Sunday, March 6, 2011
Todays sentence
In many cyclical industries when the upturn comes the big bang comes in relatively poorer quality stocks. – Devina Mehra
Stock To Trade 07 03 2011
- HCL TECH :- NR7 pattern in HCL Tech. Buy above 468, Sell below 461.
- HIND ZINC :- TA Turtle upside breakout in HINDZINC 30 mins. Chart. Buy with stop loss below 1325.
- Petronet :- Oversold TA Insync in Petronet. Buy with stop loss below 113.
Consolidation continues
Nifty Watch:- Today Nifty opened at 5592 with a gap up of 48 points. Nifty quickly made its day high at 5611 with a gain of 19 points to its day open and then it face decline and touches its day low at 5517 with a decrease of 94 points to its day high. At the end Nifty move up and closed at 5548 with a decrease of 44 points to its day open. We are in a process of consolidation. A breakout at 5700 may end this consolidation. So traders should watch patiently.
Trend:- The short term trend is up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. These averages cut each other at 5653. This could be a huge resistance for the nifty. TA Insync(55-5) is above the level of -45 and moving up. This indicator is suggesting that nifty may move up also.
Level:- Looking for support at 5450 . Resistance comes at 5700.
Summary:- In last three days Nifty closed between 5545 to 5555. This suggest that Nifty is in a process of consolidation. A breakout at 5700 or a breakdown at 5450 may end this consolidation. So investor and traders should watch these levels also.
Trend:- The short term trend is up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. These averages cut each other at 5653. This could be a huge resistance for the nifty. TA Insync(55-5) is above the level of -45 and moving up. This indicator is suggesting that nifty may move up also.
Level:- Looking for support at 5450 . Resistance comes at 5700.
Summary:- In last three days Nifty closed between 5545 to 5555. This suggest that Nifty is in a process of consolidation. A breakout at 5700 or a breakdown at 5450 may end this consolidation. So investor and traders should watch these levels also.
Market Outlook FOR 07 03 2011
The Budget week lived upto its reputation of being a volatile one. Volatility began on the Budget day itself as Nifty rallied initially, only to give up most of its gains. But, the day after saw a one sided up move of around 200 points as Nifty moved past 5500. Overall, it was a good week for bulls as indices rallied over 4%. This came against the backdrop of higher Crude prices and a lukewarm Budget. But, the fact that there were no expectations whatsoever from the Budget and there were short positions going into the Budget helped the markets. Auto, FMCG and Banking indices were the top three gainers for various reasons associated to Budget. There were no sectoral losers but the least gains were seen in IT and Oil and Gas. Nifty crossed 5600 briefly on Friday before selling set in at higher levels. Markets have seen a decent rally post Budget but now we are placed just around the strong resistance zone of 5550 to 5600. As mentioned
earlier, it may not be easier to take out this resistance in one go. But, we do believe that market has made a sustainable bottom around 5230 and for the first time since November 2010, we have a higher bottom and now higher top( 5608 on Friday). The resistance at 5600 is likely to be taken out eventually maybe over next 5-7 trading sessions. Any correction should find initial support around 5440-60 and then a strong one around 5350-5375.
The second level is unlikely to be breached and positional traders could take long positions on declines in Nifty as well as bullish counters with positional stop loss below 5340. Clear breakout is seen above 5625 with potential targets of 5770 and around 5900. Banks and Autos have been the leaders in the current rally. One needs to be selective in Autos and we see positive bias in Bajaj Auto and Hero Honda (above 1560). Banking is looking to be in a better shape and one can use dips to accumulate stocks like HDFC Bank, SBI, Yes Bank, Indusind Bank, Allahabad bank, OBC, Canara Bank and BOI. Another important thing to note is that once Nifty stabilizes above 5625 short covering could lift the weaker sectors like Infra and Realty too. Certain other counters that are looking positive and are Buy on dips candidates are L&T, IDFC, Havells,
Cairns and Sterlite.
Nifty has immediate support around 5445-60 and then around 5375-5400 while resistance should be seen between 5570-5610.
earlier, it may not be easier to take out this resistance in one go. But, we do believe that market has made a sustainable bottom around 5230 and for the first time since November 2010, we have a higher bottom and now higher top( 5608 on Friday). The resistance at 5600 is likely to be taken out eventually maybe over next 5-7 trading sessions. Any correction should find initial support around 5440-60 and then a strong one around 5350-5375.
The second level is unlikely to be breached and positional traders could take long positions on declines in Nifty as well as bullish counters with positional stop loss below 5340. Clear breakout is seen above 5625 with potential targets of 5770 and around 5900. Banks and Autos have been the leaders in the current rally. One needs to be selective in Autos and we see positive bias in Bajaj Auto and Hero Honda (above 1560). Banking is looking to be in a better shape and one can use dips to accumulate stocks like HDFC Bank, SBI, Yes Bank, Indusind Bank, Allahabad bank, OBC, Canara Bank and BOI. Another important thing to note is that once Nifty stabilizes above 5625 short covering could lift the weaker sectors like Infra and Realty too. Certain other counters that are looking positive and are Buy on dips candidates are L&T, IDFC, Havells,
Cairns and Sterlite.
Nifty has immediate support around 5445-60 and then around 5375-5400 while resistance should be seen between 5570-5610.
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