Stock To Trade 19 04 2011

• EKC 83.30 EKC is moving in a narrow range and TA Insync 55,5 is overbought. Short below 82 with stop loss above 83.50.
• Castrol 478.50 NR7 bar pattern in Castrol India. Buy above 488 with stop loss below 478.

Nifty trading at the lower end of trading range.

Nifty Watch:- Today Nifty opened at 5824 and touches its high at 5897. After that Nifty move down and touches it’s low at 5722 and finally closed near to its day low at 5732 with a decrease of 92 points to its day open. Nifty is trading at lower end of its trading range (5950-5730). A breakdown at this level (5730) may lead to a down move.

Trend:- The short term trend is up. Nifty is standing on its 200 days MA. If nifty breaks its 200 days MA then we may enter in a downtrend.

TA Insync (55-5) is in downtrend. It is moving down at 17.51.This suggest that Nifty may move down also.

Level:- Looking for support at 5550. Resistance comes at 5950.

Summary:- Nifty is trading at the lower level of its trading range. Buying/Selling is suggested after the breakout or breakdown. Investor should wait for this.

Market Outlook 19 04 2011

It was a volatile opening to the week as market witnessed strong two-way movement. Markets moved up sharply in the morning session as Nifty moved to around 5900 again. But strong sell-off in key heavyweights at higher levels erased all the early gains in about 30 minutes. Since then it was a struggle for bulls as downward spiral gained momentum as the day progressed. Selling was almost across the board as all major sectors lost ground. Main losses were seen in heavyweights like DLF, HCL Tech, TCS, JP Associates, Sesa Goa, Hindalco, Tata Steel, L&T, Axis Bank and Infosys. Some of the prominent mid cap losers were Opto Circuits, Chambal, Max, Hind Oil, DCHL, Uco Bank, Welcorp, Orbit, Hexaware, HDIL, Polaris and Jindal Holding. Few stocks that did manage to buck the overall bearish trend were MRPL, Hotel Leela, Mundra Port, Jet Airways, GE Shipping, Indian Bank, Crompton and Canara Bank. Volumes were heavy while advances were outnumbered by the declining issues. Nifty failed to move past 5900 despite making another surprise attempt in the early part of the session. Volatility was on the higher side as bears gained control as the day progressed. Wide bars of past 3-4 sessions as well as the heavy volumes today seem to suggest that we could be heading lower to atleast test the weekly supports of around 5625-5640 mentioned yesterday. HDFC Bank came out with good results after market after hours and that may have some bearing on atleast banking stocks in the morning. But technically the banking heavyweights ICICI Bank, Axis and SBI have violated the short term supports at 1090, 1410 and 2760 respectively. So, one needs to take a cautious stance while trading on the long side. Metal stocks are also exhibiting weakness. DLF has seen sharp correction over last few sessions and is now in a heavily oversold state in hourly charts. A sharp rebound from around 228-230 cannot be ruled out in DLF. MRPL saw huge volumes and breakout on daily charts. Sustained trades above 73 could take it to around Rs 77 and even Rs 80. Few others that still look positive are Bajaj Auto, Crompton and ABB.

Nifty has immediate support around 5675-85 and a significant one at 5630-5640 while resistance is seen at 5785-90 and then around 5835-40.