Day Trading - Status of 23rd Oct Positions

On 23 Oct 2009 before the Indian markets opened, I had given buy recommendations for six stocks futures. for quick reference visit this link here : http://archana-archdeb.blogspot.com/2009/10/why-day-trade-today-recommendations-for.html

Now let us run a cross check on the status of these positions. Out of the six recommendations one buy price of DLF Oct Fut was not met in trade. For rest of the five positions here is my outlook for each position:-

1. Centurytex Oct Fut. This position had an intra-day low of 488.35 and closed at 493.2. If you have bought around 495 you should be holding your position for next trading sessions. In worst case scenario it will give you 498.5 where you may exit without any injury. But if you are a little brave hearted then you should keep the position for a target of 550 till expiry. Maximum downside risk is 467. This I am advocating because this scrip is still maintaining its swing, and has also completed two long term bullish patterns, viz 'Cup and Handle' and 'Rounding Bottom'. Its actual worth is 920/950 in one year's time.
2. LITL Oct Fut. This position had an intra-day low of 510.3 and closed at 513.75. If you have bought around 513 then you should be holding this position for next trading sessions. You will get an opportunity to exit between 533 and 541. Its actual potential though is 620 in short term.
3. Nagarconst Oct Fut. The position had an intra-day low of 156.95 and closed at 159.2. If you have bought around 164 then you should be holding the position till minimum target of 170. Its actual worth is 220/240 in medium term of about six months because it has completed the long term strong bullish pattern of 'Rounding Bottom'. However before surging to 240 level it may retest the levels between 120 and 140.
4. HDIL Oct Fut. The position made an intra-day low of 370.7 before closing at 375.85. If you have bought around 375 then you should be holding the position till minimum 390. The scrip is worth 500/515 in medium term of six months.
5. Punjlloyd Oct Fut. The position touched an intra-day low of 255.2 and finally closed at 259.55. If you have bought at around 270 then you should be looking to exit at 277.

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.

NTPC Stake Sale - Trading action

For entering trade today in stocks futures I had given recommendations on 19th Oct, both for day trading and swing trading. For easy reference please check these two links -

http://archana-archdeb.blogspot.com/2009/10/swing-trade-for-19th-october.html and http://archana-archdeb.blogspot.com/2009/10/day-trading-recommendations-for-19-oct.html

However you may also add NTPC to the list because of the news flow yesterday.

NTPC has been accepted by Indian Govt for disinvestment. The cabinet has agreed for 5% stake sale of this state owned thermal power generation company, the largest in India valued at around Rs 1.7 trillion. Presently Govt owns 89.5% shares in the company, rest being held by the public. In 2008-09 the company had a profit of about Rs 78,270 million to a revenue of about Rs 4,21,820 million. The sale of shares of NTPC could net Rs 86,000 million to the Govt. This sure is sentiment enhancing news and one that could propel the stock northwards in today's trade. So my recommendation would read as follows :-

NTPC OCT Fut. Buy NTPC Oct Fut at 213/214 for day trading. You should target 220 as the initial sell point. However break above 220 should see the scrip sailing to 230 in 2/3 trading sessions.

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.