Today, because of the big sell-off in the US and the Asian markets the Nifty opened about 200 points down and then kept trading in a small range thereafter. Despite the excessive weakness witnessed in the markets today, two of the stocks recommended yesterday managed to close in the green. Keep following the newsletter for trading ideas on a daily basis.
We have been suggesting for a number of days now that the Nifty should consolidate in a larger range between 4600 and 5600. Over the last few days a smaller range between 5600 and 5170 has also emerged. We should assume that this support at 5170 should hold. However, if the market does decide to prove us wrong, we have the next support near 5000. Short term positive signals should emerge near our support of 5170. We remain in an intermediate downtrend which will end only if the Nifty crosses the upper resistance line of 5600 (which will keep changing over time since it is an upward sloping trendline).
Bharti Airtel has been in a range for a few days now. It was a doji day today (marked with an up arrow). As suggested yesterday, dojis are usually formed either at short term market tops or short term market bottoms. This doji forming near the bottom end of the range suggests that it may move back to its upper end. The RSI finding support near 40 on 29th Jan (marked with a down arrow) gives us some confidence about its strength. This telecom stock will give us a buy signal if it crosses above its trendline near 960 but for now we will keep our eyes are set on a small target of 950-960. Keep a stop loss below 870 for this purpose. 
Nagarjuna Fertilizers, on its daily chart, has bounced back after trading near its support for sometime. The breakout in volumes is a positive for the stock. Depending on from where and to where the trendlines are drawn there seem to be two resistances near 70 and 75. One can buy it near the current market price of 52 and with a stop loss of 42, wait for a target of 70. 
Reliance Petroleum has been in a small range between 150 and 180 for the last 15-20 days on its end of day chart. This range may break soon. With a stop loss of 150, it is looking good for a target of between 210-220 if one buys it above 183. But buy only if it crosses 183. We don’t want to get stuck in a range for another month (in case it does not break out of it) or see it breaking it on the downward side. Avoid any positions in the first 15 minutes.Happy investing!!!
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