Wipro wiped twice

Stock is falling since 18/03/2010 and volatility escalated with fall. Inspite of that people hasnt give it up. That is apparant from intact volume range.

Stock seeing strong support at 380 and this support is tested twice. The fall halted with dragonfly Doji. Obvious sign of reversal but it ddnt last long and two thirst of uptrend stopped at important level of 38.2 and 61.8. Yea, Fibonacchi works.

Stock is about to test the support third time and you can go short. Take profit of 10.
(This recommendation is solely for future)

Pick of the day

Two futures from entirely different sectors can fetch good fortune tomorrow. Go long on Ranbaxy June and short on Rolta June future.

(charts are not uploaded due to some technical errors)

Still you can take position as well. Rabaxy is a good buy at current level. Keep it for a week. You can reap Rs 20. So the target is 480

Short on Rolta at 165. Target 160

Happy trading.

(u will see the charts tomorrow)

Positive Breakout

ABIRLANUVO has seen a positive breakout (breaching 50 EMA) with a huge volume.

787 was a critical level as it served as support and resistence twice. This level was proved a big support on 24/02/2010 and second time on 19/04/2010. Once this level was breached on 05/05/2010 it was testes twice in second week of May and on 14/06/2010.

The recent fall started on 12/04/2010 and eneded on 07/06/2010 and current breakout stands at the 38%

But two factors that makes it good bet are huge volume and MACD  zero line cross over. So if price sustains this level then we can expect at least 50 % retracement (840)

**So I recommend ABIRLANUVO  at current level for very short term.**

Missed Positive Divergence in Ashok Leyland

Amidst chaos in Nifty we litrely missed a wonderful opportunity in Ashok Leyland June future.

Target HIT

As I wrote about Cipla in the last post on 2nd June, weekly target of Rs10 has been achieved in four days. Now we are eagerly waiting for the short-term target of Rs.40.

Check out the entry and exit level in above picture. I strongly suggested to buy Cipla June future @ 325 level. Today on 10th June Cipla June future closed at 336.65 with an intraday high of 337.35, and has already given Rs 10 profit


Now lets calculate the profit of the trade.
Lot size - 1250
Buy   -     325
Sell    -     335
Profit -     10

Total Profit = 1250*10 = 12500

Wasnt that good trade. Patience of 8 days reaped great profit.

GO-LONG

Current fiscal will be a tremendous year for Indian biotech industry. Global recovery has stimulated Indian bitotech industry in 2009-10 and it is apparent from 52% growth in revenue. Among them Cipla can be a good buy both on fundamental and technical front.

Cipla is a prominent Indian pharma company for manufacturing low cost anti-AIDS drugs for HIV patients in developing countries.

Resently Cipla has formed a wholly owned subsidiary 'Cipla Singapore' in Singapore which will aid logistic and distribution of compnay's export business.

Price Information
Open 323.00
High 327.95
Low 322.20
Last Price 325.10
Prev. Close 324.00
Close Price 324.75
Change 1.10
% Change 0.34
Total traded quantity 1282374
Turnover in Rs.Lakhs 4171.82


OI call option @ 340=8750
OI put option @300 =5000

We can expect and anticipate a profit of Rs.10 in coming days and Rs. 40 in a month. I consider Cipla a good buy.

F618

It was the great day to learn as Nifty, in technical terms, showed two classic phenomenon. After steady downfall since 11th  May, the technicals of Nifty showed reversal on 26th May.

but the good days dont last long and Nifty is not an exception. As Niftry retreats people are bit shocked and anticipating a contiuation of downtrend. Now here comes the Technical Analysis into the picture. Check this out..

Traders panicked as Nifty had a red day on 1st June. On technical front Nifty displayed a classical 61.8% retracement. A phenomena that we all read in textbook is appeared in real time.