Daily Stock Traders Guide 08122011

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Daily Stock Trader’s Guide                                                                                                                                                                                                 Dec 08, 2011
                                                                                                                                                                                               US stocks were mixed as differences
                                                                                                                                                                                               emerged between European officials strug-
                                                                                                                                                                                               gling to agree on a debt-crisis deal ahead of
                                                                                                                                                                                               summit starting from 8th Dec.. Dow was up
                                                                                                                                                                                               0.1%. S&P 500 had fallen 2.65 points.
                                                                                                                                                                                               Nasdaq was down 0.42%. Traders hope
                                                                                                                                                                                               EU leaders will agree by Friday to link their
                                                                                                                                                                                               budgets more closely. France & Germany
                                                                                                                                                                                               have called to renegotiate founding treaties
                                                                                                                                                                                               & allow a central European authority to
                                                                                                                                                                                               enforce greater fiscal discipline. Hopes for a
                                                                                                                                                                                               deal dimmed when a German official said
                                                                                                                                                                                               its unlikely to reach a deal this week &
Nifty on Wednesday closed up by 23 points or 0.47%. Asian shares were traded in green but European shares traded in                                                                            could take until Christmas. European stocks
red on news that European leaders would not be able to solve the debt crisis this week in a summit starting today in                                                                           & euro slid on this news. UK’s FTSE-100
Brussels. Further Standard & Poor's is putting the European Union on review for a possible downgrade of its triple-A credit                                                                    ended down 0.39%, while in Paris the CAC
rating as economic conditions worsen & leaders remain divided over what to do. S&P says its credit review will focus on                                                                        -40 dipped 0.11% & Frankfurt's DAX 30
the financial ability of euro-zone countries to support the EU's repayment of its debts. Another bad omen is non serious                                                                       dropped 0.57 %. Milan shed 1.24% & Ma-
attitude of our Government to push reforms as evident by retracing steps to pursue FDI in retail. Overall all nagging is-                                                                      drid 0.79%. The euro slid to $US1.3391
sues globally & domestically still persist hurting investment sentiment. Our numbers released last week were bad with                                                                          from $US1.3397 late in New York on Tues-
decline in 2Q GDP, slowing exports & decline in PMI reading. Economists suspected the pace of growth may languish at                                                                           day. Markets rose in Asia on hopes that a
7 % in the coming quarters. Given slowing growth, there's a hope that RBI might pause in its interest tightening cycle on                                                                      meeting of EU leaders will finally lead to a
its Dec. 16 meeting. FIIs are net sellers this year compared with a investments of $29 billion in 2010. Therefore traders
                                                                                                                                                                                               plan that will bring an end to the crippling
avoided taking "large positions". Nifty which is one of the world's worst performers having fallen 15.51% in last 365 days
but its last week was best (up 7%) since July 2009 on prospects of a revival in FFI inflows & expectations of a pick up in
                                                                                                                                                                                               euro-zone debt crisis by by running two
domestic growth. Doubts are expressed whether the last week momentum is sustainable. Technically speaking market is                                                                            huge rescue funds to protect weak econo-
still below all 100 & 200 DMAs. 200 DMA is stationed at 5341. Nifty is moving in a wide sideways band between 4639 (hit                                                                        mies. Tokyo closed 1.71% & Seoul climbed
on 24th Nov) & 5400 since August that can turn out to be a final consolidation before a trend deciding movement. Nifty is                                                                      0.87. Hong Kong gained 1.58%. Shanghai
up by 230 points in last 4 sessions. Nifty breached its key support at 5196 & remain below it during last 18 trading ses-                                                                      was up 0.29%. Standard & Poor's i's putting
sion. Nifty managed a close above 50 DMA at 5018 during last 2 session & this is a bullish signal. If Nifty crosses strong                                                                     the European Union on review for a possi-
resistance zone between 5350- 5400, bulls can start preparing for a party as medium-term trend will turn positive. Right                                                                       ble downgrade of its triple-A credit rating.
now resistance is at 5063, 5100-09 & 5125. If the index fails to get past 5109-25, it can decline to 5032, 5016, 5000,                                                                         The move come 2 days after S&P warned
4955, 4920, 4850 or 4820. But in case Nifty moves strongly below 4639 look for 4400 & 4000. Traders can buy in de-                                                                             Germany, France & 13 other euro-zone
clines as long as the index trades above 4920. Short-term targets on a move above 5119 are 5180 and 5311. Market is                                                                            countries of possible credit downgrades as
above Fibonacci retracement at vital 4785 (around which Nifty got support on 21st Nov & rebounded on 22nd Nov) is a                                                                            economic conditions worsen & leaders
welcome sign for bulls. It looks that slide that began from 6338 top is continuing & is on road towards 4438-4400 & 4187.                                                                      remain divided over what to do. The euro-
Nifty if at all wants to regain its pride, has to move & close above 5200. Market is likely to open flat with bearish bias in                                                                  zone member countries contribute
sync with overseas cues. Trade with caution & proper stop loss.                                                                                                                                62% of the EU's revenues. S&P says its
                                                                                                                                                                                               credit review will focus on the financial
Performance Dec 07                                                                        SCORE 2/5                               Spot NIFTY Movement                                          ability of euro-zone countries to support the
           CIPLA                              1st LTR ACHIEVED                                   NIFTY 50                                High                           5099                   EU's repayment of its debts. TODAY: Nik-
                                                                                                                                                                                               kei is down by 1.04%; Hang Seng fell by
          CAIRN                              1st UTR ACHIEVED                                  ADVANCE 28                                Low                            5032                   1.20%; China is down by 0.80%; Austra-
                                                                                                                                                                                               lia is trading in red by 0.4%. SGX Nifty is
     JINDALSTEL                                 REMAIN IN NTZ                                    DECLINE 22                             Close                    5063 (+23)                    trading down by 10 points at around
                                                                                                                                                                                               7.40 IST.
     HDFCBANK                                   REMAIN IN NTZ                                  LAST 30 DAYS                     Last 19 Day                             - 228
     TATAMOTO                                   REMAIN IN NTZ                                          - 4.29%                 Nse Cash T/O                          6055 Cr.
DAY TRADE RECOMMENDATION FOR TO-DAY                                                       Supports & resistances levels likely to act within a +/- 5 points
        STOCK                        LOWER TARGET (LTR)                                   Stop LOSS Sell BELOW No Trading Zone Buy ABOVE Stop LOSS                                                              UPPER TARGET (UTR)

   AXISBANK                           988/96/1002/1011                                       1040                     1020                   1020-1060                           1060              1039          1068/77/88/1096
        CAIRN                          300/304/308/312                                         322                     315                      315-329                            329              321            332/35/38/342
   HINDALCO                           122/25/28/30/132                                         138                     135                      135-142                            142              137              144/47/150
    RELIANCE                          768/74/80/86/792                                         810                     798                      798-821                            821              809         827/32/40/45/850
           TCS                   1108/20/28/36/44/152                                        1180                     1162                   1162-1200                           1200              1179          1208/16/24/1232
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