Profit booking and winding up of positions saw the index slipping up in a slow and steady manner throughout the day. The real damage came in the second half of the trading session when the key support level of 5870 of Nifty futures was broken. The weekend pressure and the truncated next trading week because of two trading holidays saw both investors and traders reducing the exposure in the markets. Nifty now can slowly drop to its first strong support level of 5790-5800 and from there onwards the future course of action will be dictated by the first quarter results. Infosys comes out with its results on 15th and till then we are of the view that Nifty will be range bound between 5700 and 5900 with a slightly negative bias. Instead of buying and selling breakouts and breakdowns, one should make a strategy of buying supports and selling rallies. Lot of stock specific action will be seen as we now entering the quarterly results season. Since there will be a lot of volatility during this period we would very strongly advise to trade in lower volumes.
Sunday, April 10, 2011
Profit Booking Sees Nifty Slipping
Thursday, April 7, 2011
Action Replay!!
Nothing much happened as far as Nifty movement was concerned as it traded around 5900 for most part of the session. It was almost a repeat of yesterday’s session as index heavyweights witnessed churning while momentum was concentrated within the non-index mid caps. Fertilizer stocks were in focus mid session as sudden burst of activity lifted most of these stocks. Chambal was up almost 9% on heavy volumes while others like NFCL, RCF and Tata Chem too gained significantly. The gainers list was almost completely made up of mid caps and included stocks like India Hotels, India Info, IVRCL Infra, Unitech, GMR Infra, ABG Ship, Tulip, Biocon, Hotel Leela, Triveni, Srei Infra, MLL, Aban and LITL. Cairn continued to lose ground as uncertainity hits its takeover by Vedanta. Sesa Goa too lost ground after gaining sharply over past 3 sessions. Some of the other losers for the day were Onmobile, NTPC, ONGC, OFSS, Bhushan Steel, TCS, Ultratech and APIL. Overall, the undercurrent remained positive despite a minor negative tick in the frontline indices.
Nifty continues to trade around 5900 and its been 4 sessions now that Nifty has remained in a tight range around 5900. We might see some movement either ways in a day or two as narrow range is most likely to be followed by expansion in this range. Dip below 5850 could mean a minor breakdown to around 5750-5770 while sustained trades past 5930-40 could mean a continuation of the uptrend to around 6050-6080. Meanwhile mid caps continue to make hay. GMR Infra broke out above Rs 42.50 and could be headed towards Rs 48-49. HPCL is showing positive technical pattern and could target Rs 385-390 over next few sessions. Tata Chem ( above 361) and HDFC could also seek higher levels. Sugar stocks are witnessing positive buildup and decent upside is likely in counters like Renuka, Balrampur and Baja Hind.
Nifty has support around 5840-50 and then around 5770 while fresh upside momentum is likely above 5935.
Wednesday, April 6, 2011
Markets See A Positive Momentum
Market opened on a positive note and promptly made a new recent high just around 5950. But again some sector churning and some profit taking mainly in the heavyweights was witnessed at higher levels. Nifty traded just around 5900 for most part of the day as yet again activity was concentrated mainly in the non-index counters. Some of the counters and sectors that have been laggards for long were in a catching up mode. Infra and Realty stocks were the prime examples of this phenomenon. So, some of the top gainers were HDIL, LITL, Unitech, NCC and HCC. Suzlon also attracted huge volumes as it gained around 8%. Some others amongst the top gainers were Polaris, Rolta, TV18, Sterlite Tech, PTC, Mcleod Russell, Sobha, KFA, Sesa Goa and REC. Profit taking dragged some of the counters that had seen strong run up over past few days. The list includes Idea, Cairn, Pantaloon, Wipro, Chambal, Tulip, Onmobile, OBC, LIC Hsg and ABG Shipyard.
Nifty remained in a consolidation mode even as broader market saw positive momentum. Polaris that was mentioned couple of days earlier has seen a strong breakout amidst huge volumes. Pattern suggests decent upside over next few weeks and one can accumulate it on dips for potential targets of around Rs 235-240. LITL has also moved out of consolidation mode and might see another 12-15% upside. Few others that could seek higher levels are IGL, Tech Mah, Aurobindo( above 205), Rolta, DLF( above 274), PFC, HCC and TV18.
Tuesday, April 5, 2011
Mid Caps Join The Party
Market encountered some profit taking at higher levels as Nifty saw intraday dip to around 5850. But, strong momentum helped indices to recover all its intraday losses as Nifty bounced back to close above 5900. The mid caps and small caps extended their rally by one more session. Banking heavyweights led the dip earlier in the day as stocks like HDFC Bank, Axis Bank and ICICI witnessed some selling pressure at higher levels. But, the mid cap banking names attracted strong trading interest as stocks like Vijaya bank, Andhra bank, Uco Bank, Dena Bank, Syndicate Bank, IOB an Indian Bank moved up sharply on good volumes. In fact, the list of gainers was made up of mainly the mid cap counters. Onmobile extended its gains further as it surged almost 11%. Some other top gainers were Alok Ind, Patel Engg, Sesa Goa, Bajaj Hind, Moser Baer, Jindal SW Holding, Mundra Port and Tulip. HUL, M&M, DLF and Havells were amongst day’s top losers. Overall, the undercurrent was positive despite slight negative undertone in Nifty. Even Nifty did well to claw its way back above 5900.
