Monday, November 29, 2010

View for the week (29/11/10 - 03/12/10)


Nifty post Diwali Mahurat session has been witnessing daily selling pressure correcting more than 10%. For the last 5 sessions it has been making lower highs and lower lows. The cause of such a fast and steep correction have been scams – 2G and LIC. Now that the immediate damage has been done (in some stocks to a very large extent) we can expect a small relief rally as market appears to be over sold in the short term. Nifty needs to sustain above 5820 for any rally. Above that we can expect strong resistance coming in at 5950. Try to use the rally to exit weak stocks and be more in cash as it’s still not clear whether a bottom formation has taken place or we can still see nifty trade down to 5600 / 5500 levels in the coming month. Also note that several stocks have broken critical supports with high volume, so recovery if any shall take a lot of consolidation or they might still correct further.
Support for the week comes in at 5290 / 5490 / 5620
Resistance for the week comes in at 5950 / 6150 / 6280


Stock Picks for the week.

ALSTOM PROJECTS (626)


In daily charts the stock has made a hammer after a strong correction at key support levels which indicate that the stock can see some consolidation / throwback before a clear trend emerges. Buy for a target of 660 with a stop loss of 612.

INDUSIND BANK (285)


In daily charts the stock appears to be trading with a rising channel. It is currently trading above all its key moving averages. Buy for a target of 302 with a stop loss of 275

SESA GOA (300)


In daily charts the stock has given a breakdown crashing below important support levels. Sell for a target of 286 with a stop loss of 310.

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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.