Buy IFCI as it reaches consolidation range - 23 March 2014

1) IFCI seems a nice bet from technical charts point of view. On the daily chart, it has seen some correction coming in the stock which has put it favorable on risk-reward ratio.

2) The charts indicate that IFCI is still in bullish range but the recent correction has helped it reached the consolidation range of 23.6-24.30 Rs. At 23.80 Rs, we may also see long term average trend line converging which will further provide impetus to the stock to go up.

3) We may see atleast a small technical bounce from 23.80 Rs levels to 24.25 Rs in a day or two. Please trade cautiously and do not attempt this small technical bounce more than 2 times.

4) Similarly, if it is able to cross 25.10 Rs on the upside, then again one may go long with stop-loss of 24.70 and target levels of 25.60 Rs where stands the long term resistance line.

5) For reference, the daily chart is given below:

Straddle in Karnataka Bank for 105 Strike Price - 13th March 2014

1) Karnataka Bank has too risen along with other banking stocks in the last week or so.

2) The stock has some serious Call and Put Open Interest addition in the last week. Today also, 110 Call has seen tremendous amount of Open Interest which indicates shorting happening below 110 Rs.

3) Technical charts though are showing positive picture, and hence, we decide to take Straddle approach tomorrow in the stock. 

4) Buy both 105 Calls and 105 Puts, if it come for not more than 8 Rs combined. Buy the position and close it, if it goes to 98 Rs level on the downside or 114 Rs on the upside.

Buy Hexaware as IT stocks regain momentum - 12 Mar 2014

1) Information Technology stocks have been under pressure for last few days as institutions churn portfolios and move from defensive sectors like IT to high beta sectors such as Banking, Real Estate and Infrastructure.

2) Hexaware though, has bounced back from lows of Monday to close up 2%. Open Interest has gone up by 5%. 150 and 160 Strike Price Calls have seen unwinding indicating the strength in the stock.

3) Trading Volumes and Delivery Volumes have gone up by around 2 times and 1.3 times respectively from its 1 Week average.

4) On the technical charts, one may seen a break out after consolidation around 154 on Monday. The resistance can be seen around 163 Rs.

5) On the daily charts, one may see that momentum still exists.

6) Hence, one may buy Hexaware around 157 Rs with stop-loss at around 152 and target levels of 163.

Indian Oil may see trend reversal - 07th March 2014

Indian Oil Corporation (IOC) has rallied sharply from 200 Rs to 265 Rs in last two months.Yesterday also, it was up 3.5% to close at 265 Rs. 

Open Interest is up 33%. Now looking close at the derivatives data, it can be found that 250 Put and 240 Put saw the maximum addition and that too at higher closing price, despite stock going up (Put indicates weakness in the stock). 250 Put saw new positions of 1.4 Lacs shares and 240 Put saw new positions of 2 Lacs shares.

Trading & Delivery volumes indicate exhaustion as they trade 40% below 1 week average and almost 50% below 1 Month average.

On the charts, we can see long term resistance in 265-275 Rs range which can be ideal level to sell the stock. Keep stop-loss around 281-282 Rs.

Where to book profits? On the short term 5 Day chart, one may see two levels where support may come. One at 258 Rs and another one at 252 Rs. Book profits in between these ranges.

Apollo Hospitals showing weakness in strong equity markets - 07th March 2014

On the day when Nifty is just on the verge of its all-time highs, Apollo Hospitals showed weakness. The stock was down 1% in Thursday's session.

Open Interest went up by 20% on Thursday. It is now at 1 Month High and just 6% below the 3months high.

Trading and Delivery Volumes in the stock are lesser than 1 week average which provides some comfort to the stock.

On the charts, the stock is very very close to a breakdown. The levels in this case to watch out for is 894 on closing basis. If the stock closes below this level, then we may see it correcting sharply to 870 Rs levels where we have long term support coming up.

For intraday traders, one may sell around 905 Rs levels with stop-loss at 909 and targets of 898 Rs.