STOCK TRADING TIPS : SELL - SYNDICATE BANK

HINDU BUSINESS recommend a sell in the stock of Syndicate Bank from a short-term perspective. It is seen from the charts of the stock that after recording an all-time high at Rs 164 in November 2010, the stock changed direction triggered by prolonged negative divergence displayed in the daily relative strength index (RSI). Since then, the stock has been on a medium-term downtrend, forming lower troughs and peaks. The stock plummeted 8 per cent last week, breaching its long-term uptrend-line and its 200-day moving average around Rs 110. Moreover, the stock slumped 4.5 per cent on Monday, penetrating its key support level of Rs 100 and the 50 per cent Fibonacci retracement level of its earlier up move. The stock is hovering well below its 50- and 200-day moving averages. Daily RSI is in the bearish zone and weekly RSI has entered this zone from the neutral region. Both daily and weekly price rate of change indicators are in the negative territory implying selling interest. We are bearish on the stock. We anticipate its downtrend to continue until it reaches our price target of Rs 95 or Rs 92.5. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 101.

DAY TRADING TIPS FOR 18.01.2011

DLF — Make use of rallies to sell the stock with stiff stop-loss at Rs 257 levels.

ICICI Bank — Desist trading as the near-term stance is cautious.

Infosys — Contrary to our view, the stock bounced up 2 per cent in the last session. Fresh long position is recommended only if the stock exceeds above Rs 3290 levels with tight stop-loss.

L&T — The stock witnessed choppy trading on Monday. Initiate fresh long position only if the stock moves beyond Rs 1700 levels with stiff stop-loss.

ONGC — Fresh short position can be initiated if the stock declines below Rs 1159 levels with stiff stop-loss.

Reliance Capital — The stock tumbled 6.5 per cent with good volume on Monday. The near-term stance is bearish. We recommend a sell with rigid stop-loss at Rs 587 levels.

Reliance Communications — We recommend a sell in the counter with stiff stop-loss at Rs 134 levels.

Reliance Industries — We re-affirm our view that fresh short position can be initiated only if the stock drives below Rs 986 levels with tight stop-loss.

SBI — SBI is finding base around Rs 2490 levels. Initiate fresh long position if the stock bounces up from Rs 2490 level with tight stop-loss.

Nifty Futures — Nifty futures was volatile in the last trading session. Fresh long position can be initiated only if Nifty futures moves beyond Rs 5700 levels with stiff stop-loss.

SOURCE: HINDU BUSINESS

MEDIUM TERM TRADING TIPS - BUY : EMCO

Yoganand D from BL Research Bureau suggests :

Investors with medium-term perspective can consider buying the stock EMCO (Rs 65.6). The company manufactures different types of high tension transformers and electronic energy meters. Since the multi-year low recorded at Rs 26 in March 2009, the stock was an intermediate-term uptrend until it encountered resistance at Rs 109 in January 2010. However, the stock reversed direction and started to decline gradually. It found support around Rs 57, a long-term base level in late August 2010, which also coincides with its 61.8 per cent fibonacci retracement level of its prior up move. After testing this long-term support level multiple times between August and December, the stock bounced up triggered by prolonged divergence displayed in daily as well as weekly moving average convergence divergence (MACD) indicators. Besides, the weekly price rate of change indicator also shows positive divergence backing this reversal. The stock has been on a nascent uptrend since then. During last week of December, the stock breached its 21 and 50-day moving average and is hovering well above them. The daily relative strength indices, which determine the speed and alteration of price movements, is on the brink of re-entering into the bullish zone from the neutral region and weekly RSI is rising in the neutral region. Moreover, daily MACD is featuring in the positive territory and weekly MACD has signalled a buy.

Our medium-term forecast on EMCO is bullish. We believe that the stock has the potential to rally to Rs 78 in the medium-term, following in a minor pause around Rs 71.5. Investors with medium-term perspective can buy the stock, while maintaining stop-loss at Rs 60.


(This recommendation is based on technical analysis. There is a risk of loss in trading.)

DAY TRADING TIPS FOR 17.1.2011

DLF

Fresh short position is recommended only if DLF drops below Rs 253 levels with tight stop-loss.

ICICI Bank

Initiate fresh short position if the stock declines below Rs 1000 with stiff stop-oss.

Infosys

As long as the stock trades below Rs 3,225 levels, the near-term stance remains bearish for the stock. We recommend a sell in the stock with stiff stop-loss at Rs 3,225 levels.

L&T

Fresh long position can be initiated only if the counter moves beyond Rs 1,725 levels with tight stop-loss.

ONGC

Make use of rallies to sell the stock with rigid stop-loss at Rs 1,195 levels.

Reliance Capital

The near-term stance is bearish for the stock. We recommend a sell in the stock with tight stop-loss at Rs 625 levels.

Reliance Communications

Initiate fresh short position if the stock fails to move beyond Rs 140 levels with stiff stop-loss.

Reliance Industries

Fresh short position is recommended only if RIL dives below Rs 986 with tight stop-loss.

SBI

The stock declined 2 per cent on Friday. The near-term outlook stays negative as long as it hovers below Rs 2,530. We recommend a sell with tight stop-loss at Rs 2,530 levels.

Nifty Futures

Fresh short position can be initiated only if Nifty futures reverses from 5,690 levels with stiff stop-loss.