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Friday, September 17, 2010
Market seen opening higher on positive global cues
The market is likely to see a higher start on positive global cues. Trading of the S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could rise 11 points at the opening bell.
Markets expect a flat start
Headlines for the day:
Banks may defer walking in RBI's footsteps
RIL may invest in Chesapeake shale asset
PSUs to get 42% gas for power sector
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
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