Stock Market Outlook For 2nd Sep '11

The bulls gained control of the Dalal Street whole the day of trade, which resulted in the Nifty closing just above the 5000 level. As the new contract has been strated in this month, market has taken again a high jump as we predicted. The 30-share BSE Sensex surged 260.42 points, to close at 16,676.75. Meanwhile, the 50-share NSE Nifty jumped 81.40 points, to end at 5,001.00 after hitting an intra-day high of 5,030.30. Market remain in the same position tomorrow also!!

Technical Levels in Nifty-50 for Tomorrow:

Resistance  :  R1  :  5090,  R2  :  5160.

Support      :  S1   :  4920,  S2   :  4850.

Trading Strategies Before start trade

Before starting the trade, it is the duty of every trader to know the hidden points

1. Risk/Reward ratio - Profit should be atleast 10 points more than SL
Reason : If your provider gives 20 pts SL and 20 pts trgt, then in case of loss ur loss is 24 (with brokerage) and in case of profit it will be 16 (with brokerage).

2. Never trade without SL.

3. Trade intraday (strictly to be followed by small traders)

4. Never try to recover the loss in the same day

5. The less you trade, The more you earn

6. Do not change the trade quantity frequently. Atleast, trade constant quantity for 1 month

7. No. of targets - No. of targets should be only and only 2
Reason : If your provider gives 3 or 4 targets you do not know where to book though "Trial SL method" is recommended (sites will be updated with highest achieved targets but it is never possible to predict the high)

8. Price Deviation - Price should not be more than 3 pts difference while you get the call

9. Accuracy must be at least 70%
These 4 points looks to be small but its unfortunate to reveal that these 4 constitute more than 50% of your profits

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