The Professional Ticker Reader

These are stocks that we expect to out-perform the markets. Cash and derivative strategies are advised thereon. Please stay online to enable loading of graphics from our servers. Please also read the trading tips section at the end of the newsletter.

Hero Honda - this two wheeler major is moving in a narrow downward band and the scrip encounters resistance at the trendline depicted in the graphic. The momentum oscillators are pointing towards a consolidation, which if confirmed by the price graph, will see a breakout. The downward sloping trendline needs to surpassed with high volumes and a consistent closing above this trendline will be a buy trigger.

Infosys - This software bellweather is showing signs of consolidation above it's 200 day SMA and is seeing defensive buying due to relative insular strength in the sector. The scrip has a bonus attraction too and is likely to see bear covering before is goes ex-bonus. Though not chartically a very strong candidate, higher risk appetite players may buy in small lots and hold with hedged positions in the options segment.

Punjab National Bank - This PSU banking major is showing signs of consolidation near it's 200 day SMA and is likely to attempt an upmove technically. The momentum oscillators are showing signs of a build-up, which will be confirmed if the stock closes above the 282 mark. Buying is recommended in small lots.

Reliance - this index heavy-weight is showing signs of bottoming out as the markets are showing signs of consolidating at the present levels. If there is to be a revival in the market sentiments, this scrip has to lead the rally due to it's weightage in the indices and sentimental reasons too. Fundamentally, the scrip has raised product prices and with the FII's turning buyers again, this stock is likely to see further appreciation.

Siemens - this electrical components major is a MNC and market favourite in it's segment. The scrip has had a big run upwards as the rally has seen a 6 times multiplication. There has been a healthy corrective fall and the scrip is likely to take support at the 52 week SMA which is placed at the 725 levels. Long term delivery based buyers can contemplate purchases at significant declines for a 6 month perspective.

Telco - this automobile major is in a short term downtrend and is likely to witness selling pressure on major advances. We advocate selling short on significant rallies, expect the 30 day SMA to be the resistance levels.

Tisco - this counter is moving in a downward sloping channel and is showing a bearish short / intermediate trend. However, bonus considerations are likely to take this scrip higher on purely speculative grounds. Buy in the near term in very small lots for a high risk trade.

Zee Telefilms - The media industry has had a good run in the last few months, thanks to the economic uptrend and the elections, both of these factors have resulted in higher advertisement revenues. The scrips in this segment are showing a mixed trend and Zee Telefilms is a strong market player. The charts are pointing towards a short term bullishness on the counter and aggressive / high risk traders may buy in small lots for short term gains.

BSE Sensex - The sensex is showing a support at the channel bottom and a possibility of a bounce back from this juncture is high. The momentum oscillators are pointing towards a build-up, which needs to be confirmed by the price graph. Any closure above the 5000 levels will see an upmove gaining momentum. An exceptionally strong upmove can see the 5150 levels.

Your call of action - Since the Sensex futures are not very liquid, we suggest trading the Nifty 50 instead.

Nifty 50 - The Nifty is making a similar chart pattern to the Sensex and is getting support at the channel bottom at the 1450 levels. An upmove is likely to see the 1560 - 1580 levels as a possibility in the near term. Should the markets be exceptionally strong, expect the 1610 levels to become a reality. A fall below the 1450 levels will see a new low in the near term.

Your call of action - We advocate fresh trades on the Nifty on the long side only on advances above 1532 levels ( in spot ) and maintain with a stop loss at the 1510 levels and an upper target of 1555 - 1560 in the near term in a conducive market.

Dow Jones Industrial Average - this old economy benchmark is showing signs of revival after having taken support at the 52 week average. Should the index stay above the 10,300 mark, expect the bullishness to continue and the Dow Jones to test the 10460 levels. On the lower side, expect profit taking to take the index down to the 10100 mark in the coming week.

Dow Jones - Weekly chart

Your call of action - Since Indian investors are not allowed to trade in overseas markets, this is a pure academic study.

Nasdaq - this new economy index is showing relative under performance as compared to the Dow Jones and faces tremendous congestion at the 2000 levels, which needs to be surpassed on a continous closing basis. Should the upmove be possible, expect resistance at the 2080 and lower support at the 1910 levels.

Nasdaq - weekly chart

Your call of action - Since Indian investors are not allowed to trade in overseas markets, this is a pure academic study.

FTSE - This UK benchmark index is showing a flat movement in a narrow sideways movement between the 4325 and the 4500 levels. Unless there is a breakout / breakdown beyond these levels, expect the scrip to remain sideways in the near term.

FTSE - Weekly chart

Your call of action - Since Indian investors are not allowed to trade in overseas markets, this is a pure academic study.

Trading tips for the week

The put / call ratio is climbing and is currently at the 0.32 : 1 levels and the outstanding positions in the derivatives segment have shown a quantitative increase on a week-on-week basis. The FII investments are steadily turning positive.
There is offloading at higher levels in stock futures. That indicates a cautious approach as long positions in individual stocks is being hedged by Nifty shorts.
The index heavy-weights are showing strength again. This in turn will boost the indices and cause a feel good factor. The only worry is that this upbeat sentiment should continue.
Trades must be executed in minimal volumes due to the higher volatility expected. Trade fewer counters and conserve cash for future opportunities.
Standby for fresh recommendations via SMS on a real - time basis.

The author is a Mumbai based investment consultant and invites feedback at Vijay@BSPLindia.com and ( 022 ) 23438482 / 23400345.

SEBI disclosure :- The author has no positions in any securities mentioned above.