Sell on rise markets ?

The markets tried their best to edge higher in the early part of the trading week, but eventually fell apart following earnings disappointment from Infosys. The BSE benchmark index had managed to close at a fresh three-month high at 17,618 on Tuesday. However, thereafter the index tumbled to a low of 17,181, down 450 points from the week’s high of 17,631. The Sensex eventually ended with a loss of 307 points at 17,214.

5600: A CRUCIAL RESISTANCE

The week gone by turned out to be an extremely good one for the market as benchmark indices surged 4.4%, the highest percentage gain after the week ended 5th November 2010. Nifty closed in green on all the four trading sessions of the truncated trading week. On Friday however, the benchmark encountered a stiff resistance in the vicinity of important resistance levels, viz. 200 Day Exponential Moving Average and immediate previous top placed at 5601 and 5599 respectively, and slipped more than a percent from the top of the day to close at 5538, still gaining 235 points or 4.4% compared to previous week.

Technical Calls - Jan 12 2011

Sensex (19196)

Sensex has resistance at 19336, 19492 and 19503. Support at 19073 and 19005.

NIFTY (5754)

Resistance at 5765, 5779, 5795 and 5829. Support at 5744, 5728, 5711 and 5700.

RECOMMENDATIONS

1) UTV SOFTWARE (544.25)

Support at 539 and 531. (Buy at declines) Resistance at 549 above it can test 555 and 563.

2) PFIZER (1123.25)

Support at 1110 and 1085. Resistance at 1130 above 1148 and 1165. (Buy for short term)

3) HINDUSTAN ZINC (1380)

Support at 1362 and 1345. Resistance at 1388 above it can test 1402 and 1435. (Buy for short term)

4) INFOSYS (3325)

Support at 3288 and 3205. Resistance at 3381 above 3411 and 3450. Expect volatile movements.



5) TATA STEEL (646.55)

The stock has support at 640 and 637. (Buy at declines). Resistance at 652 above 660 and 665


via Geojit

Strategy - Technical Charts

Strategy - Technical Charts

Mahindra Forgings

We recommend a buy in the stock of Mahindra Forgings from a short-term perspective. It is apparent from the charts of the stock that from its March low of Rs 35.3, the stock has been on an intermediate term uptrend. However, following a medium-term downtrend from March 2010 peak (Rs 145) to the May trough of Rs 85, the stock reversed higher. Subsequently, the stock formed a strong base at the support level Rs 100 before inching higher.

Talbros Automotive Components

Investors with medium-term horizon can consider buying the stock of Talbros Automotive Components (Rs 87.7). The company manufactures gaskets, steering and suspension components, stampings, rubber products and forgings.

Correction expected this quarter ?

The markets are euphoric and nobody really wants to listen to anything which suggests a slide. Analyzing Nifty on the long term charts, a sharp correction has been seen after Nifty hits seven consecutive record highs on the quarterly charts. The intensity of the correction forces the Nifty to break the low of its previous white candle.

Technical Analysis - Sep 30 2010

Technical Analysis - Sep 30 2010

PBA Infrastructure

Investors with medium-term perspective can consider buying the stock of PBA Infrastructure (Rs 90.6).

The company is a construction contractor, executing projects across varied segments such as national and State highways and bridges, dams and mining structures. Since its all-time low of Rs 20.7 recorded in March 2009, the stock has been trending upwards, forming higher peaks and troughs.

Sterlite Technologies

We recommend a buy in the stock of Sterlite Technologies from a short-term perspective. It is apparent from the charts of the stock that it has been on a steady long-term uptrend forming higher peaks and higher troughs from its January 2009 low of Rs 8.8. However, following a short-term correction from its high of Rs 123 this June, the stock found support retracing 23.6 per cent fibonacci retracement of around Rs 95 in early September. This level is also an important medium-term support level for the stock. On Tuesday, the stock gained 3 per cent closing above its 21-day moving average. We observe that there is an increase in volume in the past two trading sessions. The daily and weekly relative strength indices are rising in the neutral region towards bullish zone. Daily moving average convergence divergence oscillator has signalled a buy and is inching towards positive territory. Taking into consideration the presence of key support and its long-term uptrend still being in place, we are bullish on the stock. We expect it to move up until it hits our price target of Rs 102 or Rs 104 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 96.

