Realty Gains As Nifty Stages Recovery

The GDP numbers provided some relief to the battered bulls as Nifty staged a smart recovery from sub 5800 levels. GDP came at better that expected 8.9% but even that initially failed to have much impact as Nifty dropped almost 50 points lower to 5770. But then recovery was seen across the board and particularly in the stocks that have seen significant erosion in market cap over past 7 days. So, the best performing sector of the day was Realty as short covering and perhaps some value buying at lower levels helped stocks like DLF, Unitech, Orbit, HDIL and IBRealty to gain ground. The financial stocks too were amongst the gainers as buying returned in stocks like SBI and LIC Hsg. Metals remained under pressure on global worries particularly China. Some of the top gainers of the day were Core, Orbit, REC, HCC, IBReal, DCHL, DLF, BGR Energy, Bharti, IOB, Sobha, LIC Hsg, Renuka, HDIL and Can Bank. Stocks that remained under pressure were Pantaloon, GMDC, Escorts, Divis, Ashok Ley, Tata Steel and Voltas.

Nifty saw a significant rebound from 5770 and rallied more than 100 points intraday. But the 5880-90 level provided stiff resistance as Nifty failed to move past this level. But a small consolation for bulls was that Nifty managed to close above 5850. Broadly we believe that 5880-5915 is likely to be significant level to take out. More significantly Nifty now must stay above 5740-50 to stave off the threat of falling into downward spiral yet again. Bharti has provided leadership in past 5-7 days and it seems that Bharti could continue to outperform. Some resistance is likely around 375-380 but the overall set-up suggests that it could target Rs 425-440 in coming weeks. Some banking stocks like Central Bank( above 192), IDBI( above 166), Federal bank ( above 449), Uco bank and PNB( above 1230) are also showing signs of bottoming out.

Nifty has support around 5810-20 and then around 5760-75 while fresh momentum is likely above 5915.

Nifty Breaks The Losing Streak

There was some respite for the bulls as Nifty snapped its losing streak. Bailout package for Ireland and relief for Greece calmed the nerves a bit as far as global sentiments were concerned. Back home it was a nervous day despite some buying in certain key heavyweights like RIL, Bhel and L&T. Realty counters remained under pressure and the rebound seen in some of these was mild and hesitant. Index movement was basically on account of some buying at lower levels in Bharti, RIL and Bhel. BGR Energy was the biggest gainer amongst the F&O counters as it gained almost 22% on record volumes. Few others that found bargain buyers were IRB Infra, Chambal, Adani, Renuka, IFCI, Onmobile, Cairns, Bank of India, APIL and GMR Infra. Core Projects continued to struggle and selling was also seen in Escorts, Reliance Infra, Neyvelli, Welcorp, IVRCL Infra, EKC, Power Grid and RCOM.

Nifty did not make a fresh low and hesitatingly managed to move past 5800. Its real test would be to sustain above 5850-5880 as higher levels could invite fresh selling. The stocks and the sectors that have struggled over last few days continue to look jittery despite having fallen sharply. It needs to be seen whether index as well as the weaker stocks hold their Friday’s lows. IT and Pharma counters are being looked upon as safe havens and the price behaviour also reflects this. So, stocks like Lupin, Sun Pharma, TCS and Infosys are looking good. Bharti has been resilient and could be looked at as a positional trade or investment. Few others that are showing positive tendency are Indusind Bank, IFCI, Ultratech, Voltas, GE Shipping, Renuka Sugars and Auro Pharma.

Nifty has support around 5740-50 and then around 5680-90 while resistance is seen around 5870 and then 5925-30.

Scandals Continue To Put Pressure on Nifty

Nifty remained under immense pressure for the 4th consecutive week as market was rattled by yet another scandal. This time it was LIC Hsg and other banking institutions that were rocked by bribing scandal. CBI probe into realty companies getting loans from these institutions by paying bribes set the cat amongst the pigeons as various realty and financial stocks went into a tailspin. Friday was particularly bad for many stocks as panic gripped the bourses and marginal calls forced brokers to square off positions. So, we had stocks like Core Projects, HCC, Unitech, Orbit and the likes running for cover. HCC was the worst impacted as it also had to deal with Environment ministry that sent a show cause notice for its Lavassa project. JSPL too had to grapple with environment concern and stock hit a new 52 week low before recovering a bit in the end. Overall, it was yet another negative week for the markets as Nifty lost about 2.3%.

