Why Day Trade Today - Recommendations For 23 Oct 2009

Why didn't I give any day trading recommendations on 22 Oct 2009? Yesterday I had given no recommendations for trading in stocks futures. In fact I had not posted anything and remained just a silent spectator throughout the day. For compulsive traders in the market it will seem to be almost a Herculean task - not do anything on a particular day. But then it is one of the qualities you will have to consciously develop if you want to survive in futures trading over the long run.

I still haven't answered my question.Why I didn't give recommendations to trade futures yesterday was because I was not certain. I didn't like the general sentiment developing across global markets. Whenever there is doubt creeping up in your mind just stay away from market. Let it do whatever it wants to do. The worst that will happen is that you will miss out a profitable trade or two. But then that is erring on the positive. At least this scenario cannot burn a hole in your pocket, nor take your peace of mind away. No sleepless night!

But today is different. The US markets have again taken the lead to show the direction and mind of the markets. Asian markets are pleasantly trading in green at 8.30AM IST and all seems to be fine up above.For day trading, today my recommendations are as under :-

1. Buy Centurytex Oct Fut at 495/500 for a target of 534. If you plan to keep it for tomorrow then this position should give 561 in couple of day's time.

2. Buy LITL Oct Fut at 513/518 for a target of 568. In case you hold the position till expiry then it should give you a target of 588 to 600.

3. Buy Nagarconst Oct Fut at 164/167 for a target of 171.If you plan to carry your position then you can see a target of 171/180 and finally 188/190 being achieved in couple of days.

4. Buy HDIL Oct Fut at 375/380 for a target of 400.

5. Buy Punjlloyd Oct Fut at 270/274 for a target of 286. If not today then you can keep it for tomorrow.

6. Buy DLF Oct Fut at 445/450 for a target of 465. You may plan to keep your position open also for a couple of days for a target of 500 plus

Day Trading Recommendations for 21 Oct 2009

For day trading today ie 21 Oct 09 the following are my recommended scrips :-

1. HDIL Oct Fut. Buy one lot (lot size 774) of HDIL Oct Fut at 375/377 and square off after taking a profit of Rs 10/15.
2. DLF Oct Fut. Buy one lot of DLF Oct Fut (lot size 800) at 447/449 and square off after taking a profit of Rs 15/20.
3. Nagarconst Oct Fut. Buy one lot of Nagarconst Oct Fut (lot size 2000) at 160/162 and cover it after taking a profit of Rs 4/5.
4. ICSA Oct Fut. Buy one lot of ICSA Oct Fut (lot size 2000) at 200/202 and take profit of Rs 5/6.
5. Punjlloyd Oct Fut. Buy one lot of Punjlloyd Oct Fut (lot size 1500) at 276/278 and take profit of Rs 8/10.

Recommended buy prices given above are little defensive in nature. They are not aggressive buy prices because there is need for taking caution today. US markets having closed in red and Asian markets at 9.25am 21 Oct 09 also in red, it is prudent to buy at little lower levels. It may so happen that these buy prices may not be met in trade today. But then that's fine. Day trading also means that on some days you need to sit out and watch the market.

I am yet not giving sell recommendations because as of now the market momentum is still up. So we will respect that, till it is confirmed that sell orders can be safe for day trading in futures. Until then it is better to stay on the buy side of bullish stocks, observing due precautions.

Day Trading Recommendations for 20 Oct 2009

In the last post I had given recommendations for entry into swing trading when Indian stock markets open today ie 20 Oct 2009. But if you cannot stomach the waiting game while holding position in Futures then the best answer for you is to day trade. So the swing trading recommendations given in the last post ( http://archana-archdeb.blogspot.com/2009/10/swing-trade-for-19th-october.html) can be utilized as day trading opportunities with small profit targets of 3 to 5%.

Apart from that, given below are some more scrips in which you may like to day trade today:-

LITL. Buy LITL Oct Fut at 550/552 for a target of 580/585. You may have to wait for one more trading session for this target.

DLF. Buy DLF Oct Fut at 448 and cover the position at 500. This target may take one more trading session to materialize.

