Monday, October 4, 2010

View for the week (04/10/10 - 08/10/10)


Bull Mania!
After having a small retracement for the 1st half of the week mainly on account of rollover, nifty has had one of its strongest intra-day sessions. There has been widespread short covering as most retail participants have avoided the rally while Domestic Institutions have sold for the last 3 months to FII who have been buying relentlessly day after day. We are now witnessing fresh entrants in the form of retail who want to en-cash on stocks which are rising. As per derivative data Nifty 6000 puts have seen strong writing which indicates that now as a very strong support, while there has been hardly any Out of the Money Call writing so further rises should not be ruled out. Mid caps appear to be stronger and might outperform large caps this week.
Support for the week comes in at 6020 / 5900 / 5830
Resistance for the week comes in at 6210 / 6275 / 6400
 
Stock Picks for the week.

OPTO CIRCUITS (300)


In daily charts the stock has made a bullish hammer candle after a pullback. It is trading above most of its key moving averages. Derivative data also suggests short covering in the stock. Buy for a target of 310 with a stop loss of 294. The stock has potential to do a target of 340 in the short term.

JAIPRAKASH ASSOCIATES (124)


In daily charts it has made a bullish pattern. It is trading above most of its key moving averages. Buy for a target of 132 with a stop loss of 119.50. In the short term the stock can target 138.

UNIPHOS (182)


In daily charts its still in downtrend. Its trading below all its key moving averages.  Derivative data suggests fresh short positions. Sell for a target of 176 with a stop loss of 185.50.

TECH M (773)


In daily charts it is seeing selling pressure. Derivative data suggest profit taking. Sell for a target of 756 with a stop loss of 782.

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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.