Downward spiral continues as Nifty failed to hold on to even the stronger support levels between 5800 and 5850. The leading sector (banking) has been rocked by various scandals and has been witnessing sharp sell off. Realty remains vulnerable given the current scenario and may be witnessing some kind of capitulation. The global scene also is not positive given the Ireland concerns coupled with Chinese tightening. Technically, the 5800-5850 support has not held as Nifty continues to hit new short term lows. Sensex has a bullish gap at around 18850 that has not been filled as yet and provides some faint hope for the bulls. The levels of 18800-900 could provide some support as the indicators have also reached extreme oversold readings. 19400-500 is a resistance area and till the time market sustains above 19500 it would be prudent not to take aggressively long positions. These are tricky times and it would be advisable to wait for some clarity to emerge before resorting to trading long positions.

However, investors with at least 6 months horizon could utilize panics to buy strong stocks. Nifty has support around 5680-5710 and resistance is seen around 5825-5850.

Markets on 25 Nov 10 - Midcap Stocks Have No Takers

Markets opened on a slightly positive note, rallied a bit, managed to remain steady till afternoon but later it gave way as the selling pressure of the expiry day was very heavy. Among the banking stocks PNB , Axis Bank and Bank of India were the big losers. LIC Housing Finance which was the big loser yesterday opened on a negative note and made a low of Rs.945 but managed to buck the trend and rallied smartly to an intraday high of Rs.1113.50 and finally closed at Rs.1053.80 with very minor losses. Infosys, HDFC Bank, Bajaj Auto, TCS, Hero Honda and HDFC were the major gainers and it was primarily Infosys and Bharti which helped the index close around 5800 levels. 
 

The biggest casualty was in the midcap stocks where there were no buyers and as a result the breadth was extremely poor. We are of the view that the corporate loan scandal to a very large extent has been discounted as market feels that this is not a systematic failure. The massive fall in the market to a very large extent can be attributed to the expiry of the derivative segment where rollover did not take place because of lack of confidence in the uptrend.

 

Other stocks which managed to buck the trend were Lupin, Indusind Bank, Bata India, Ultratech Cement, ACC and GE Shipping. These are the stocks which should be bought if the market remains steady tomorrow.

Nifty will face strong support at 5785 and 5750 and will face strong resistance around 5840 and 5885 levels.

Markets on 24 Nov 10 - LIC Loan Scam Affects Markets

Markets had opened on a steady note and were trading in a tight range but in the late afternoon the LIC Housing corporate loan scam saw the market and especially the PSU banking stocks tank by more than 10-12%. LIC Housing was the worst hit because of its direct involvement saw the stock losing Rs.238 in a single trading session. It fell to Rs.1070 against its previous closing of Rs.1245. The other PSU banking stocks which were badly hit were Bank of India, Central Banl, PNB, Canara Bank and SBI. But we do not think that this negative event has the potential to derail the Indian Bull market story. There could be some more fall because of this event but quality stocks will attract investors and will even attract premium because of strong fundamentals and strong corporate governance.

 

The market breadth turned negative after the reports of loan scam, in contrast with a strong breadth earlier in the day. The BSE 30-share Sensex lost 231.99 points or 1.18%, off close to 375 points from the day's high and up close to 85 points from the day's low. Volatility was high as traders rolled over positions in the derivatives segment. We are of the opinion that markets will have a bearish bias in the next few trading sessions and hence all rallies should be sold into. The medium and long term structure of the India growth story and the bull market is intact but it is the short term which will give problems to the market. However, it will not be a situation where every stock irrespective of its fundamentals will be hammered like 2008 crash. This time select stocks which have strong fundamentals will be bought during panic situations. Moreover, the market too is not heavily overleveraged. So there will be a decline but it might get arrested around 5800 or at the worst 5750 levels. Strong resistance will be witnessed around 6000 levels. Hence for the next one month, market might trade between 5750 and 6050. It will be extremely choppy and volatile to say the least.