Nagarconst. Buy Nagarconst Oct Fut at 164/166 and cover your position at 174/176. In case you are unable to square off position today then hold for just one more trading session as BTST position.

PORTFOLIO ANALYSIS - SAMPLE 7 (J P SHARMA)

Presently we are going to do an interesting portfolio analysis of Mr J P Sharma where the choice of companies is rather fascinating. There is immense scope in this portfolio for impressive gains over the next one year. Shall we begin then?

Unitech
Holding 500 shares at an average price of Rs 83. Closing price on 23 Sep 09 was 109
6 mnth tgt- 160, 1yr tgt- 200
Since you are sitting on profit and market correction is expected soon, you may like to sell 50% of your holding at about 120 and release your capital. After the correction you may like to pick up Unitech at 75/80 level. Then hold your position for one year's target of 200.

Suzlon
Holding 500 shares at an average price of Rs 96. Closing price on 23 Sep 09 was 94.6
6 mnth tgt- 180, 1yr tgt- 320
Suzlon should be bought at every dip. So be ready to add to your holding in small packets till level of 80. Such accumulation in the scrip will pay you handsome dividends in one year. Sell your complete position once the scrip reaches the price target of Rs 320.

DLF
Holding 90 shares at an average price of Rs 343. Closing price on 23 Sep 09 was 423.6
6 mnth tgt- 700, 1yr tgt- 900
DLF may correct till 300 and may on extreme conditions go down as much as 250. You can keep a stop loss of 385 and keep holding your position. You may then re-enter the scrip at 300 for the price target of 900 in one year or so.

Bhartiartl
Holding 50 shares at an average price of Rs 612. Closing price on 23 Sep 09 was 413.5
6 mnth tgt- 550, 1yr tgt- 750
Hold your position in this scrip and plan to add to your position during the correction. Fall below 390 can take the scrip to 340/350. Buy 50 additional shares at 350. Hold the scrip for one year's target of 750.

Mundra Port
Holding 50 shares at an average price of Rs 610. Closing price on 23 Sep 09 was 537.5
6 mnth tgt- 800, 1yr tgt- 1100
Mundra port can slide down to 400 if it closes below 520. Double your holding if the scrip touches 400. Hold your position for one year's target of 1100.

RNRL
Holding 200 shares at an average price of Rs 140. Closing price on 23 Sep 09 was 88.15
6 mnth tgt- 145, 1yr tgt- 190, 2 yr tgt- 250
RNRL can correct to 70 once it closes below 83. Keep accumulating the scrip from 70 downwards till 60. Hold your position till one year's target of 190.

Alok Industries
Holding 1000 shares at an average price of Rs 22.45. Closing price on 23 Sep 09 was 22.7
6 mnth tgt- 33, 1yr tgt- 42
Alok Industries can fall to 15 level but you should keep holding your position. You should start accumulating at dips right from 19 till 15. You can then sell your positions comfortably at one year's target of 42.

SBI
Holding 60 shares at an average price of Rs 343. Closing price on 23 Sep 09 was 2142
6 mnth tgt- 2300, 1yr tgt- 3200
You have SBI at IPO price so just keep holding it till its one year target of 3200.

GMR Infra
Holding 100 shares at an average price of Rs 143. Closing price on 23 Sep 09 was 140.7
6 mnth tgt- 200, 1yr tgt- 260
GMR Infra may correct to 110. You may start building up your position from 110 downwards. Hold the scrip for one year's target of 260.

RPL
Holding 160 shares at an average price of Rs 146. Closing price on 23 Sep 09 was 130.4
6 mnth tgt- 200, 1yr tgt- 235, 2 yr tgt 290
RPL can move down to 110 during the coming market correction. But you should only think of adding to your present position. Sell only when the scrip touches 290.

NTPC
Holding 260 shares at an average price of Rs 198. Closing price on 23 Sep 09 was 208.8
1yr tgt- 300
NTPC looks quite dicey below 200. You have a choice to move out of this scrip at current market price and re-enter at 170. It may go down to even 150 level, but over one year it will surely touch 300.

