These are some of the trading rules which are universally valid for stock trading. Take a print out and nail it on your desk.
#Never risk more than 10% of your trading capital in a single trade. #Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.) # Never do overtrading. # Never let a profit run into a loss. # Don't enter a trade if you are unsure of the trend. # When in doubt, get out, and don't get in when in doubt. # Only trade active markets. # Distribute your risks equally among different markets. # Never limit your orders. Trade at the markets. # Extra monies from successful trades should be placed in a separate account. # Never trade to scalp a profit. # Never average a loss. # Never get out of the market because you have lost patience, or get in because you are anxiously waiting. # Avoid taking small profits and large losses. # Never cancel a stop loss after you have placed it. # Avoid getting in and out of the market too soon. # Be willing to make money from both sides of the market. # Never buy or sell just because the price is low or high. # Never hedge a losing position. # Never change your position without a good reason. # Avoid trading after long periods of success or failure. # Don't try to guess tops or bottoms. # Don't follow a blind man's advice. # Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake. # When you lose don't blame it on luck.
MARKET UPDATE GREECE BAILOUT PASSED BUT EUROPE AND US FUTURE IS FLAT TO NEGATIVE OUR MARKET WILL SEE SELLING PRESSURE AT 5600 SO TRADE LIGHT STAY LIGHT
MARKET TODAY WILL BE CHOPPY WITH EYE ON BRUSSELS Euro zone finance ministers are meeting currently at Brussels to figure out the 2nd bailout package to Greece which will save it from default in March. But the million dollar question is will Greece stick to its strict tightening measure amidst protest on street. Any disorderly outcome on Greece will be painful for the Global economy. So keep your finger crossed. Back home FIIs’ are on buying spree invested 25000 crore in 2012 lifting the Nifty by 1000 points. But with rupee after consolidating at 49 showing signs of negative move. We will good news on inflation front with food production at highest level. The most important of all UP election results will affect this Government’s action. Any slippage on Governance front will affect growth of economy as a whole. But the silver lining is that midcaps are on a roll. Rest is self explanatory. US Markets ended flat. Europe ended positive. Asian markets have opened directionless. Expect Indian Markets to open flat to negative. Technically, 5600-5640 will remain crucial hurdle and is likely to attract some profit booking. Breach of 5640 by NIFTY will trigger fresh buying and heavy short covering. Consolidation above 5600 mark should be noted as a positive development for near term market outlook. Key support for the today remains at 5580/5550 levels with next support still lower at 5500 levels. Hurdle is seen around same range of 5640-5680 on higher side. Breach above or below above mentioned range may provide fresh breakout. As we advised earlier do not waste your energy in predicting the market rather zeroed in on small and midcaps as fortune can be made in times like this when most of the market participants are in indecisive mood. Enjoy trading.
Greece's coalition parties must tell the European Union on Monday whether they accept the painful terms of a new bailout deal to avoid a messy default that could threaten the country's future in the euro zone.
Political leaders must agree on unresolved problems - including labor market change and shoring up domestic banks - to secure the 130 billion euro ($170 billion) rescue Greece needs by March or risk inflaming tempers in the European Union over what is seen as its dithering on implementing reforms.
A socialist party spokesman said leaders of the three coalition parties - who may face anger in parliamentary polls as soon as April - must respond by noon (1000 GMT) on Monday.
A meeting of political leaders would follow later in the day.
Technocrat Prime Minister Lucas Papademos said after five hours of talks on Sunday that party chiefs had agreed measures including wage cuts and other reforms as part of spending cuts worth 1.5% of gross domestic product.
But PASOK spokesman Panos Beglitis said a number of major issues demanded by the "Troika", representing Greece's EU, European Central Bank and International Monetary Fund lenders, remained unresolved.
Huge Short covering on A/c of Aggressive FII buying, further strengthening of Rupee till 48.6 levels & Stable Q3 numbers have led the index to hit Fresh 3 month highs & close around it. While front line indices closed 2% positive for the week, mid-cap & small-cap indices closed with more than 3% gain for the week with few stocks even gaining more than20 to 30% for the week.
Highest gains were recorded in Realty index which rose nearly 5% while IT, Auto & Metal Index closed with gains between 3-4% for the week. Lowest gain was recorded in Oil & Gas Index with a rise of only 1.5% with ONGC not participating in the rally inline with other frontline stocks.
During the week, An important ruling came from the Supreme court w.r.t 2G scam cancelling all the 122 licenses issued post 2008. This move could impact the Telecom, Banking as well as IT sector. Banks could be impacted on account of its loan exposures to the telecom companies & IT companies which provide BPO services to these telecom companies whose licenses have been cancelled.
Forthcoming State Elections could also have an impact on the market sentiment in the near future.
Also it would be interesting to see whether FII's will continue to pump in Funds with the same intensity as they are from beginning of the year 2012 given that the valuations are'nt cheap anymore & strengthening of rupee upto sub 48 zone.
Market participants would now keep an eye on upcoming Q3 results i.e HUL, Bharti Airtel, ONGC, Power Grid, Tech Mahindra, Tata Steel, Hindalco, ACC, HPCL, Tata Power, BPCL, etc & hence stock-specific actions may be witnessed.
IIP data to be announced on 10th Feb would be an important trigger.
Nifty Futures having managed to cross 200 DMA & close above 5280 Spot levels indicate long-term bullish breakout with targets of 5635-5800. Having said this, it's very important to keep an eye on the fact that we are very close to the resistance levels & hence an immediate correction before a further upmove cannot be ruled out.
Avoid Entering into fresh long positions at current levels with profit booking expected at higher levels on A/c of large-caps looking exhausted & most technical oscillators reaching overbought zone.
Going Forward,
Nifty Futures may face stiff resistance around 5435-5455 as it is 50% retracement of entire fall from 6349 to 4538. i.e. (50% of (6349 - 4538) = 905 pts & 4538 + 905 = 5443).
If Nifty Futures could not cross & sustain above mentioned resistance zone of 5435-5455, then this current upmove could halt temporarily and Markets could once again retest support zone of 5212-5230 & Nifty Futures will be in a trading range 5212-5455.
Only on decisive cross-over of 5455 with volumes, this current rally could get further momentum & can go all the way upto 5590/5650.