The strategy for the short term would be to trade only on an intraday basis with tight stop losses and invest only for long term. Positional trading should be avoided because of volatility and gapped openings.

Markets on 22 Nov - Nifty Bounces Back

Nifty bounced back strongly to regain level of 6000. After a slightly positive opening, market traded nervously around 5930 for 2-3 hours before gaining strength and momentum as the day progressed. The second half was particularly convincing for bulls as Nifty moved past 5960 and then 6000. Recovery was led by IT, Autos and Banking stocks and later it spread to almost all sectors. Fertilizer stocks however were under pressure and were amongst the biggest losers. S Kumar’s was the biggest gainer amongst the derivative stocks as it zoomed up by more than 12%. Other major gainers were Uco bank, Triveni, Havells, Ruchi Soya, Indusind bank, Srei Infra, KFA, IDFC, Dena Bank, Escorts, Wipro, JP and Kotak bank. 
 

Nifty came close to 5900 during the day but managed to sustain above that and staged a smart recovery to close more than 2% higher at 6010. 5930-5950 again becomes a crucial and significant support in the short term. Market has been making these one day kind of moves and it would be difficult to call a bottom for now but probability is on higher side that we may have hit a credible bottom on Friday. 6040-50 is the next level to watch out for as it did provide resistance last time around. So, broadly we are looking at 5930 as a support on the downside while watching out for 6050 to provide some resistance. Sustained move past 6050 would further confirm the analyses that uptrend has indeed resumed. Tata Steel looks bullish above 625 and might challenge the resistance at 650-55 again. In number of stocks 3-day bullish set-ups are in place now and would be confirmed over next couple of days. The list includes Havells, KFA, Indisind Bank, Escorts, REC( above 366), Jain Irrigation( above 220), Exide( above 170) and Can Bank.

 Nifty has support around 5960-70 and then around 5925-30 while fresh momentum is likely above 6050.

Matching a Trading Style to Your Personality

If there is one SINGLE factor which is extremely crucial in determining whether an individual would be successful in making money as a trader/investor, it mainly depends on one’s chosen method that is consistent with one’s own personality and within their comfort zone. Virtually every successful trader/investor that I am familiar with has ultimately ended up with a trading/investment style suited to his / her own personality.

I have learnt from my own experience and it is my firm belief and strong conviction that there is no trading system that comes ready-made, one size fits all. There are so many trading styles that successful traders have adopted and the first thing a prospective trader or a trader after a few years of trading should do is to conduct a self- personality assessment to find out the specific approach that one is comfortable with. This according to me is the single most important factor that separates winning traders from losing traders.

Each trader must select the right market (equities, commodities, currencies), choose between discretionary trading and system trading, fundamental or technical methods, duration of trading (intraday , swing, positional or spread trading), aggressive and conservative styles, and so on and so forth. For all of these diametrically opposite choices, one should make the right selection that matches his/her individual personality so as to avoid internal conflict which might prove to be disastrous. At the end it seems that majority of the traders would have done this homework beforehand but in reality rarely does one seriously select a method that is in sync with one’s own personality. In a general sense, it is remarkably common for traders to adopt methods entirely unsuited to their personalities.

Instead what I find in the market place is traders who are good at system development end up consistently interfering with their own systems and overriding it due to lack of discipline that might often lead to disastrous results. There are traders who buy stocks with an intraday horizon and end up keeping them in their long term portfolio due to incapability of booking losses. For them, a long term investment is a short term trade gone wrong. It is noticed that plenty of investors who are naturally inclined towards searching for potential long term ideas end up instead doing short term trading because of emotional weaknesses like impatience or a habitual compulsion to be in a hyperactive need of consistently doing something in the market. There are several naturally born floor traders or screen readers who have great intuitive skills but abandon their special talent while listening to the loud opinion of the market which always turn out to be wrong at a very critical juncture. At the extreme end, one will also find plenty of theoretically oriented traders who after a lot of hard work develop intricate, low-risk arbitrage strategies but instead of putting them into effective practice they decide to become positional trader which is an approach that requires a different degree of risk acceptance far beyond their comfort levels. It is not uncommon to find investors loaded with momentum stocks in spite of having an aversion to volatility. Also it is uncommon to find investors holding on to value stocks (bought on tips) when they have a natural inclination for instant gratification which momentum stocks provide.