PORTFOLIO ANALYSIS - SAMPLE 4 ( S S HUSSAIN )

Here in this portfolio analysis we have a case of Mr Hussain who wants a three year horizon for his portfolio. However my recommendation to him will be to watch for one year targets and take profit there. After that he will have plenty of opportunity to pick up the shares again at a lower price since those targets are at supply zones. Lets begin the exercise.

DLF
Holding134 shares at an average price of Rs 358. Closing price on 22 Sep 09 was 430.1
6 mnth tgt- 700, 1 yr tgt- 900
You should keep holding the share for a target of 900. It may also trade at 1200 around two years down the line.

GMR Infra
Holding 287 shares at an average price of 76. Closing price on 22 Sep 09 was 142.8
6 mnth tgt- 200, 1yr tgt 260
You have a profitable position to hold. At the most GMR may come down to 110 in near future expected correction. Hold till target of 260 is achieved.

BPL
Holding1000 shares at an average price of Rs 24.15. Closing price on 22 Sep 09 was 36.85
6 mnth tgt- 45, 1 yr tgt- 65
Currently BPL may come down to the zone of 25 to 30. Since you will not be in any loss, therefore keep holding till target of 65.

BHEL
Holding 14 shares at an average price of Rs 1504. Closing price on 22 Sep 09 was Rs 2285.
6 mnth tgt- 2800, 1 yr tgt- 3900.
BHEL may come down to 1700 level in the foreseeable correction. It will be very weak if it closes below 2200. However you do not have to worry since your position will not give you any loss even if the correction does take place. Hence keep on holding it till 1 year's target of 3900.

GSPL
Holding 590 shares at an average price of Rs 59. Closing price on 22 Sep 09 was Rs 79.4
6 mnth tgt- 95, 1 yr tgt- 110
GSPL may correct to 50 level in near term. You may like to add to your position if it does come down to 50. What ever be the case, exit position only at 1 year's target of 110.

Rcom
Holding 90 shares at an average price of Rs 359. Closing price on 22 Sep 09 was 307.5
6 mnth tgt- 500, 1 yr tgt- 600, 2 yr tgt- 810
Rcom may come down to 250 level if the markets correct now, of which there is high probability. You can plan to add to your position at 260 and off load your complete position at two year's target of 810.

PORTFOLIO ANALYSIS - SAMPLE 3 ( X-8 )

In this series of Portfolio Analysis for Mr X , we have come to the end of the road with this tranche. Today we have analysed some assorted stocks which covers the complete portfolio of Mr X. I hope you have enjoyed reading the complete portfolio of Mr X as much as I have, analysing it. Here's last of the wilds for your eyes only!!

SESA GOA

Holding 100 shares at average price of 206. Closing price on 11 Sep 09 was 242.1.

6 mnth tgt - 300; 1 yr tgt - 470

Sesagoa seems to be in belligerent mood and is constantly trying to notch higher scales. But it has moved up too fast too soon. It is likely to touch level of 155. So take your profit now at current level and wait for correction. Pick up the scrip again at 160 and wait for a year to reap benefits from the scrip at 470.

BEL

Holding 10 shares at an average price of 1202. Closing price on 11 Sep 09 was 1371.

6 mnth tgt - 1800; 1 yr tgt - 2500

BEL will fall to sub 1300 initially and maybe jump to 1400. But that will be short lived and you may see the scrip trading at 1000 level in short term. Be conservative and take home your profit at current level. Re-enter the scrip at 1000 level and wait for one year to sell the same at 2500 level.

DLF

Holding 50 shares at average price of 525. Closing price on 11 Sep 09 was 398.6

6 mnth tgt - 700; 1 yr tgt - 900

DLF may correct from here but do not be disheartened. Hold the scrip for one year target of 900. If you can keep the share for a longer term of two years then you can see the target of 1200 also.

