Last week turned out to be a bad one for bulls as Nifty closed lower on all 5 days of the week. The
momentum picked up on the last two days as Nifty collapsed from around 5825 levels to just around 5700. And this happened in a positive global backdrop as US markets moved to new post Lehman highs. The selling was seen across the board as finally bears asserted themselves as Bulls failed to take Nifty past 5930- 40 despite several attempts. Almost all sectors were under pressure with Realty again playing favorite with bears. BSE Realty index was down over 8% while Capital Goods lost around 4.5% as stocks like Bhel, Crompton Greaves and even L&T felt the pressure. Banking too was down around 3.5%. Only FMCG and Health Care bucked the overall trend and finished the week in green. Overall, nifty lost 2.3% and the broader trend too turned negative as small caps and mid caps also succumbed to bearish pressure. The short term side ways range has finally been settled in favor of bears. 5770-80 that was providing support in the short term has finally been broken and the only positive sign, if we may call that, was the fact that Nifty made an intra day low at 5706 that is marginally higher than the previous immediate low at 5693. But, the overall momentum and the technical picture of some of the key heavyweights suggests that we could be headed lower next week and could see some support around 5600-5625. Resistance on the higher side is likely around 5785-5800 and a relatively stronger one around 5835-40. Bank Nifty has slipped below 11500 and sustained trades below 11500 could potentially take it lower to around 10900-950. Some heavyweights that still retain the positive bias are Bharti, ONGC, ICICI and Tata Motors. Some of the mid caps that are showing positive bias are Opto Circuits, Lupin, Divis, Educomp ( above 485), Exide and Max India.
Nifty has immediate support around 5660-70 and then around 5590-5610 while resistance is around 5790- 5810.
Sunday, May 1, 2011
Wednesday, April 27, 2011
Trading Call 28 04 2011
- ASHOKLEY (55.50) : Buy the stock with a stop loss of 52 for a target of 61/65.
Stock To Trade 28 04 2011
- ITC 193.95 NR7 pattern in ITC. Buy above 194, Sell below 191.
- ABB 855.00 Breakout in ABB from trading range. buy with stop loss below 840.
Nifty remains in a small range (58005900).
Nifty Watch:- Today Nifty opened at 5884. At the same time Nifty touches its day high at 5892 and then start move down and touches it low at 5819 and finally closed at 5831 with a decline of 53 points to its day open.
Nifty remains in small range from 5800 to 5900. Trading in a range require a unique concept of buying at support and selling at resistance. They have a high accuracy rate when traded properly.
Trend:- Nifty is trading up to its 200 and 50 days MA.
Level:- Looking for support at 5800. Resistance comes at 5900.
TA Insync (55-5) is in downtrend. It is moving down at -10.95. This suggests that Nifty may move down also.
Summary:- There is no point in trading a range if it is not wide enough. I advice to wait for a breakout or a breakdown.
Nifty remains in small range from 5800 to 5900. Trading in a range require a unique concept of buying at support and selling at resistance. They have a high accuracy rate when traded properly.
Trend:- Nifty is trading up to its 200 and 50 days MA.
Level:- Looking for support at 5800. Resistance comes at 5900.
TA Insync (55-5) is in downtrend. It is moving down at -10.95. This suggests that Nifty may move down also.
Summary:- There is no point in trading a range if it is not wide enough. I advice to wait for a breakout or a breakdown.
Market Outlook 28 04 2011
The tug of war continued between bulls and bears as we approach the F&O expiry. The prospect of US Fed discontinuing the QE series kept the bulls in check as uncertainty still prevails as to which asset class would be impacted immediately once the bond purchases were discontinued. Nifty opened with a slight negative bias and that persisted throughout the session as unwinding was seen in certain heavyweights. Wipro’s numbers were in line with expectations but the guidance seems to have disappointed the street as stock lost around 4%. RIL too helped the bears as it slid below Rs1000 and closed almost at the day’s low at Rs 986.
Nifty has immediate support around 5825-30 and then around 5770-80 while above 5915-20 fresh momentum is likely. Some correction was also seen in banking heavyweights. Some of the prominent laggards for the day were Ambuja Cement, Exide, LITL, India Cement, JP Associates, Bhel, GVK and Reliance Infra. ONGC, ITC and Bharti were the ones that tried to balance out the bears. ONGC was the strongest of the lot as it rose around 2.5% to close on a 3- months’ high. Bharti too posted a new recent high before profit taking shaved off some gains. ITC hit all time high. Some of the other gainers were Bata India, Praj, Jindal Holding, Godrej Ind, OIL, Educomp and Max India.
Nifty finally closed at the lower end of the day’s range at 5833, down 35 points. Nifty continues to bounce up and down within a well defined range. Nothing much has changed technically after today’s session as we still have support around 5770-80 and strong resistance around 5910-30. ONGC did give a breakout from almost 3 months range and the pattern suggests targets of Rs 322-25 in the short term while over medium term it could target Rs 345-350. RIL has been moving in 995-1055 range but that has broken on the downside and sustained trades below Rs 1000 could take it lower to around Rs 960 and even Rs 940. Bata has seen a continuation breakout above Rs435 and could target Rs 465-470 over next few sessions. Some of the pharma counters like Lupin( above Rs 425), Biocon, Orchid and Divis are also showing positive bias.
Nifty has immediate support around 5825-30 and then around 5770-80 while above 5915-20 fresh momentum is likely. Some correction was also seen in banking heavyweights. Some of the prominent laggards for the day were Ambuja Cement, Exide, LITL, India Cement, JP Associates, Bhel, GVK and Reliance Infra. ONGC, ITC and Bharti were the ones that tried to balance out the bears. ONGC was the strongest of the lot as it rose around 2.5% to close on a 3- months’ high. Bharti too posted a new recent high before profit taking shaved off some gains. ITC hit all time high. Some of the other gainers were Bata India, Praj, Jindal Holding, Godrej Ind, OIL, Educomp and Max India.
Nifty finally closed at the lower end of the day’s range at 5833, down 35 points. Nifty continues to bounce up and down within a well defined range. Nothing much has changed technically after today’s session as we still have support around 5770-80 and strong resistance around 5910-30. ONGC did give a breakout from almost 3 months range and the pattern suggests targets of Rs 322-25 in the short term while over medium term it could target Rs 345-350. RIL has been moving in 995-1055 range but that has broken on the downside and sustained trades below Rs 1000 could take it lower to around Rs 960 and even Rs 940. Bata has seen a continuation breakout above Rs435 and could target Rs 465-470 over next few sessions. Some of the pharma counters like Lupin( above Rs 425), Biocon, Orchid and Divis are also showing positive bias.
Subscribe to:
Posts (Atom)