Hind Unilever - defensive buy !

The Nifty again almost made a 'Doji' formation on the charts and is clearly suggesting the indecision in the mind of the market. Watch the 5240 -5225 level for intraday tomorrow.

One stock which has recently been hammered is HUL (Hind Unilever) the 'long term investors' stock'. Well it seems that it is taking support near a multi month low of Rs 220 and rebounding from there.



Traders may want to buy the stock at Rs 245 with a stoploss being placed at 232 for a upward move near to 265- 270. In fact a break above Rs 245 will also give a nice derivative trade !

Being a defensive stock , it can have a tendency to go againt the market direction.

Happy trading !

CA Rajiv D Khatlawala
www.investogyan.com

NATGAS . . should flare up soon

The NIFTY closed the settlement today near to 5250 expected level. Most of the movement today was 'based' on derivatives expiry settlement / carry over.

But some commodities saw action in last few days. GOLD was on a roll yesterday as the world financial markets went on a selling spree. Safe Haven eh?

Well but one commodity which should be a low risk trade is NATGAS.



After a spell of falling prices there has been a good consolidation near to Rs.170 levels (on MCX) and we should expect that a break above Rs 194 should open up targets of 209 - 215 in coming days.

Long positions above Rs 194 should have stoploss near to Rs 185. For the time being consider this upmove as a 'corrective' bounce!

Happy trading !

CA Rajiv D Khatlawala
www.investogyan.com

BankNifty . . time to 'bank' profits!!

The Nifty had a free fall. While we did not expect this in a down gap, nonetheless we were expecting it. In yesterday's ITG meeting itself we discussed it. So the members were ready for the fall!

Banking stocks are showing mixed signals. While ICICI Bank and the likes are falling, SBI and the likes are rising... But a look at the BankNifty indicates that a reversal is now due (or overdue).



Consider 9500 as a crucial support area and a break below this level should give the necessary trigger. Even advanced indicators (not shown here) are suggesting the possibility of trend reversal.

Keep a down target at 8800 (on break below 9500). Investors who are invested in banking stock may want to take profits - to their own banks!

It is also interesting to note that many of today's gainers are defensive stocks / stocks from defensive sectors!!

Happy market watching !

CA Rajiv D Khatlawala
www.investogyan.com

YES BANK - - OH NO !!!!

The Nifty remained more or less subdued while the overall market breadth was negative. Most of the market breadth indicators were weak.

Among the sectors which are likely to see profit booking is Banking - which has risen in recent weeks. And one stock which seems to be nearing the peak is YES BANK.



The price charts suggest that the positive results seem to have been factored in to the price and a medium term correction is due. I would not be surprised if a double top formation is formed on daily charts.

Keep an eye on 267 and a break below this level should trigger a selling / profit booking mode for a down target near to Rs 230/- levels. Keep a stoploss at 280.

As for other stocks, lot of sell signals being generated in my watch list . They will be discussed today at the ITG meeting.

Happy Trading !

CA Rajiv D Khatlawala
ValueTrade Academy
www.investogyan.com

Crude OIL - $100 again ?????

The Nifty remained sideways for most of today even as the Asian markets rallied. It seems the results season is having its effect. One thing keeps coming to my mind often - will the Sensex / Nifty peak out before Asia does ???

Well as for happenings in the other markets - Crude Oil is remaining above the $82 mark and has regained $85. The price chart structure is indicating that it is getting ready for the next lap towards $100. How soon , that we cannot say.



I expect that on the MCX , a break above Rs 3845 should give the necessary trigger for the move to 4000/- and then beyond it. There is strong base currently near to 3600/- However on break out, one can use a stoploss just near 3720/-

And yes, somethings cooking in NATGAS too.... we shall that in subsequent blogposts...

Happy trading!

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.
www.investogyan.com

NIFTY - the contrarian ? ?

The Euro zone is again at logger heads. Greece's problems have resurfaced and it is worried on how to the $11 billion needed for repayment. Euro crashed against the dollar to its yearly low , whiel other asian markets too followed suit.

But the Indian markets are still positive and that is despite high inflation and reports of a higher budget deficit due to oil marketing companies' increasing losses. Are we 'hoping' our way out of our problems ?



Time will tell. Nifty at present is still in 'no man's land' A road range for reference is 5250 and 5340. I will be surprised if it gives upward break - but then we are mere followers of the market and we shal do so!

A close below 5240 now can give the needed warning to all of us.

Happy trading !

CA Rajiv D Khatlawala
www.investogyan.com

USDJPY . readying for upmove?

The Nifty gave an intraday rally which later proved to fizzle out. But those of you who have attended my intraday trading workshop, surely would have gained hugely. This is the kind of day we wait for !

Well, many blog readers have requested me to cover world currencies in my blogposts and so I thought of evaluating something which i personally trade.

USDJPY seems to be readying for a upmove. Currently it is inside of a bullish 'Flag' formation and i expect that a break out above 93.80 (safely 94) should trigger a fresh round of buying in the pair.



The target could be near to 99-100 in near medium term. ( a big move in currency markets). Keep your stoploss near to 91.50.

Well those of you who are aware, we can now trade this pair in Indian markets (NSE / MCX-SX) too... (Incidentally that is where I too trade).

Surely you are all becoming 'Global Traders'

Happy 'currency' trading !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd .
www.investogyan.com