OMAXE

Holding 60 shares at average price of 310. Closing price on 11 Sep 09 was 123.2

6 mnth tgt - 180; 1 yr tgt - 240

Omaxe is again a hold for you. But you should add shares in your portfolio at 110 or even at current market price. You should sell this bundle of 120 shares at its one year's target of 240.

PARSVNATH

Holding 60 shares at average price of 300. Closing price on 11 Sep 09 was 119.2

6 mnth tgt - 195; 1 yr tgt - 240

Parsvnath may correct to 80 so keep adding this scrip in small packets till level of 80. Then hold the scrip for its one year's target of 240.

MUNDRA PORT

Holding 45 shares at average price of 440. Closing price on 11 Sep 09 was 534.

6 mnth tgt - 800; 1 yr tgt - 1100

Mundra Port may correct to 400 level. So book your profit now and again re-enter at 475 and keep adding to your position till 400. Then you can hold your position till target of 1100 is achieved.

ONGC

Holding 52 shares at average price of 850. Closing price on 11 Sep 09 was 1177.

6 mnth tgt - 1350; 1 yr tgt - 1900

ONGC is likely to correct to 975. So it will be best to book your profit now. Re-enter at 1000 level and hold till the target of 1900.

THERMAX

Holding 40 shares at average price of 598. Closing price on 11 Sep 09 was 478.1.

6mnth tgt - 650; 1 yr tgt - 890

Thermax will correct to 350 level. But do not worry. Just add 40 shares at 350 level for target of 890.

VOLTAMP

Holding 20 shares at average price of 690. Closing price on 11 Sep 09 was 840.

6 mnth tgt - 1150; 1 yr tgt - 1300

Voltamp is moving sideways in a tight band between 700 and 900. With market expected to correct in near future it would be advisable to book profit at current level. You can re-enter the scrip above 900 for a target of 1100. Otherwise wait for correction and enter the scrip at 600 level for a target of 1300.

VOLTAS

Holding 100 shares at average price of 122. Closed at 147 on 11 Sep 09.

6 mnth tgt - 195; 1 yr tgt - 300

Voltas is looking for excuse to fall in near term and hence would qualify for sell. It may fall to 90 level and so book your profit at current level. Pick up the stock again at around 90 for a target of 195 at least.

PORTFOLIO ANALYSIS - SAMPLE 2(R ROHMETRA)

In this series of Portfolio Analysis, now we shall be taking up Portfolio of Mr R Rohmetra who wants a long term view of 3/4 years. Since the definition of long term has somewhat changed I am offering him targets only up to two years. In that also I am not recommending some of the scrips for a two-year view for various reasons like uncertainty, correction phase expected to drag it lower than its 1 year target, etc etc. Similarly I have deliberately refrained from giving one month's target to some of the scrips because these scrips may get churned through some rough correction in near future. So here we go!

ICICI Bank
Holding 20 shares at average price of 1435. Closing price on 28 Aug 09 was 763.6.
6 mnth tgt - 950; 1 yr tgt - 1300; 2 yr tgt - 1650
ICICI Bank has still not corrected to 50% of its run up from Mar 2009. In fact it has not even corrected 38.2%. It has also yet to cover the gap created at 579. This means that in short term this scrip might correct to 535. Hold the scrip for its one year target of 1300 and add 40 shares more in case it falls to 535.

Relcapital
Holding 09 shares at an average price of 1803. Closing price on 26 Aug 09 was 872.5.
6 mnth tgt - 1420; 1 yr tgt - 2100; 2 yr tgt - 2900
Reliance Capital has completed its 38.2% correction of 1st phase of Bull run but has yet to do 50% retracement. It also has not covered a gap it created at 599. However all this does not disqualify it for continuing its march upwards in 2nd phase of Bull run. It only tells us that there is scope for the scrip to correct to 600 in short term. If it does correct to 600 level then buy 18 more shares and hold till 1 yr tgt of 2100. In case it does not correct from here then just keep on holding till its one year target.

State Bank of India
Holding 25 shares at average price of 1359. Closing price on 28 Aug 09 was 1782.
6 mnth tgt - 2050; 1 yr tgt - 2500; 2yr tgt - 3200
SBIN has corrected 38.2% but not corrected 50%. It has also not yet covered its gap at 1327. Hence in short term there is a chance that the scrip may come down to 1300. Just hold for at least 1 year's target. You may consider doubling your position at 1300 level.