In all the cases mentioned above, one thing which stands out very clear is that, traders/investors with a natural bent for one style of trading/investing end up using a diametrically opposite style, usually to fulfil some emotional need which unfortunately they are not even aware of. To put it rightly, the need to match personality and trading style may be a matter of simplicity and common sense but it is certainly not common.

One should be aware of the following observations about one’s own personality to find out the right approach that would suit him. If you can’t stand to give back significant paper profits, then you are totally

1.      Unsuited for a long-term trend following approach. Even the best long term trend following system will be a disaster because you will never be able to follow it.

2.      If you can’t stay away from the screen, then investment will never suit you. Instead you should be day trading.

3.      On the other hand if you don’t want to watch the quote monitor, forget about intraday trading.

4.      If you can’t stand the emotional strain of making trading decisions, then focus on a mechanical trading system.

5.      If you cannot handle the uncertainty of overnight newsflow, then you are suited only to be a daytrader.

In a nutshell, the approach you use must be right for you; you must be comfortable following it. The importance of this cannot be overemphasized. Incidentally, it is because of this singular reason of mismatch of trading style and personality that purchased trading systems rarely make profits for those who buy them, even if the system is a good one. The odds of getting a winning system may be reasonable but the odds of getting a system that fits your personality is very little. System traders cannot create a system that fits everyone’s personality.

How does one find a system that is in sync with his personality? Given below is a list of questions whose honest answers will help a trader/investor to select a system suited to his personality.

1. What is my greatest weakness as a trader/investor?
2. What is my greatest strength as a trader/investor?
3. What do I find most interesting about trading/investing?
4. What do I find least interesting about trading/investing?
5. Can I handle drawdowns?
6. Do I have the patience to sit on stocks?
7. How much effort (time and money) am I willing to commit to trading/investing?
8. Should I trade as per a mechanical system or a discretionary system?
9. Can I handle volatility?
10. What all should my ideal system contain?

As one introspects and carefully answers the above questions and evaluates, it should become clear to you exactly what you will need for your system to be successful. Knowing one’s personality type and the specific idiosyncrasies of one’s temperament is the piece that will round out the ultimate success of your trading puzzle.

D Prasad is a Chartered Accountant and is in stock market for the past 15 years both as an investor following fundamentals and also as a trader following technical analysis. He is very well read on the subjects of Trading Psychology and Behavioural Finance. He is a partner of Equity Strategists which is an Investment Advisory firm providing Daily Newsletter and SMS Advices to traders, investors and brokerage houses. He is a regular invitee on business channels like NDTV Profit, UTV Bloomberg, CNBC Awaaz, ET Now, Zee Business and TV5. He can be reached at dvprasad1965@gmail.com

The Markets on 18 Nov 10 - Volatile Nifty

Nifty was extremely volatile as market and stocks reacted to a host of rumors floating around in the marketplace. It was a slightly bullish opening as Nifty opened well above 6000 but swung wildly as the day progressed. 2G spectrum scam dominated the proceedings as did the banking exposure to MFIs. Both hit the banking stocks negatively as Bank Nifty plunged over 3% at one point of time. Nifty too made a new recent low at 5906 before staging a smart comeback mainly on buoyant global cues. But broadly, domestic events took a centre stage and most of them were negative. Rumors that PM is stepping down aided to the nervousness. Banks were the worst hit as heavyweights like ICICI, Axis, SBI and HDFC Bank witnessed selling. Volumes were heavy in most banking stocks. However, on the positive side metal stocks turned positive mostly on positive global cues. So, strong buying was witnessed throughout the session in stocks like Hindalco, Tata Steel, JSW Steel and Sterlite. Pharma stocks too were active on the positive side as buying was seen in Cipla, Lupin and other pharma counters. Some of the other prominent gainers were Bata, Hero Honda, Bhushan, TVS Motors, GMDC, Jet Airways, Bharti, IOB, Auro Pharma and Ashok Leyland. RCom was the main loser amongst the derivative stocks and despite recovering almost 50% of its intraday losses ended the day around 5% lower. Some other losers included Ruchi Soya, Noida Toll, Unitech, Reliance Cap, Escorts, Rolta, Syndicate Bank, ABG Ship and Indusind.
 

