TRADING TIPS: 27OCT TO 31OCT

SHORT TERM TRADERS ARE ADVISED TO GO FOR OPTIONS ONLY, IF THEY MUST!!! OTHERWISE, STAY AWAY FROM FUTURES UNTIL VOLATILITY SUBSIDES.

RELIANCE(1019):
Got beaten black and blue last week as expected and moved down below its crucial support at 1248. Now it should consolidate in the range between 800 and 1000 for a few weeks or more, depending upon the sentiment of the markets.
In case of a rise from present levels it faces resistances at 1207 and 1425. On the other hand, on a further decline it has supports at 988, 941 and 925.
It is more likely that it may hold above 800 in case of further deterioration. Therefore, long term accumulation in this stock is expected in the band between 800-1000, only if falls further.

SBIN(State bank of India) 1165
This stock also couldn't hold its crucial support at 1250 and made a low at 1100.
Favoured view is that it could remain in a range of 1000 to 1500 for quite some time now.
Expect supports at 1000, 965 and then 900 in case of a further decline. Below here, this stock would also attract long term accumulation with stop loss at 684.

INFOSYSTCH(1246)
It did not budge much amid this mayhem and closed the week with gains.
It is also likely to remain in a range of 1100 and 1425 for a few more weeks. Yet a close above 1425 could take it to 1500 levels again. Immediate support is at 1040 but longs could hold with a stop at 1100 on closing basis.

In view of a three sessions' week, there is no buy or sell call specifically. However, Diwali being the traditional buying day for retail investors, there would be a special session of one hour only on Tuesday, the 28th October. It would be from 6.15 p.m. to 7.15 p.m.
Therefore, one could look for an opportunity of buying the above mentioned bellwether stocks for muhurat trading.
These stocks have been beaten down to attractive levels for long term investing. But only cash buying for long term is advised for muhurat sake only. Other large trade setups could wait until markets stabilize.