TRADING STRATEGY FOR 13TH APRIL 2009 (Based on technical by O P AGARWAL)

Markets close the week strong Markets maintained their upward momentum during the past week despite having just three trading sessions owing to holidays.

The Sensex ended higher by around 4.4% over its previous close on account of strong buying activity by FIIs wherein they bought stocks worth about 13.5 bn. during the week. The Sensex has ended higher for the fifth week in a row, and is now up nearly 30% (2,478 points).

Market sentiment remained buoyant during the week as domestic institutional investors had absorbed heavy selling by foreign funds witnessed in first two months of calendar year 2009. Market sentiment improved further dramatically on signs of improvement in the economy with inflation nearing the zero level and sharp rally in global equities on hopes that the worst of the global economic recession may be over. Banking stock rallied higher during the week on hopes that the apex bank may sooner than later revise the interest rates to further give impetus to the economy. Meantime, Q4 results by the corporates will set the trend for the markets this week onwards as investors will be closely monitoring the same.

Infosys will announce their results on 15th April 09. Readers are therefore, advised to trade with caution as correction in the market is not ruled out at higher levels.

NIFTY FUTURE (Last close 3355.40) NF closed the week gaining 132 points amid high volatility and intra week swing of more than 250 points on strong buying in index heavy weight stocks led by Reliance Group. The counter may remain in the range of 3257-3481 this week, break above may take NF to 3529/3559 or else break below NF may slide to 3229/3181. for today’s trading NF will gain strength once it trades an remains above 3387.75, whereby it may move up to 3413/3436.Stron g support for NF exists at 3305.25, which if breached decisively NF may slip to 3286/3247.

INDIAN BANK FUTURE (Last close 91.50) Indian Bank is a full service bank, in which the Government of India holds 80% stake. The bank offers a wide range of services including a foreign currency banking unit at Colombo and specialized overseas branches at Chennai, Bangalore, and Mumbai exclusively for handling foreign exchange transactions arising out of export, import, remittances and non resident Indian business. The bank has recently figured in the list of world's biggest 2,000 companies by US magazine Forbes. Net profit of the bank rose 14.05% to Rs 350.70 crore in the quarter ended December 2008 as against Rs 307.50 crore during the previous quarter ended December 2007. The stock of the bank after moving range bound during the past week closed marginally higher above its short term trend line and looks positive on weekly charts. The stock may move to 95/101 once it trades and remains above 92.50. Strong support for the stock exists at 88.25.

CROMPTON GREAVES FUTURE (Last close 138.50) The company’s shares plunged more than 20% in two sessions during the last week of March 09 on dumping of shares by both FIIs and Domestic institutions on its plan to buy 41 percent in group firm Avantha Power & Infrastructure Ltd (APIL), on concerns about the investment. However, company spokesperson meantime, clarified and assured the investors that power generation is being viewed as a long-term business opportunity as well as forward integration of its core business and will prove a good investment in the long run. The stock thereafter, moved range bound and recovered from its lows and appears to be consolidating at current levels. The stock closed the week above its short term trend line gaining 5% over its previous close with average volumes. The stock appears positive on weekly charts and may move up to 147/151 once it trades and remains above 141.25. Strong support for the stock exists at 136.25. Readers may avoid trading in the above recommended stocks unless, they have risk taking capacity.

DEAR READERS, PLEASE WATCH THE MARKET TREND AND USE YOUR OWN DISCRETION BEFORE TAKING A TRADE. Protect profits with trailing stops and cut losses fast. Avoid adding contracts in loss making trades Visit : www.bazarbhavis hya.com regularly Email: opagarwal805@gm ail.com