Nifty broadly followed the scenario given yesterday. Only point missing that could have convincingly tilted the balance in favor of bulls is the fact that Nifty couldn’t move past 6000. Sustained trades above 6040 could firmly tilt the balance and one should start building fresh positions again in strong counters. Going by the session’s behavior it looks that stocks like IDBI, Tata Steel, Auto stocks, Cipla, Hindalco, Sesa Goa( keep a stop below 325), Jet Airways, KFA, JP( Stop loss below 116), Voltas and Crompton, to name a few are showing good interest at lower levels.

Nifty has support around 5940-50 and then around 5870 while resistance is likely around 6050.

Markets on 17 Nov 10 - Nifty Collapse

Nifty collapsed in the midsession after a relatively quiet start to the day. The sell off was once again across the board as basket selling was seen in Nifty counters. Nifty tried to stay above 6040-50 but weight of selling ensured a steep decline below 6050 and even below 6000. Nifty collapsed to 5970 before staging a weak rebound to close below 6000 at 5988. Nifty seem to be crucially poised at current levels as the levels of around 5950 have been providing support for past 10 weeks now. Any sustained trades below 5950 would fuel further unwinding and forced bull liquidation. The global cues continue to be negative and there have been renewed fears of Euro zone panic as well as some emanating from China. Next couple of days of trade could be significant and provide cues for future direction. In our view, intraday panic might see Nifty breach the levels of 5940-50 and might even see it drift to around 5875-80. But as of now it seems that market is likely to see a significant rebound and might not see a close below 5950. This volatility could be used by big position players to roll over their positions to next series. In case of the above scenario works out it would be prudent to wait for Nifty to rebound above 6000 to build small positions in resilient and stronger stocks. 
 
Nifty has support around 5940-50 and then around 5870 while resistance is likely around 6050.

Markets on 15 Nov 10 - Banking Stocks Lead Rebound

Nifty opened on a cautious note and looked shaky for the first few hours. There were bouts of selling during the session that repeatedly took Nifty to around 6050. Banking stocks, expectedly led the rebound as heavyweight banking stocks like SBI, ICICI and HDFC bank attracted buying since morning. The rebound gathered some momentum in the last 90 minutes as the buying spread to some other sectors like metals, pharma and FMCG too. Realty remained under pressure. SBI was the biggest gainer amongst the Nifty heavyweights as it gained over 4.5%. Other significant gainers amongst the derivative stocks were Syndicate Bank, Srei Infra, Orchid, Jet Airways, Cipla, Vijaya Bank, PTC, Dena Bank, IDBI, Uco Bank, Indusind Bank, Lupin and Escorts. Renuka Sugars came out with good numbers and was amongst the gainers. The ADA pack, however continued to disappoint and almost all group stocks with the exception of Rel Media were amongst the losers. Other significant losers were NFCL, Ispat, Orbit, Chambal, Triveni, Polaris, Pantaloon, Hotel Leela, BalramChini, IVRCL Infra and Unitech. Nifty managed to claw its way back above 6100 and closed almost 50 points higher at 6121.
 

