. However there will be opportunity to sell on rise at resistance and also sell below the low of 28 Feb.

RSI in 5 min charts is showing a positive divergence, though not very strong, this could help Tata Steel to bounce back.

2. DLF – If DLF moves up and stays above 280, then could give few points. I am little favorable of going long in DLF due to the resilience it showed in today’s fall.

3. ICICI – ICICI if opens positive could go up to 1055-56 levels. If this is crossed, the stock could move to 1060-70 levels.

4. Infosys – Infosys will be positive above 2910 levels and if 2935 is crossed, it will rally.

Only for risky traders – Bharti Airtel can be considered for a long.
Please observe the above levels. As mentioned in the beginning, if downfall continues (unlikely), then go short on Tata Steel and ICICI below the lows of today (DLF and Infy is not a short for tomorrow). Wish you profitable trading.


What should be the strategy for SBI? I bought 750 futures today @ 2117. Your views on the cash share would be indicative of the futures.

SBI 29 Feb - Will be positive only above 2100 in cash. Stock will be negative below 2065


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