Buy India VIX as it inaugurates trading on NSE - 27-Feb-2014

1) India VIX (India Volatility Index) is available for trading on Indian bourses from tomorrow onwards. The traders can go long on India VIX due to following reasons:

2) India VIX is trading close to its all time lows, which is around 13. Also Nifty is fast approaching its crucial resistance zone of 6285-6350 where volatility is likely to increase. See the daily charts for India VIX and Nifty below:

3) On 5 Day chart also, it is approaching a state of exhaustion and likely bounce is expected.

Buy PNB as shorts unwind - 16th Feb 2014

1) PNB was up 1.5% on Friday after falling consistently for last few days.

2) Derivatives data indicate that unwinding happened in Futures and Puts which is bullish sign for the stock as it is falling consistently after last peak formation on 4th Feb.

3) Volume was also above 1 week average which indicates that this short covering is likely to sustain in the coming days.

4) On 5 Day chart, it has broken the downtrend around 528 Rs which can be taken as support level. The same can also be seen in daily charts as well.

5) On daily chart, one may see resistance coming around 550-555 Rs levels where traders can book profits.

Buy Crompton Greaves as it picks up momentum - 13th Feb 2014

1) Crompton Greaves was up 5% yesterday, supported by some positive indicators, which makes it a buy recommendation.

2) Open Interest in the stock has gone up by 22% yesterday. Futures Open Interest went up by 15%.

3) Call / Put Ratio for Fresh Open Interest addition stands at 0.45. Gross Call / Put Ratio is above 1 (at 1.14). This means that we still have scope of further increase in Open Interest.

4) Volume based indicators are also positive. Trading Volume went up by close to 2.5 times of Monthly Average while Delivery Volume is also up by 2.7 times of its monthly average.

5) On technical charts, one may see that before making this move, the stock consolidated in 118-120 Rs range. (below given is 5 Day chart)

6) One may go long on declines, preferably around 123 where it stopped yesterday before making further up moves.

7) Where should be the stop-loss? It can be placed below 118 where we have seen consolidation happening.

8) And what should be my target price? The first target price can be placed at 133 where double tops were made during last up moves.

9) If the same is breached, then the next target arrives at 155 Rs where exists the three beautiful peaks.

Have a profitable trading!

Sell Ashok Leyland as institutions offload - 11 Feb 2014

1) Ashok Leyland on Monday, has shown weakness accompanied by heavy trading & delivery volumes and addition of Open Interest, which further indicates weakness in the stock.

2) The share accumulated 47 Lakhs shares of Open Interest. Out of the same, 41 Lakhs shares have been added in Feb contract and 1.8 Lakhs in 15 Put.

3) Trading Volumes and Delivery Volumes have doubled and trebled respectively from its 1 Month average which indicates institutional based selling. The share was closed 2.5% yesterday.

4) On the technical charts, we have seen institutional selling coming yesterday around 15.9-16 Rs level after which stock tried taking support around 15.7 Rs levels. We feel that these are the levels to get short.

5) If we look at the daily charts, the last support now stands at Rs. 15.3-Rs. 15.1. If that is broken, then no major support seen before 13.5 Rs which makes the stock more attractive to go short.

6) So, our recommendation is to Sell Ashok Leyland and keep stop-loss at 16.25 Rs. for intraday and 16.45 Rs for positional trades. The positions can either be covered at 15.1 Rs or if that too is broken, then one may wait for the levels of Rs. 13.5 to cover the shorts.

Buy Crude Oil around 6200 - 10 Feb 2014

1) Crude Oil has gained momentum on Friday gaining further strength on the upside. The cues are strong from the rising demand in West as it comes out of Cold Weather prevailing in the Northern American countries and Europe.

 

2) Open Interest in Crude has increased by 21% on Friday. The price went up by 1%. Volumes sustained around 1 Month average which is a bullish sign as it is not showing signs of abate.

 

3) On the technical charts, Crude is trading above the moving averages. This move likely to find first hurdle around 6260 where stands the previous high made in the last week of December.

 

 

4) Positional traders can go long around 6180 if it consolidates around 6180-6220 Rs levels. One may put stop-loss at 6060 Rs where stands the previous low and target level at 6360 where exists the multiple peaks made during the last year.