Nifty found support at 6050 after looking a bit shaky for major part of the day. Significantly the banks have led the rebound and that prima facie augurs well for bulls. Bank Nifty was up almost 2.5%.  After a steep fall last couple of sessions it may not be prudent to suggest that Nifty has found credible support at 6050. But sustained trades above 6110 might take the rebound further to around 6150 and then around 6190-6200 where significant test is likely. Again Pharma and Banks could be the better ones to play on the long side. HDFC Bank could move further to around 2425 while some others like IDBI( above 195), Uco Bank( above 149), DCB and Indusind Bank could see decent upside form current levels. Cipla has shown strength post results and the 326-330 band has emerged as a strong support. It could try and challenge the supply zone of 358-363 again. But overall, it would be better to play this rebound with caution and maybe in smaller quantities.

 Nifty has resistance around 6150 and then around 6190.

Track Record - Major Buy/Sell Recommendations in Oct 2010

Reco. Date	Scrip	Reco. Price	Target Price	Remarks
22/10/10	RAYMONDS	378.35	458	TARGET ACHIEVED
12/10/10	CHAMBAL FERT	82	92	SECOND TARGET HIT ON 14/10/2010
11/10/10	ARSHIYA INTER	283	363	BOTH TARGETS HIT ON 12/10/2010
01/10/10	JYOTHI LAB	298.25	321	TARGET ACHIEVED

The Markets on 12 Nov 2010

It was a tough day for bulls as market headed southwards after being in a sideways mode for past few sessions. It was a slow grind mid session but the downward momentum picked up in the last 60 minutes as Nifty decisively slipped below 6250. All round selling accounted for weakness in Nifty that fell to as low as 6180 during the day. DLF lost over 4% while other significant Nifty losers were JP Associates, Cipla, Bharti, Bhel, TCS, Tata Motors, RIL, HDFC, Wipro and HDFC bank. As the list suggests all major sectors were affected by the negative sentiments. These sentiments were probably triggered by huge selling by FIIs in Korean market.  Standout stock of the day was RPower that powered its way almost 10% higher on huge volumes. Company has managed to get international financing at extremely reasonable interest rate. Then there were stocks like Lupin, Indusind Bank and LIC hsg that  reacted positively to inclusion in MSCI. Some other gainers were Bata India, ICSA, Hindalco, Syndicate Bank, Uco Bank, Tata Power, DCB and Reliance Infra. Mid caps too cracked in the later stages and shed significant weight. 
 

Nifty did breakout of the range of past few sessions but the direction was not as per our expectations and analysis. Nifty broke down below 6240 and in fact almost reached the targets for this breakdown during the day itself. The technical targets for range breakout was about 70-75 nifty points (around 6170). Now, the 6145-6170 band assumes a lot of significance for Nifty as the current breakout occurred above 6150. While an intra-session breach of 6140 cant be ruled out completely, inability to sustain and close above 6150 could put the current leg of rally in serious doubt. We believe that for markets to scale new highs stocks like RIL, HUL, Tata Steel and ICICI would have to assume leadership. RIL has strong short term support at 1065-70 while HUL sees a significant breakout beyond 315. 

Nifty has support crucial support around 6150-70 while resistance would be seen around 6250-60 and then around 6310.

The Markets on 11 Nov 2010

Markets remained in a sideways/consolidation mode as Nifty traded in a narrow band of about 40 points. Tata motors zoomed to higher levels in early trades reacting to its better than expected numbers. It gave up some of its intraday gains on profit taking but still managed to close above Rs 1300. SBI, on the other hand struggled as stock continued to adjust to its lower than expected results. Another heavyweight Bharti was also under pressure post results and was one of the main drag on the indices. It was a dull or mixed day for the heavyweights and it were the mid caps that provided all the excitement. Titan added another 8% to move above Rs 4100 while Shipping stocks were also in demand. Some of the prominent gainers for the day were 3i infotech, Bata, Bombay dyeing, HCC, MLL, Sun TV, ICSA, Renuka, Alok, Tata Global, Ind Hotels, M&M, Bharat Forge, Sintex, Apollo Tyres and Hotel leela. List of losers comprised of Colpal, Chambal, Onmobile, Divis Lab, Crompton, Ambuja, Jindal SAW, Ranbaxy and Core.
 

