Thursday, October 9, 2014

09-10-2014 DAY PERFORMANCE:DEALING WITH HIGHER PREMIUMS........

DAY PERFORMANCE:
Every Day Stocks Market gives new experience, even to Maestro of Share Markets.   Yesterday afternoon session started building of premium in Nifty Futures, which ended with 53 pts.    As we all know, pull back rallies will not give much time to dress up ourselves.   Since FIIs/professionals work with norms (profit vs cost), yesterday itself they have squared off their positions, which we have mentioned (selling of Derivatives and Equities by FIIs) in our morning report.  As Peer Markets opened with Green our Nifty also opened with Gap Up.  

Today many Traders might not be comfortable with market, as it started with Gap Up.   Who does not know how to deal with Gap Up and High Premium Markets, might have lost money also, irrespective of positive closing.   As per Technical Analysts observation, 70% of the  Gap Ups will be covered in the same trading session, when ever Market is running with normal premium.   If the Future Premiums are more than normal, we have to trade with near high (eod) SL along with Trailing Stop Loss from today's entry level.  Today also Market has followed same pattern.  Since yesterday Nifty Futures closed with higher premium (53pts) and Gap Up opening was taken place, pull back might have taken place along with short coverages by which market closed with 118 pts plus.  Nifty also halted at near to the recent high of 7978 (point correction started) and closed at 7961.  

STOCKS PERFORMANCE:
Sail: Buy >  71.75 Trg 73/73.50 SL 71
        ACTUAL: LOW: 71.65 HIGH: 73.80
 
Apollotyres: Buy > 213 Trg 218/220 SL 208
                   ACTUAL: LOW: 214.05 HIGH: 220 (STOCK DONE DOWN WARD JOURNEY)
 
Hexaware: Sell < 191 Trg 184 SL 197
                 ACTUAL: LOW: 189.20 HIGH: 192.70  (MOST OF THE DAY STAYED IN NARROW RANGE)
 
We wish you happy trade for tomorrow.  Be careful with News driven price hikes.  Generally news driven price spikes will not sustain for long.

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