- Cipla 322.10 Cipla moving in a trading range and TA Insync 55,5 is overbought. Sell below 317 with stop loss above 328.
- STER 171.45 NR7 pattern in STER buy above 173, Sell below 170.
Sunday, April 17, 2011
STOCK TO TRADE 18 04 2011
Nifty is in a small trading range.
Nifty Watch:- Today Nifty opened at 5898 and touches its high at 5907. After that Nifty move down and touches it’s low at 5806 and finally closed near to its day low at 5814 with a decrease of 84 points to its day open.
Nifty is trading in a small trading range from 5730 to 5950. A breakout or a breakdown at these levels will decide the next move of the nifty.
Trend:- Nifty is trading above to its 50 and 200 days MA. The short term trend is up.
TA Insync (55-5) is in downtrend. It is moving down at 27.03.This suggest that Nifty may move down also.
Level:- Looking for support at 5730. Resistance comes at 5950.
Summary:- As nifty trading in a range so traders (investors) should take day trade only and also look for the breakout or breakdown at 5950 and 5730. This will give a big buying opportunity.
Nifty is trading in a small trading range from 5730 to 5950. A breakout or a breakdown at these levels will decide the next move of the nifty.
Trend:- Nifty is trading above to its 50 and 200 days MA. The short term trend is up.
TA Insync (55-5) is in downtrend. It is moving down at 27.03.This suggest that Nifty may move down also.
Level:- Looking for support at 5730. Resistance comes at 5950.
Summary:- As nifty trading in a range so traders (investors) should take day trade only and also look for the breakout or breakdown at 5950 and 5730. This will give a big buying opportunity.
Market Outlook 18 04 2011
Contrary to the expectations the truncated week provided lot of excitement before closing with minor losses. After a lackluster Monday markets zoomed up unexpectedly above 5900 on Wednesday on strong speculative buying in Banks and IT stocks. But, the whole excitement and momentum fizzled out on Friday as two ‘I’s spooked the sentiments. In the morning it was Infosys that disappointed the markets by giving a dull future guidance. Resignation by Mr Mohandas Pai further dampened the spirits. Infosys lost over 10% in one of the worst post results performance by the scrip since 2003. Then came the inflation figures that were much above the expected levels and that triggered selling in interest rate sensitive like Banks and Realty. Banks that had led the rally on Wednesday lost almost all its gains as did Nifty that lost around 100 points. Some mid caps did continue to rally even on Friday but the momentum seems to be waning towards the close. The IT index was the biggest loser for the week while FMCG and Capital Goods indices were leading gainers.
Infosys provided fodder for the bears as Nifty retreated again form around 5925-30 levels. But it seems that more than the results the rising inflation figure as well as resilient Crude prices could play spoilsport for the bulls. The inflation figure of 8.98% has dashed all hopes of RBI not taking any policy action in its next meet. This might dampen the sentiments for one of the pillars of current rally, the banking stocks. Technically too the Nifty has now twice retraced back from the 5925-5940 resistance zone. As mentioned in Friday’s newsletter also that it would be prudent to wait for Nifty to settle above 5925-30 before taking fresh long positions. On the downside Nifty has support around 5750 and then around 5640-50. In fact, on weekly charts 5640-50 support is a crucial one. Some heavyweights that still are showing positive bias are ITC, Bharti and L&T. L&T closed above 1720 again on Friday and one could initiate longs with stop below 1675. Bharti has some resistance around 375-378 and beyond that it could target Rs 410-415. Some other charts that are bullish are IGL( above 323), Havells, GMDC(above 147), Bajaj Auto( above 1425), ABB( above 830), Crompton and Can Bank.
Infosys provided fodder for the bears as Nifty retreated again form around 5925-30 levels. But it seems that more than the results the rising inflation figure as well as resilient Crude prices could play spoilsport for the bulls. The inflation figure of 8.98% has dashed all hopes of RBI not taking any policy action in its next meet. This might dampen the sentiments for one of the pillars of current rally, the banking stocks. Technically too the Nifty has now twice retraced back from the 5925-5940 resistance zone. As mentioned in Friday’s newsletter also that it would be prudent to wait for Nifty to settle above 5925-30 before taking fresh long positions. On the downside Nifty has support around 5750 and then around 5640-50. In fact, on weekly charts 5640-50 support is a crucial one. Some heavyweights that still are showing positive bias are ITC, Bharti and L&T. L&T closed above 1720 again on Friday and one could initiate longs with stop below 1675. Bharti has some resistance around 375-378 and beyond that it could target Rs 410-415. Some other charts that are bullish are IGL( above 323), Havells, GMDC(above 147), Bajaj Auto( above 1425), ABB( above 830), Crompton and Can Bank.
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