Monday, January 24, 2011

View for the week (24/01/11 - 28/01/11)

Negative Mindset vs Trapped Leverage Traders.
The week saw nifty taking support nears its 200 days moving average. The bounce from there, however, has not been strong enough, rather its been very volatile. Mainly due to a negative mindset of investors / traders who now are only en-cashing stocks and due to trapped leveraged traders who went long without accepting stop losses who have run out of steam and are also waiting to book losses. Nifty needs to now sustain above 5690 in order to see short covering and take it up towards 5800 – 5850 levels which should be possible now with both RELIANCE & SBI coming out with better than expected Q3 results. Sustaining below it will be 3rd time testing of 5630 levels which it might break then will all probability to test 5550 levels. Volumes have been very poor so most moves either side have not lasted long due to lack of demand / supply. FII continue to sell aggressively pushing Rupee towards 46 to a Dollar. This is the last week of the settlement and we can expect volatility with nifty trading within a range of 5650 – 5850 on account of roll over.
Support for the week comes in at 5630 / 5565 / 5500
Resistance for the week comes in at 5755 / 5815 / 5880

Stock Picks for the week.


In daily charts the stock is showing consolidation within a triangle. Buy for a target of 445 with a stop loss of 419.


In daily charts the stock has broken out of a lower high lower low pattern. Derivative data suggest short covering. Buy for a target of 340 with a stop loss of 305.


In daily charts the stock has given a breakout. It is trading above all its key moving averages. Buy for a target of 138 with a stop loss of 125.


In daily charts the stock has given a breakout. Buy for a target of 110 with a stop loss of 102.50.

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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.