11 Sept, 2011: Equity Buy/Sell (Technical View) IFCI research,

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Equity Buy/Sell (Technical View)  

Ø  Short / medium term traders should have trailing stops in place for individual scrips also and watch Nifty for overall guidance.

Ø  Cement shares already recommended held fort and continue to look good.

Ø  The following are good for accumulation :

o   Arvind > 87,                      Chambal Fert. >118,   Gitanjali >337,                  L&T >1730,

o   Tata Invest. > 517/50,      Glaxo > 2460,             Titan > 226 (resistance 230,237).

Ø  The following are for short term :

o   Dena Bank > 88,               HLL > 329,                   Indian Bk. > 215,             NIIT Tech > 213.

Ø  Reliance Ind. is showing some signs of stabilising but has a long way to go for showing signs of strength. We had on 21/06 mentioned that 750 levels should hold. We quote:

"Reliance which has been in sideways mode for more than a year and a half has gone down below its long term support of 850-860. One more close below this level could bring down the scrip to 750 (the level we expect to hold). Investors already long in the scrip can sell call options (when 850 is violated)"

On 01/08, we had mentioned that if 750 was violated its next support was far away at 450 levels. Reliance had violated 750 and also closed below 750 but thankfully failed our litmus test of two consecutive closes (whenever  key resistance/support levels are tested, we have always waited to see it there were two consecutive violations and this has helped us in avoiding whipsaws).

Investors can wait for signs of stength or buy near the long term support levels.

 Commodities:

We had mentioned that Gold could be held with stop around 26590. It had touched a low of 26853 before bouncing up by more than 1000 pts. (as we write). We had observed that Silver had support around 62500.  It touched 62763 and recovered more than 3000 pts. When there is volatility, it is better to buy near supports (when stops would be near and reward is high) and sell on decent returns.  

Have strict stop losses