Nifty Watch:- The Nifty opened at 5484. The Index made a low at 5458 with a 30 point decline, and then moved up to its day high at 5508 and finally closed at 5493 with a gain of 9 points to its open. Today market consolidates between trading ranges of 50 points. It may lead to a big up move tomorrow. Nifty made a narrow range today which shows us that a big move will come soon, maybe tomorrow. This could be up or down.
Trend:- The short term trend is up. Today’s market is in a process of consolidation. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average. TA Insync(55-5) has now crossed above the level of -45 and is moving up. This shows us that the up move which started may continue.
Level:- Looking for minor support at 5450 and major support at 5380. Minor resistance comes at 5500 and major comes at 5550. Nifty made a Narrow range today. This could signal a big move tomorrow.
Wednesday, February 16, 2011
Market Outlook for 17 02 2011
Markets opened on a flat note and for the whole day Nifty traded in a range of 50 odd points ( 5508 on the higher side and 5463 on the lower side). It oscillated up and down on alternate bouts of buying and selling but could not breakout on the either side of the range. Market response to Tata Steel’s results were positive as the stock closed on a strong note at Rs.641 and it appears that the stock has the potential to cross its previous swing high of Rs.664.50. The other stocks which ended with minor gains were Titan, L& T, Axis Bank, Jindal Steel and Bombay Dyeing. On the other hand stocks which were on the losing side were BHEL, Dr Reddy, HDFC and M&M but the losses were of a very minor nature. A few cash stocks like TTK Prestige, Jindal Polyester and ARSS Infra closed with minor gains with low volumes. As discussed yesterday, we expect the markets to inch up in a slow and steady manner till the presentation of the budget.
Nifty is expected to consolidate between 5450 on the lower side and 5550 on the higher end for some time and once it is able to move beyond 5550, it can move upto a level of 5650-5700. As long as 5450 level is held it would be prudent to trade with a positive bias.
Nifty is expected to consolidate between 5450 on the lower side and 5550 on the higher end for some time and once it is able to move beyond 5550, it can move upto a level of 5650-5700. As long as 5450 level is held it would be prudent to trade with a positive bias.
Tuesday, February 15, 2011
Stock to trade 16 02 2011
- SBI :- State Bank of India is emerging from a double bottom. Price target may be 2900 approx. consider buying.
- PNB :- TA Turtle upside breakout in PNB 30 mins. Chart. Buy with stop loss below 1070.
- Ranbaxy :- NR7 pattern in Ranbaxy. Buy above 620, Sell below 505.
A strong upmove,
Nifty Watch:- A strong upmove, starting from a low made at 5175 continued with the Nifty touching 5500 befoer retreating a bit. The Index is currently in the 5450 - 5500 resistance area. If and when the Nifty crosses this area, the next resistance comes at 5700 approx. Yesterday's notes are repeated for readers since they remain relevant.
1. After almost seven weeks of declines, the Nifty is oversold, ready for a correction on the upside. The current upmove is probably that correction.
2. Time Correction: The up move may last anywhere between three to four weeks, in terms of time.
3. Price Correction: markets have fallen by 1050 points approx. A correction can see the Nifty rally by 400 to 550 points, giving targets of 5580 to 5730 approx. These are only estimates.
Level:- Looking for support first at 5450 and then at 5380.. The resistance comes at 5500.
1. After almost seven weeks of declines, the Nifty is oversold, ready for a correction on the upside. The current upmove is probably that correction.
2. Time Correction: The up move may last anywhere between three to four weeks, in terms of time.
3. Price Correction: markets have fallen by 1050 points approx. A correction can see the Nifty rally by 400 to 550 points, giving targets of 5580 to 5730 approx. These are only estimates.
Level:- Looking for support first at 5450 and then at 5380.. The resistance comes at 5500.
Market Outlook 16 02 2011
Markets opened on a flat note and after a small decline of 40 odd points in Nifty in the first two hours it bounced back smartly to cross the crucial resistance level of 5500 in the second half. However, it witnessed profit booking around 5500 levels and finally managed to close at a respectable 5481 levels. From the low of 5177 made on 11th Feb, Nifty has rallied to an intraday high of 5506.50 ( recovery of 329 points). Since the recovery has been too swift and sharp, Nifty might consolidate between 5400 and 5550 levels for some time before takes any fresh directional move. Banking Stocks especially the likes of SBI, ICICI Bank, HDFC Bank and Bank of Baroda were the ones which appreciated the most during this rally. Reliance showed a lot of strength in today’s trading and now if it is able to trade above Rs.950, then it will help the recovery to gain further steam as it has the highest weightage in the Nifty. ADAG stocks were in limelight as Reliance Capital and Reliance Infra saw huge volumes. Capital good sector stocks like BHEL and L&T saw selling right from the morning and both of them lost around 2% each.
We expect Nifty to trade in the 5400-5550 band for some time and stock specific action will be more pronounced during this period. One should be prepared to trade both sides of the market for the next 1-2 trading sessions but till budget we are of the view that the market is likely to have a positive bias.
We expect Nifty to trade in the 5400-5550 band for some time and stock specific action will be more pronounced during this period. One should be prepared to trade both sides of the market for the next 1-2 trading sessions but till budget we are of the view that the market is likely to have a positive bias.
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