- Titan :- TA Insync overbought in Titan Industry. Sell with stop loss above 3640.
- Dish TV :- NR7 pattern in Dish TV. Buy above 61, Sell below 59.
Thursday, February 3, 2011
Stock to trade 04 02 2011
Nifty Watch :- BULLS HAVE THE DAY, MARKETS IN TRADING RANGE
While the bulls were in complete control today, the Nifty remains in a trading range between 5420 and
5550. This is a narrow 130 point range which has been established over a period of four days. It is quite narrow to sustain for any length of time. Then, we can expect a breakout/breakdown from the range, any day. A close above 5550 will tell us there is more upside. A move below 5420 will give suggestions of
significantly more downside.Support comes in around 5480. A dip to 5480 may be considered as a buy on dip. Of course, keep a stop. A breakout above 5550 should be used to initial / add new long positions. Of course, below 5420 all buying should be suspended.
The bank Nifty remains in a consolidation, just like its big boss - the Nifty. The Bank chart has an Insync indicator which is much above the minus 45 oversold area. This could mean any one of the two options: (a) Banks are outperforming with the indicator remaining high up OR (b) The Insync indicator has lot of room to fall as it goes towards the minus 45 oversold level. It is not easy to determine which of the two options may work out. To keep trading simple, a breakout from the trading range is a buy.
5550. This is a narrow 130 point range which has been established over a period of four days. It is quite narrow to sustain for any length of time. Then, we can expect a breakout/breakdown from the range, any day. A close above 5550 will tell us there is more upside. A move below 5420 will give suggestions of
significantly more downside.Support comes in around 5480. A dip to 5480 may be considered as a buy on dip. Of course, keep a stop. A breakout above 5550 should be used to initial / add new long positions. Of course, below 5420 all buying should be suspended.
The bank Nifty remains in a consolidation, just like its big boss - the Nifty. The Bank chart has an Insync indicator which is much above the minus 45 oversold area. This could mean any one of the two options: (a) Banks are outperforming with the indicator remaining high up OR (b) The Insync indicator has lot of room to fall as it goes towards the minus 45 oversold level. It is not easy to determine which of the two options may work out. To keep trading simple, a breakout from the trading range is a buy.
Market Outlook FOR 04 02 2011
Finally, we witnessed a rally that was able to sustain for a whole session. Nifty opened on a slightly positive note and kept on building momentum as the day progressed. It was a mix of buying in some stronger counters like Hindalco and short covering in highly oversold counters like DLF and others. Heavyweights like SBI, L&T, RIL and Tata Motors witnessed some interest at lower levels and for a change this interest persisted for the whole day. Bharti was the biggest gainer amongst the index heavyweights as it gained over 5%. Some of the other big gainers were Polaris, DLF, HDIL, JP Associates, Syndicate bank, Renuka, REC, Bata, IVRCL Infra, Hindalco, Sintex, HCC, Adani and Exide. But , there were a few that remained on the selling list. The list includes Sobha, Cummins, Voltas, OFSS, Ashok Leyland, IOC and HCL Tech. Nifty managed to close above 5500.
Nifty faces immediate resistance at around 5540-50 but as stated earlier also we believe that the rebound has some more legs to it and Nifty could inch up towards 5650-5680. The efforts to break below 5400 have been unsuccessful despite strong negative sentiments. It seems that combination of short covering and value buying could sustain Nifty and should it take it higher. Even the weaker stocks/ sectors like realty and infra could also move higher on short covering. The stronger stocks are Hindalco, Bharti, Sterlite, TCS and Tata Steel. Banks have seen consolidation for past 7-10 sessions and could now move higher. The better looking charts in the short term are SBI, ICICI, Syndicate bank, Indusind Bank and Union bank. Bank Nifty might move above 11000 in coming sessions. Hindalco has given a break out above 240 and one can accumulate it for next technical target of around Rs 265.
Nifty has immediate support around 5465-70 while above 5550 it could move to around 5620-30.
Nifty faces immediate resistance at around 5540-50 but as stated earlier also we believe that the rebound has some more legs to it and Nifty could inch up towards 5650-5680. The efforts to break below 5400 have been unsuccessful despite strong negative sentiments. It seems that combination of short covering and value buying could sustain Nifty and should it take it higher. Even the weaker stocks/ sectors like realty and infra could also move higher on short covering. The stronger stocks are Hindalco, Bharti, Sterlite, TCS and Tata Steel. Banks have seen consolidation for past 7-10 sessions and could now move higher. The better looking charts in the short term are SBI, ICICI, Syndicate bank, Indusind Bank and Union bank. Bank Nifty might move above 11000 in coming sessions. Hindalco has given a break out above 240 and one can accumulate it for next technical target of around Rs 265.
Nifty has immediate support around 5465-70 while above 5550 it could move to around 5620-30.
Nifty Chart
- Nifty started the day with a flat opening and gained momentum after first hour of trading breaking the resistance of 5480 and 5520 and finally closed at 5526.
- The short term down trend for the market would reverse and traders can initiate long positions with 5380 as stop on closing basis.
- Today market is expected to trade in the range of 5380– 5620.
- Wait for any fresh trade in nifty.
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