Important stocks and their price levels

Dt: 21-May-2013
Below are the list of important stocks which control 65% of Nifty movement. The original list comprises of 13 Stocks. I have listed below only 11 of them as the other 2 stocks did not have clear trading signals. The stock levels are for cash market only & the levels for BankNifty & Nifty are their respective spot prices.

HDFCBANK     [CMP=707,  SELL FOR TARGET OF 689,   KEEP STOP LOSS @ 725]
HDFC                [CMP=902,  SELL FOR TARGET OF 867,   KEEP STOP LOSS @ 910]
ICICIBANK      [CMP=1211, SELL FOR TARGET OF 1166, KEEP STOP LOSS @ 1236]
ITC                    [CMP=331,   SELL FOR TARGET OF 312,   KEEP STOP LOSS @ 344]
M&M                 [CMP=987, SELL FOR TARGET OF 971 / 950, KEEP STOP LOSS @ 1010]
ONGC                [CMP=326, SELL FOR TARGET OF 320 / 305, KEEP STOP LOSS @ 350]
RELIANCE        [CMP=828, SELL FOR TARGET OF 803 / 770, KEEP STOP LOSS @ 850]
SBI                     [CMP=2360, SELL FOR TARGET OF 2275, KEEP STOP LOSS @ 2445]
TATAMOTORS [CMP=292, SELL FOR TARGET OF 285 / 268, KEEP STOP LOSS @ 312]

LT                      [BUY ONLY @1515 FOR TARGET OF 1650 / 1725 , KEEP STOP LOSS @ 1476]
TCS                    [CMP=1492, BUY FOR TARGET OF 1535 / 1570, KEEP STOP LOSS @ 1440]

BANKNIFTY   [CMP=13066, SELL FOR TARGET OF 12720, KEEP STOP LOSS @ 13456]
NIFTY              [CMP=6114, SELL FOR TARGET OF 5980, KEEP STOP LOSS @ 6215]


Please note the above levels may take 2 to 4 trading sessions for the target to be achieved. These levels are given for trading assistance so that you can take high probability trades.

Happy Trading !!!

Price Action Trading

Below are the charts of Unichem Lab and IVRCL Infra stocks with their expected price action during this week of 20th May to  24th May.

Nifty Open Interest Clue !!!

Date: 02-May-2013



Nifty open interest dashboard suggests that the market may soon see some correction as it nears 6000-6150 mark and this correction may take Nifty down upto 5700-5750 levels.

The reduction in open interest of deep-in-the-money calls of 5700 strike is seen as long traders unwinding their positions similarly we can see that Out-of-the-money 6200 calls are being sold aggressively in anticipation of correction as we get near to 6200 mark. See the levels marked in Red circle on the image below.

The RBI policy review scheduled on Friday, 3-May-2013.  If RBI cuts the interest rate, as expected, we should start selling Nifty. Stop loss will be 6230. Target will be 5750.

Nifty Open Interest - May Series