Sell Sun Pharma as it shows fatigue signs - 16th July 2013

1) Sun Pharma is India's leading Pharma company in India. The company enjoys the leadership position and demand highest valuations among Pharma stock fraternity.

Price Volume Analysis

2) The stock declined to 970 on June 16th and rebounded since then to close today at 1110 Rs (+14%) without any correction. RSI at around 72 indicates over bought situation (Chart 1)

3) Today though stock has shown fatigues. After making the highs of 1125 Rs today, the stock steadily declined to close at Rs. 1110.

4) Volume has too declined by 23% and Delivery volumes by 30% which also points to consolidation or some correction in the coming days.

5) On the technical charts, the stock shows some support around 1090 Rs and then 1068 Rs.

6) In the midst of it, we may Sell the stock at around 1105-1115 Rs with stop-loss around 1130 and target levels of 1090 and 1068 Rs where support level exists.

7) Derivatives traders can buy 1080 Put and Sell 1060 Put which gives risk to reward ratio of 1:3. As per today's closing price, one may earn maximum profit of Rs. 15 per share and maximum loss exists at 5 Rs per share.

Sell Hindalco as it reaches resistance zone - 11th July 2013

1) Hindalco is India's leading Metals company in India and the flag bearer of Birla group.

2) Today, the metal stocks including Hindalco have gained, as Fed Chairman gave a positive speech aiding stimulus for the next few months.

3) Though technically, the stock has reached a resistance zone where it is likely to face some resistance (See Chart below)

4) Hence, we are betting on this resistance zone to sell the stock on rise tomorrow. Hindalco can be sold around 103.5 Rs with stop-loss at 105.5 and target levels of 101 and 98.

Sell ONGC as derivatives indicate tremendous short positions - 11 July 2013

1) ONGC is India's leading Oil Exploration company and one of govt's "Maha-ratna" company.

Technical Analysis

2) It has corrected steeply by 10% in the last 10 days and has now trading below the short term (5 Day EMA) and long term (34 day EMA).

3) The stock has reached a minor support level from where it is expected to rebound by 2-3%. If it again resumes its downward journey, then we may see levels of 286 Rs. in this stock.

Derivative Analysis

4) The stock has added 8% in Open Interest today and is now standing at maximum Open Interest for the last one month.

5) It has added 6.7 Lacs shares in Open Interest in July futures. Besides, 1.4 Lacs shares have been added in 300 Rs call, 1.9 Lacs in 310 Rs call, 1.24 Lacs in 300 Rs. call. The premium for all three Options have declined by around 30% which indicates the levels of bearishness existing in the counter.

Considering all these factors, we may derive that we may sell ONGC on every rise. If the stock rebounds from the existing support of 296 and reaches 302-305, we may sell it for possible target levels of 286. On the up side, the stop-loss can be maintained around 312.

Buy Exide as volume, Open Interest and Price increases - 08th July 2013

1) Exide Industries is RPG group company, based out of Calcutta. The company is the leading manufacturer of Auto and Industrial batteries.

Price & Volume Analysis

2) On Friday, the trading volume in the stock has increased by 84%. It is also up by 58% from one week average. The increase in volumes have backed by increase in stock price by 1.5% which is a positive development for the stock.

3) Delivery Volumes have also increased by 85% which further make this rise in stock price more worth while.

Derivative Analysis

4) Open Interest in the stock has increased by 9.5%. 1.6 Lacs new shares have been added in Open Interest. Total Open Interest in the stock stands at 19 Lacs new shares.

Chart Analysis

5) On the charts, there exists a strong support around 121. It has bounced back three times from 20th June and has broken the intermediate top made post that. The support for a buy position can be placed below that.

6) On the upside, the first level of resistance comes at 126 where previous support levels exist. Once this level is breached, the next level of resistance arrives at 131 where intermediate top exists.

Trading Strategy

7) Most indicators above indicates short term uptrend in the coming days. One may buy Exide around 123 with stop-loss at 120 and target levels of 126 and 131.