DLF
Holding 97 shares at average price of 285. Closing price on 28 Aug 09 was 413.
1 mnth tgt - 550; 6 mnth tgt - 740; 1 yr tgt - 900; 2 yr tgt - 1200
DLF has completed 50% correction of its 1st phase of Bull run and is cruising in 2nd phase of Bull run. Hold this scrip till it achieves its 1 month's target of 550. After that you may consider liquidating half your holding and buying back those many shares after a substantial correction, this time for 6 month's target. You may repeat this process till you reach two year's target for the scrip.

L&T
Holding 15 shares at average price of 1316. Closing price on 28 Aug 09 was 1618.
6 mnth tgt - 1800; 1 yr tgt - 2200; 2 yr tgt - 2850
L&T has not completed 50% or even 38.2%retracement of 1st leg of Bull run. It needs to cover its gap at 1000. So in short term there is an atmosphere of uncertainty about the stock. However if the scrip reaches its 6 mnth target of 1800 in a month or so, then do sell the stock and book profit. Pick it up again after a strong dip and hold till its one year target.

Power Grid
Holding 1000 shares at average price of 138. Closing price on 28 Aug 09 was 107.6.
6 mnth tgt - 160; 1 yr tgt - 215; 2 yr tgt - 260
Power Grid has corrected 38.2% but not 50%. It may yet correct till 91. If it does come down to 91 then you may pick up 500 more shares and hold till its 1 year target of 215.

PTC
Holding 49 shares at average price of 130. Closing price on 28 Aug 09 was 95.25.
1 mnth tgt - 120; 6 mnth tgt - 160; 1 yr tgt - 200
PTC has technically started breaking out and will be very interesting to watch in the coming month. Hence you can contemplate buying 50 more shares at present level for one month's target. However your original holding of 49 shares should be held till the scrip reaches its one year target of 200.

Tata Power
Holding 09 shares at average price of 1111. Closing price on 28 Aug 09 was 1343.
1 mnth tgt - 1500; 6 mnth tgt - 1700; 1 yr tgt - 2300
Tata Power has not done even 38.2% retracement. However it looks eager to reach its target of 1500. You may like to book your profit at 1500 and then re-enter after it corrects itself in real earnest. After re-entry you should hold the scrip for its 6 month's target of 1700, book profit and employ the same strategy for its 1 year target of 2300.

Reliance
Holding 75 shares at average price of 1309. Closing price on 28 Aug 09 was 2074.
1 mnth tgt - 2360; 6mnth tgt - 2900; 1 yr tgt - 4000
Reliance has completed its 50% correction and should be held at least till 2360. After that you may start trading half your holding to maximise your profits till it reaches its 1 year target.

RNRL
Holding 683 shares at average price of 96. Closing price on 28 Aug 09 was 85.85.
1mnth tgt - 110; 6 mnth tgt - 145; 1 yr tgt - 190; 2 yr tgt - 250
RNRL has already witnessed 50% correction and is well poised to embark on the 2nd leg of its northwards journey. Hold RNRL for its two years' target.

RPL
Holding 1800 shares at average price of 145. RPL closed at 127.9 on 28 Aug 09.
1 mnth tgt - 160; 6 mnth tgt - 200; 1 yr tgt - 235; 2 yr tgt - 290
RPL has also completed 50% retracement and should be held till 290.

RCOM
Holding 40 shares at average price of 766. Rcom closed at 265.6 on 28 Aug 09.
1 mnth tgt - 350; 6 mnth tgt - 500; 1 yr tgt - 600; 2 yr tgt - 810
Rcom has done 50% retracement of its first leg of Bull run. So you may buy 40 shares at current level and sell at its one month's target of 350. In this way you can bring down the Buy Price of your original holding. You can choose to employ this strategy many times in this scrip's journey towards its designated targets. However sell your original holding at 810.