View for the week (13/09/10 - 17/09/10)

Nifty has had a fantastic week, albeit a short one due extended weekend. Not only has it made a new 31 months high, it has aided in mid caps surging ahead with sharp short covering and v big bullish candles. Over the last few months we have had mid caps out-perform large caps and the trend continues. This week have Advance Tax numbers for 2nd Quarter & RBI Policy review so we can see volatility and sector churning among institutions. Nifty gets support at 5565 and as long as nifty trades above 5510 there is still potential for upside as resistance comes in at 5660 / 5700. Trade long in stocks which are showing momentum and avoid bottom picking among stocks which are near all time lows, let them first show some consolidation.
Support for the week comes in at 5530 / 5420 / 5365
Resistance for the week comes in at 5700/ 5755 / 5865

Stock Picks for the week.

IND HOTELS (106)

In daily charts its trading above all its key moving averages and should rise in its major impulse wave up. Buy for a target of 110 with a stop loss of 104. The stock has potential to rise up to 118 if it sustains above 110.

JUBILANT ORGANOSYS (362)

In daily charts it has given a breakout with volume and is now trading above all its key moving averages. Buy for a target of 385 with a stop loss of 348. The stock has potential to trade above 450 in the medium to long term.

BPCL (751)

After a strong rally from 500 to 800, the stock has been an under-performer last week. With crude oil price rising sharply, the stock appears weak and can see further selling. Short for a target of 730 with a stop loss of 764.

SESA GOA (313)

In daily charts it continues to be weak and trades below all its key moving averages. With iron ore prices expected to fall further this year, the stock can see further fall. Short for a target of 304 with a stop loss of 319.