Bharti - Revisited - 06 Jun 2009

In an earlier post almost a week ago, I suggested for aggressive traders to buy Bharti between 750 and 820 with a stop loss at 720, and for conservative traders to buy above 875.

One more week has passed. From the chart at the left, it appears that while the uptrend is still intact, the upward momentum has stalled somewhat. And Bharti may have entered an intermediate consolidation phase in which it may simply oscillate between 750 and 850.

At this point, I do not recommend adding any long position in Bharti. It is far better to wait for Bharti to come out of the consolidation phase before taking a position.

For long positions already held, the choice is to either hold the position with a revised Stop Loss of 750, or to liquidate the position and get into cash. Individuals can make their own decision, depending on their own overall cash position etc.

The uptrend in Bharti will be confirmed if Bharti closes on a daily basis above 875, Conservative traders can take long position at that point.

If on the other hand, Bharti closes below 750 on two consecutive days, it is likely to enter a near teem downtrend. In such a scenario, aggressive traders can sell Bharti below 750 with a Stop Loss above 815 for likely targets of 710, 660 and 620.

Disclaimer: The above analysis is just that - my analysis. If you choose to trade on the basis of this analysis, you will be solely responsible for the outcome of the trade - profit or loss. Please keep in mind that day trading is not for the novice and there is significant risk of loss of capital in trading.