Monday, September 20, 2010

View for the week (20/09/10 - 24/09/10)

Index has had a very strong week as it broke out above each and every strong weekly resistance. However, the breadth of the market turned negative with Advance Decline Ratio increasing in favour of Declines on daily basis. We have witnessed this week even the weakest of stocks reversing and trapping shorts, while mid caps have had a quiet week. Now almost every trader / investor who was bearish feels remorse that they are “missing the opportunity” to buy stocks. FII continue to buy in robust volume while DII remain sellers almost every session. With advance tax numbers giving out mixed signals, many stocks have already discounted results and are trading at very high levels. Nifty P/E is currently trading at 24. OI is at all time high in F&O while PCR is at 1.75 . Time will tell soon whether market is over-heated or over-bought. Nifty hourly charts indicate 5900 would be a double top only if nifty falls below 5814.Until then trade with strict stop losses stocks which are still rising.
Support for the week comes in at 5715 / 5545 / 5450
Resistance for the week comes in at 5980 / 6070 / 6240

Stock Picks for the week.

IFCI (61.05)

In daily charts it has given a breakout with volume and is trading above all its key moving averages. Derivative data suggests fresh long positions in it. Buy for a target of 64 with a stop loss of 59.40. The stock has potential to rise up to 75 in the medium term.


In daily charts it is moving in a rising channel with high volume activity. Derivative data suggests short covering in it. Buy for a target of 95 with a stop loss of 86.


In daily charts after making a series of lower highs and lower lows the stocks has shown a reversal candlestick. Buy for a target of 235 with a stop loss of 213. Investors can accumulate for a target of 350.

NIRMA (213) 
In daily charts after making a recent breakout with volume, the stock appears to have completed its pullback. Buy for a target of 225 with a stop loss 208. In the medium term the stock can target 275 its 52 weeks high

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About Me


All opinions are based on my technical study; however, I do not vouch for the accuracy or the completeness of the matter. I am not liable for any potential damages that may be incurred while acting upon any information mentioned in this report. The views expressed are not of binding nature. The report is intended for a restricted audience & I am not soliciting any action based on it. Please exercise discretion and due diligence in making your decisions. Investments in Capital Markets are not my obligation or guarantee and are subject to investment risks. In no event will I be liable for any damages, including without limitation direct or indirect, special, incidental or consequential damages, losses or expenses arising in connection with this report or use thereof or inability to use by any party, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation even if I am thereof, advised of the possibility of such damages, losses or expenses.