Trades for 6th July Week

Trading calls for the week, we have DLF and RPower.

Buy DLF above Rs. 339.50 with a stop of 304 for a target of 441.00

Buy RPower above Rs. 178.70 with a stop of 168.10 for a target of 209.00.

As the opening day of the week is a Big event risk day, apply caution on trading as a whole. Though there is a lot of positive bias built up on the expectation in the Budget proposals, there seems to be huge pessimism in the broad market.

43 stocks on the Nifty Index has indecision on the weekly charts, with 2 stocks in the bearish territory. This market needs very high news to swing either side. Budget days always have that, though the overall budget will be pro-market, there will be some negatives, which will give more weightage at the time of announcement, to bring the market into wild swings.

By the time the euphoria gets settled, a clear direction would have emerged.

As of now Nifty is in buy mode with a stop at 4150 levels. Once Nifty crosses 4650 decisively, the uptrend gets one more leash of power. Take calls as per broad consensus and ride the swing.

Both our calls will be traded in the notional account. We have only Bharti as open position in the account. All other positions have been closed. Our open risk is Rs. 900.00, hence allowing us to risk Rs. 5235.00 for this month, after adjusting previous months gains.

We will trade both these positions on 1% risk, i.e., Rs. 1000.00 per position, so that we have risk available for new positions after budget news. We have given the spreadsheet of our positions done so far.

Happy trading.