Nifty seems to be trapped between 6250 and 6320 as of now but narrow day today suggests that Nifty could be moving out of this range in couple of sessions. Probability of breakout on the upper side is greater as of now and we maintain short term targets of around 6420 for Nifty. Autos continue to display strong momentum and stocks like TVS, Escorts, M&M and Ashok Leyland could move up over next few sessions. HCC is again witnessing some buildup and could head towards Rs 70-71 where it faces strong resistance.

 

Nifty has immediate support around 6250-65 and then around 6210-15 while fresh momentum is seen above 6320.

The Markets on 10 Nov 2010

It was a choppy day for the markets as Nifty moved up and down through out the session. After a neutral start market moved higher but gave up all its gains immediately and traded in negative territory. Strong buying in index heavyweights like HUL, ICICI, Infosys and TCS lifted Nifty above 6300 in the last 30 minutes of trade. SBI was the main drag on the indices as stock witnessed strong profit taking after disappointing Quarterly numbers. IDFC too moved lower post results. Aviation stocks were in fly mode as Jet Airways zoomed up by more than 10% while KFA too posted strong gains. Fertiliser stocks found fresh momentum as strong gains were seen in Chambal, GSFC, NFCL, Deepak Fert and GSFC. Some other smart movers for the day were IBReal, TVS Motors, SKumars, Petronet, Power Grid, Alok, LIC Hsg, Crompton, BOI, Core, Can bank, Dabur, GVK, MRPL, Dena Bank, Indusind and HDFC bank. Losers included Srei Infra, Patni, JSW Holding, Indian info, Hind Zinc, IVRCL Infra, GMDC, BGR Energy, BOB, IGL and APIL. 

 

Nifty closed above 6300 after dipping to around 6240 during the day. Strong close after a sluggish session suggests that market might be ready for taking out the previous peak after a couple of days of consolidation. It might move all the way towards 6400-6420 soon. HUL made a strong move and made a new 10 years high. Technically, stock continues to look very strong and could be headed much higher from current levels over next few weeks. After Alok Ind, SKumar’s seems to have broken out. Sustained trades above 86 could take the stock higher to around Rs 104-106 in next few sessions. Indusind bank and BOI have are also showing positive intentions after brief consolidation and could see decent upside.  Few others that look positive are Ultratech, Lupin, Unitech and MRPL.

Nifty has immediate support around 6250-65 and then around 6210-15.

The Markets on 09 Nov 2010

It was a typical hangover day as markets re-opened after diwali blast. The energy was missing and that was evident in the index movement. It was lackluster to say the least mostly on account of lack of any substantial activity. There was some profit taking in IT heavyweights as well as OMCs. SBI too witnessed some selling ahead of its numbers. The commodities were at the centrestage as both soft commodity stocks like Sugar as well others like metals witnessed strong buying. Sugar stocks were amongst the biggest gainers of the day while significant gains were seen in TataSteel and Sterlite. Cement stocks continue to move higher and Ambuja cements hogged the limelight by moving to life time highs amidst heavy volumes. Some of the other significant gainers were Can bank, Chambal, HOEC, KFA, Hexaware, Divis Lab, Alok, RPower, IFCI and JP Associates. Losers included Mphasis, Power Grid, GMDC, IGL, Apollo Tyres, IVRCL, HDFC bank and Neyvelli.
 

 Nifty paused for breath just around the previous peak and shed some 40 points at close. The undertone remains bullish and we could be heading towards 6400 in coming sessions. Immediate support to Nifty is seen around 6240 and then around 6210. IFCI has given a fresh breakout above 76 and could be headed to around 85-86 in coming sessions. JP is interestingly poised and sustained trades above 140 could open up strong upside. Sterlite broke out of range of past 6-7 months and is looking good for another 12-15% rise from current levels. Tata Steel is also showing momentum and could be accumulated on dips for target of around Rs 670. Amongst others more upside is seen in Godrej Ind, KTK bank, IDBI, Exide, Triveni , HOEC and Chambal.

 

 Nifty has immediate support around 6260-70 and then around 6215-20 while some resistance is likely around 6420.