Mitesh Thacker's top five trading strategies for coming week

By Mitesh Thacker



The Nifty opened the week on a positive note and registered an intra-week low of 5975.55 levels. With Thursday's up move, the index witnessed a weekly high of 6133.75 levels. Eventually, it closed at 5985.95, with a marginal gain of 2.40 points for the week ended May 31.

During the week, once again the Nifty found resistance from 6130 levels and closed below the psychological level of 6000.

On the daily chart the index is forming a head and shoulder pattern. Traders should note that it is a strong distribution pattern, indicating intermediate trend reversal.

Going forward, the Nifty has immediate support in the range of 5950 - 5910 levels. Trading below 5900, the Nifty is likely to fill up the rising gap witnessed on the 25th April 2013, followed by 5770 levels. On the upside the Nifty has resistance at 6050 / 6080 / 6130 levels.



Here is a list of top five trading strategies for the coming week:
Punjab National Bank: SELL for a target of Rs 734, keeping stop loss at Rs 782.20





The price of PNB has been trading in the range of Rs 920 -- 682 for the past couple of months. This sideways consolidation is taking the shape of a head and shoulder pattern. With Friday's down move, the stock has registered breakdown from its upward sloping trend line, indicating that this move could take the shape of a right shoulder pattern.

The stock has taken resistance from its cluster of moving averages. The momentum indicator has also registered breakdown from a head and shoulder pattern and rolling downward.

Traders can look to sell now and again on rise up to Rs 766 -- 772 with a stop loss placed above Rs 782.20 levels for the targets of Rs 734 /710 levels.
Reliance Communications Ltd: SELL for a target of Rs 102, keeping a stop loss at Rs 109.60





The share price of RCOM has witnessed a sharp rally from the lows of Rs 50 to the highs of Rs 117.40 levels. Traders should note that the stock has doubled in a time span of just two months. After registering highs of Rs 117.40, the stock has been trading sideways.

This sideways momentum is taking the shape of a head and shoulder pattern. The stock has also closed near its lower Bollinger band. The stock is trading below its short term moving averages. The momentum indicators are declining.

Traders can create short position now with a stop placed above Rs 109.60 levels, for the targets of Rs 102 / 98 levels.
Infosys Ltd: BUY with a target of Rs 2486, keeping a stop loss at Rs 2358.80





The share price of Infosys has been trading sideways after witnessing a sharp fall from the highs of Rs 2935.60 to the lows of Rs 2186 levels. With Friday's up move, the stock seems to have registered a breakout from its consolidation range.

The stock is now trading above its cluster of moving averages and managed to close above its upper end of Bollinger band, on the back of rising volumes. Trading above Rs 2435, the stock is likely to accelerate the upward momentum. The momentum indicator has exited from its oversold zone and rising.

Traders can create long position now and again on dips up to Rs 2380-2390 with a stop placed below Rs 2358.80 levels, for the targets of Rs 2486/2530 levels.