Neyvelli Lignite - consolidation ending!

The Nifty went past the 61.80% retracement level as it shot up beyond 4950. While the price movements in intraday have been quite profitable, the daily charts still remain in sell mode. Advanced indicators still suggest that the rally is 'corrective' in nature.

After recent annoucements, PSUs have been in limelight and one of my favorites is Neyvelli Lignite (yes fundamentally too) .



The scrip seems to be in a consolidation mode between 120 and 145 and I expect a break out above Rs 145 should lead us towards targets near Rs 180 and beyond. Also Rs 110-120 price range is a good support area for the stock where investors may want to accumulate further (obviosuly after checking the charts).

Keep an eye on the volumes and volume based indicators too. . .

Happy trading !
CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.

Bharti Airtel - Wake up Call !

The Nifty broke the resistance of 4850 today and closed higher on back of positive cues from the world markets...

Still treat this as corrective in nature as the major indicators are still in sell mode.

Bharti Airtel is one stock which has been hammered and I presume there are enough indications that the stock has been a victim of over-reaction (as usual)...



Consider a break out level of Rs 320 and major support level of Rs 299. A break out above Rs 320 should give targets in the range of 355 to Rs 370... Return to risk favors the buyer now! .

Short term traders may want to jump in and take benefit!

Happy bottom fishing - should we say ?

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.

CNX IT - losing momentum

The NIFTY yesterday touched a high of 4836 vis - vis my given target of 4845 on the previous day... It has closed below 4800..

The CNX IT has been one of the better performing sectoral indices. The CNX IT gained convincingly from the March lows of 2000 to the recent high of 5200... Impressive - considering that most investors and traders were busy with Tiscos and Reliances while the Infosys and Wipros of the world rallied.

That's the way the markets are... Stocks which most people are following , tend to under perform ...



The CNX IT index is currently showing signs of fatigue and losing momentum. Consider 4875 as the crucial support and a break and close below this level should give investors and traders an advance warning to book profits in their IT stocks and encash the mullah!

The level of 5200 is a crucial resistance and unless this is crossed, booking profit is more advisable !

Happy profit booking,

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.

Nifty becomes volatile ... as anticipated !

The last 3 days of NIFTY movement can be called nothing but "a trader's delight" !!

In my earlier blog post I had indicated that the Nifty is likely to become volatile. And the last 3 days movement has surely been so. {Also I am sure my blog readers could trade RCOM on break above Rs 170/- .... }



Today's movement towards the first retracement level has been with clear signals on the intraday charts (Those who have attended by advanced course should have traded extremely well in last 3 days especially)

Considering the short term RSI (parameter excluded from analysis), the immediate resistance to the Nifty is at 4785, above which a strong resistance should come near 4845 levels... This can be used as the profit booking level for intraday longs.

Watch the 4688 level. A close below this should now suggest the end of the corrective rise (and resumption of the down move).

Happy volatile trading !!

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.

SILVER - Get ready for the next move. .

The Nifty moves up on correction today . As indicated yesterday, the overall structure remains weak and traders must use this upmove to lighten their longs...

Coming to Commodities, GOLD made a new high yesterday at Rs 16500+ ( I had analysed gold a few days back, I am sure those of you who traded in Gold on the indicated break out of Rs 16000, are smiling from cheek to cheek!! )

SILVER on the other hand seems to have slightly underperformed Gold. But it is time now to have a re-look .....



Silver is taking rest at present and is forming a 'rectangle continuation pattern'.. A rise above Rs 27500 should give a good break out and medium term traders can target a move towards Rs.30,000/-. Keep stoploss at Rs 25750 being the crucial support level.

Commodities markets are likely to perform better than equity markets in the near term - No doubt today's traders need to trade in multiple markets!!!!

Happy trading !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.

R Com - time to Cover Short !!!

The Nifty moved as analysed . Break below 4730 has created heavy selling pressure and I have indicated target of 4400 levels. While we may see some corrective rise after today's fall, the overall trend still remains weak and there are also no specific signals of bottoming out yet. . . .

Among the stock which started crashing before the markets did, was RCOM. But at the current juncture, the risk - return has twisted in favor of buying ! ...



If you are short, you may cover your position and book profits. Aggresive traders may actually enter the stock on break above Rs 170 with a stoploss near to Rs 160. Target should be initially Rs 190 and then near Rs 210.

Happy Trading !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.

BankNifty - targeting 7000 !

The Bank Nifty was one of the better performers of the recent rallies. It almost tripled from 3300 in March to near 9600 in Oct before closing near 8400 last week.

The RSI oscillator has shown weak since 9000 levels while the MACD indicator too signalled caution during this period.



Immediate support is at 8350 levels and a break below this should lead us towards 7000 levels in the next few days ... Resistance on upper side remains strong at 9000 which can be used as the stoploss for short sell positions.

Those investors who may be holding banking stocks may book profits and wait for the correction to re-enter...

Happy profit booking!
CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.