There was some intraday hiccup in the ongoing up move as Nifty lost almost 50 points mid session. But strong buying in stocks like TCS, Tata Motors and metal heavyweights helped indices to erase all losses towards the close. Mid caps are beginning to join the party as traders get more confident about the upmove. Mid cap banks that look good for decent upside are Syndicate Bank, Indian Bank, Dena Bank, IOB and Allahabad Bank. JSW Steel has given a breakout on daily charts and is likely to target Rs 1040-1050. Others that have positive patterns are IVRCL Infra, PFC( above 254), L&T, Tata Motors and REC( above 261).
Monday, April 4, 2011
Markets On A Roll
It has been amazing week for India….markets were on a roll and Indian Cricket team has been on a roll too. Sensex continued to march northwards breaking all resistances while Indian cricketers moved past all resistances to lift the World Cup after a gap of 28 years. Well done, India and Congrats to Dhoni and team! Meanwhile, Nifty was up 3% for the week as it moved past 5800. Banks helped the indices earlier in the week while IT stocks lifted it towards the later half of the week. Markets have rallied almost 10% in last two weeks as FIIs have again turned positive on Indian markets. Although markets have moved past all resistances during past 10 days and that too without much sweat, it seems that indices could consolidate around current levels as small and mid caps do the catching up. This phenomenon was in play even on Friday as mid caps rallied sharply while mainline indices remained almost unchanged. Next week could also see stock specific moves than indices or large caps. Auto and Cement counters might react to the monthly sales figures. IT stocks have rallied ahead of quarterly numbers and now must consolidate before the results season is kicked off by Infosys numbers.
Monday, March 28, 2011
Nifty Makes A Smart Beginning For The Week
The week began on a happy note as markets had a steady day. In fact, Sensex as well as Nifty briefly went past the psychological level of 19000 and 5700 respectively. Autos, Capital Goods and Banks had a good day while some profit taking was seen in Healthcare, Metals and IT stocks. Index heavyweights that helped the indices move higher were Bharti, L&T, IDFC, Tata Motors and HUL. LIC Hsg however hogged the limelight by posting intraday gain of around 8% amidst huge volumes. Some other prominent gainers were Sterlite Tech, GT Offshore, Noida Toll, IDBI, LITL, IVRCL, TVS Motors, IRB, Dena Bank, Vijaya Bank, Sintex, Godrej Ind and Federal Bank. Auribindo Pharma was the biggest loser as it shed more than 6%. Some others that lost were Pantaloon, Piramal Health, Sun Pharma, Core, Jain Irrigations, Suzlon, Unitech and GMDC.
It was fifth successive day of gains for markets as Nifty moved towards 5700. In fact, Nifty has gained around 350 points over last 5 sessions. There could be a brief consolidation/resistance as market grapples with twin psychological resistances of 200DMA as well 5700/19000. 5735-5770 could provide stiff resistance to the uptrend and one need to be careful around these levels as far as long positions in Nifty are concerned. Stock- specific moves could hog the limelight even as indices consolidate/correct. The mid cap banking counters could see action as technically some of these like Andhra Bank, Federal, OBC, Uco and Dena Bank are looking positive. IFCI has given a breakout above 55 and could target Rs 61-62 if it sustains above 55. Auto stocks like Bajaj Auto, TVS, Ecsorts are also showing positive intent. LIC hsg closed at almost 4 months’ high and sustained trades above 215 could take it to around Rs 240-245.
Nifty faces stiff resistance around 5730-5750 while support is seen around 5620-30 and then around 5545-60.
Friday, March 25, 2011
Realty And Banking Lead The Way At the Markets
It was a steady day at the bourses as Nifty traded above 5500 for majority of the session. Decent showing was seen in almost all sectors with Realty and banking leading the way. Unitech was up almost 10% on very good volumes. Many mid caps again hogged the limelight. There was strong buying in stocks like Videocon, Orbit, IBReal, Sobha and Dish TV. Auto and metals also witnessed value buying at lower levels. Ashok Leyland, Hindalco, Welcorp and TVS Motors were the major gainers from these two sectors. Some other prominent gainers were Aban, Karnataka Bank, Pantaloon, IDFC, ABB, Tech mahindra, REC, GVK, Kotak and Yes bank. Some of the yesterday’s gainers met with profit taking and shed some weight. The list includes Tata Com, Lupin, Havells, GAIL and Renuka sugars.
Nifty gained for the third consecutive day which is a rare occurrence in the present volatile scenario. But, that also means that Nifty is now staring at strong resistance zone of around 5540-50. Nifty has not managed a close above 5540 in current month despite few attempts. Nifty has seen base building over last two months and as we did mentioned earlier also, close above 5540 and then a decent follow up could open up 150-200 points upside. Again, banks are the key and Bank Nifty is on the verge of a sharp and strong breakout above 11200. Realty counters are showing interesting patterns and stocks like Sobha, HDIL, Orbit, IB Real and Unitech could see substantial upside once they manage to sustain current levels. Dish TV closed above Rs 64 and could target Rs 71-72 over next few sessions. Ambuja Cement managed to close above 133-135 resistance zone after a gap of about 10 weeks and likely to target 146-149. Banks that have bullish patterns are Kotak, Indusind and Yes Bank.
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