via BL

NIIT

We recommend a buy in the stock of NIIT from a short-term horizon. It is clear from the charts of the stock that since the March 2009 trough of Rs 15, the stock has been trending upward. In late May 2010, the stock took support around Rs 58 and started moving up. It has been in a medium-term uptrend since then. The stock spiked 6 per cent accompanied with good volumes on September 16, decisively breaching its 21, 50 and 200-day moving average compression around Rs 67. The stock's bullish momentum is reinforced with this surge. The daily relative strength index has entered the bullish zone and the weekly RSI is on the verge of entering this zone. The daily moving average convergence divergence oscillator has signalled a buy and is hovering in positive territory. The weekly MACD is also featuring in positive territory implying upward momentum. Our short-term forecast on the stock is bullish. We expect the stock to move up further until it hits our price target of Rs 73 or Rs 76 in the approaching trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 69.5.

via BL

V-Guard Industries

We recommend a sell in the stock of c from a short-term perspective. It is apparent from the charts of the stock that it has been on a long-term uptrend from its March 2009 trough of Rs 38. The stock's uptrend got accelerated in late July 2010 and has been on a medium-term uptrend since then. However, after recording a life-time high of Rs 212 on September 15, the stock started to witness selling pressure and formed shooting star candlestick pattern.

SREI Infrastructure Finance

Investors with a short-term trading perspective can buy the stock of SREI Infrastructure Finance. The stock is moving in a sideways channel with an upward bias since last June. Within this channel, the stock is in a medium term uptrend since February 2010.

Andhra Sugars

We recommend a buy in the stock of The Andhra Sugars from a short-term perceptive. It is seen from the charts of the stock that since its March 2009 low of Rs 52, it has been trending upwards. However, following a medium-term correction from Rs 160 to Rs 105, resumed the uptrend in early November 2009. Since then, the stock has been on an intermediate-term uptrend, shaping higher peaks and higher troughs. Moreover, short-term trend is also up for the stock from Rs 123. On September 2, the stock jumped 4 per cent with good volume, breaching its 21-day moving average.

Technical Analysis - Sep 7 2010

Technical Analysis - Sep 7 2010

Usha Martin

Investors with medium-term perspective can consider buying the stock of Usha Martin (Rs 88.5). The stock has been on a steady long-term uptrend since its March 2009 low of Rs 18.6, shaping rising peaks and troughs.

Texmaco

We recommend a buy in the stock of Texmaco from a short-term perspective. After finding support in the band between Rs 115 and Rs 120 in late May, the stock reversed higher. The long-term trend is up from its March 2009 low of Rs 35. In early August, the stock breached its 200-day moving average as well as significant intermediate-term resistance at Rs 140 and continued to trend up. The stock is hovering well above its 50- and 200-day moving average. On Thursday, the stock climbed 3.4 per cent, penetrating its near-term resistance level of Rs 155. We notice that there is an increase in volume over the past two trading sessions. The 14-day relative strength index has re-entered in to the bullish zone from the neutral region whereas the weekly RSI is featuring in the bullish zone. Both daily and weekly moving average convergence divergence oscillators are hovering in the positive territory implying upward momentum. Our short-term forecast on the stock is positive. We anticipate it to continue its up-move until it hits our price target of Rs 164 or Rs 169. Short-term traders can buy the stock while maintaining stop-loss at Rs 154.

via BL

CEAT

We recommend a buy in the stock of CEAT from a short-term perspective. It is seen from the charts of the stock that it had been on an intermediate-term downtrend from its October 2009 peak of Rs 190 until it found support at around Rs 125 in May 2010. However, after hovering between Rs 125 and Rs 130 , the stock started to trend up and has since been on a medium term uptrend. On August 17, the sock jumped 12 per cent accompanied with good volumes, conclusively penetrating its 50 and 200-day moving averages. Thereafter, the stock decisively breached its intermediate-term downtrend line, signalling resumption of uptrend. Moreover, on Wednesday, the stock bounced up 6.6 per cent reinforcing the bullish momentum. The stock is trading well above its 50 and 200-day moving averages. The daily relative strength index has re-entered into the bullish zone from the neutral region and weekly RSI is on the brink of entering into this zone. Further, the weekly moving average convergence divergence oscillator is likely to enter into the positive territory implying upward momentum.

Geodesic

Investors with a medium-term perspective can consider buying the stock of Geodesic (Rs 103.6). The stock has been on an intermediate-term downtrend from its September 2009 peak of Rs 158, forming lower peaks and lower troughs.

Banking - Technical Report

Banking - Technical Report