Trading strategy for 14th October 2014

The market after weak opening yesterday soon slipped to session low in early morning trades but recovered as the session progressed reversing earlier losses led by gains in metals, banking stocks among others. The Sensex closed the day at 26384, up by 86 points after intra-day low of 26092 and high of 26443 while the Nifty ended at 7884, up by 24 points. The market breadth remained flat with 1518 shares advancing while 1540 declining. Readers are advised to trade with caution keeping stock specific approach.

NIFTY FUTURE (Last close 7911.40)

The counter after negative opening yesterday slipped to day’s low of 7817 in early morning trades on weak global cues but witnessed recovery as the session progressed on select buying in front line stocks. The counter finally closed with marginal gain of 24 points. The counter may move further up to 7934/7966 on positive opening. Strong support for the counter exists at 7894.25 which if breached decisively with volumes then it may slide to 7871/7855.

BANK NIFTY FUTURE (Last close 15711.20)

The counter after weak opening yesterday remained range bound till late morning when hectic buying coupled with short covering emerged taking the counter to session high of 15749 in closing hours. The counter finally closed gaining 214 points. The counter may move further up to 15767/15837 on positive opening. Strong support for the counter exists at 15672 which if breached decisively with volumes then it may slide to 15620/15583.

REC FUTURE (Last close 251.75)

The stock after consolidating during the past sessions closed yesterday above its short term trend line with moderate volumes. The stock appears positive on daily charts and may move up to 254/256 on volume trading. Strong support for the stock exists at 250.00.

PFC FUTURE (Last close 241.45)

The stock after consolidating during the past sessions closed yesterday above its short term trend line with moderate volumes gaining marginally. The stock appears positive on daily charts and may move up to 244/246 on volume trading. Strong support for the stock exists at 239.00.

Posted in: Indian Market Tips