Tata Steel Foretells a Bearish Future

Around June 11, 2010, it was noticed that Tata Steel was indicating that the future for metals was going to be very weak. A head and shoulders pattern on a descending neckline provided all the clues that something negative was in place for iron ore companies. At the time, it was the 40 percent mining tax that Australia slapped on mining companies owning mines in Australia, a move that was softened later by the new Australian Prime Minister.

Today when we see Tata Steel, it is clear that the right shoulder has been formed, unless the high around 550 is taken out again. Yet nothing is safe for Tata Steel unless 675 is knocked out which would make the right shoulder higher than the left and thus negate the H&S pattern.

Hot Stocks for April 20 - Inder Bhatia

BUY HEROHONDA above 1110 TGT 1137>1150 Stoploss 1092.

Sell TATASTEEL below 256 TGT 246>237 Stoploss 263.

Nifty can Dance Saala...to our Tune

Pardon the word in the title, but after all, every kid in India is singing the song that inspires the title. I find it amazing that Nifty is dancing to the few lines drawn on my post July 7, and following the upper and lower levels. The same chart is reproduced again with updated data until July 30.

The Nifty seems to be well on its way to 4740-4750 in August.

Drawing lines on a chart is child's play, ain't it?

Watch Tata Steel in August. It can be bought on any dips with a stop below 575 for a target near 700.

Nifty Update for May 29 - Inder Bhatia

The Indian market closed in the green with handsome gains. The markets saw smart recovery towards the final trading session. In the forthcoming sessions, if Nifty crosses 4940, we could see more upside toward 5007-5032. However, on the lower side, 4883-4840 will act as strong support. Banking and IT sector can seen more.


HOT STOCK: TATASTEEL

Double Whammy for Bears - Abhijit Phatak

A bounce from the 200-HMA typically gives a 10-15 percent run, which gives a Nifty target in the region of 5300+. Added to this pattern is the highly bullish W pattern which also gives a fairly smooth run. So, what do we have then: A double WH(200 hma) ammy for Bears?

Climb a WALL of WORRY and slide down the SLOPE of HOPE. This is precisely what stock markets around the world, including our very own, have been doi ng. The first warning signal is when this 'worry' turns in to belief that the bull run is here to stay. This is when the first strong hands start getting out, and also the strong bears start going short. Before the poor retail investors realize, the climb has reached the end and the slide has already started.

At this point, 'hope' creeps in to the minds of the poor retail investors, who start hoping the market would begin climbing again. Alas, the market has no mercy and the poor retail guys have no choice but to convert their 'hope' in to 'prayers' and BTST (buy-today-sell-tomorrow)'s into long-term deliveries.

However, for now, as long as there exists worry all around us, enjoy the ride. There will be enough indications on charts which will give a hint of change in direction, whenever it happens. There is no point in 'anticipating' a change in trend and taking action in advance.

Of course, there is no pattern that is without a chance of failure, hence, it is imperative that traders have a proper stop-loss in place. Proper is the key word here, for we have many traders who always complain that their stop-loss gets triggered and the stock moves up, which only implies, was not a 'proper' stop loss.

Some trading ideas for next week, which is shortened to only 4 days; one of which is already shown on the chart. Other trading ideas are IFCI, RPL, RPower, Reliance, Tatasteel, Ispat and many more.

Enjoy the ride, with your safety belt (stop loss) in place.