STOCKS FOR THE WEEK 28JUL TO 01AUG

Before we dwell further this week, it would be necessary to explain why we rally only around these three stocks all the time. There are various reasons but foremost being that they are the movers and shakers of the market. No worry of volume or liquidity. They are among the largest and the best businesses. One should not hanker after every stock that is in news. Have no heartburn if you couldn’t jump that bandwagon because the markets are full of opportunities elsewhere as well.

This is not to say that other businesses are not successful but from trading point of view, select only the bellwether stocks. The reason being that too many stocks would take too much of a time to keep track of data and information to trade intelligently. Besides that, one also needs to study index movement. So, overall time needed for that would be beyond a scope of a trader. Even if you would like to select stocks other than ours, remember always to stick to them and not fret after each and every stock every now and then. We also advise not to trade everyday. Draw a plan on paper according to levels given by us. We arrive at these facts and figures after pooling down of considerable data.

Suppose, if a reversal point is mentioned then initiate trade only when reversal is confirmed because a signal may or may not come even at the end of the week. Again, if you are asked to initiate a short or long position on a breach of a particular point then do not act contrary. The levels given here are on closing basis and you should not speculate in anticipation as markets can reverse from the hell within minutes. Moreover, these levels are not achievable in day trading in normal circumstances.

We shall keep you updated whenever necessary. Until then!

RELIANCE(2147)

We do not envisage much upside in medium term because it has reversed from 2300 zone, the formidable resistance zone for this stock. Rather, it could strut down towards its fragile support in 2080-2100 zone. A close below 2080 would turn it negative for near term and it would be headed towards 1900. So, go short on a close below 2080. It can turn positive only on breach of 2350.

INFOSYS (1551)

As mentioned in our last week outlook, it did not participate very enthusiastically with the uptrend. The last week’s recommendation still holds i.e., sell on a close below 1500 for targets of 1400 and then 1300. However, it could remain sideways also this week if markets start moving up. But has resistance at 1700.

SBI (1444)

This is also a candidate for shorting if closes below 1500. Then it will have targets of 1400 and even 1300. But it is also a candidate for long term pick until holding 1000. Pick between 1000-1200 if there is any knee jerk reaction. Resistance zone is between 1500-1600.

Good Luck!