TRADING STRATEGY FOR THE WEEK STARTING 2nd SEPTEMBER 2013

Despite the roller coaster ride last week, the net weekly loss in

the sensex was less than one percent. The weekly closing was

at 18619. If the market reverses before moving above 19000,

then there could be a steep decline in the coming weeks. In this

scenario the downward targets could be 16885 and 15777. The

index has to close above 19250 to negate the bearish short term

outlook.

The Nifty closed at 5471. If the NIFTY is unable to make progress

on Monday morning, then we may see a level of 4880 and 4500 in

the coming few weeks. If the Nifty moves forward, then it faces

resistances at 5605 and 5720. The support on the downside is at 5180.

The stock that jumped over 30 percent last week was SESA GOA.

Last week the stock breached the resistances of 160 and 175. Now it

faces resistances in the 200-205 band. Only if it crosses this band ,

then we can see a target of 220 and 235. Downside supports are at

175, 160 and 140.

M&M FINANCIAL SERVICES has taken support at 235. The stock

faces hurdle at 260 level. A cross above 260 can take it to 285. The

Range of the stock is 215-260.Medium term supports are at 240 &

228.

Option traders can take short positions in DLF INDIA.

Sell Rs 100put  and 145call at Rs 4 & 5.8 respectively

For maximum profit DLF should settle between 110- 145.

Only a close below 101 or above 154 will make this position

Negative. Market lot is 1000.

NMDC has declined from 572 level in JANUARY 2010

It made a low of 92 The stock is in a minor uptrend and can reach

130-135 level

Exit  JP ASSOCIATES on break of 30 level.

FOLLOW THIS BLOG FOR MARKET CALLS AT 8.30A.M;

HAPPY TRADING