Sunday, January 30, 2011

View for the week (31/01/11 - 04/02/11)


No sign of a relief rally.
The week saw nifty correction sharply in spite of global markets rising / sustaining. We continue to be decoupled from the global scenario primarily due to severe FII selling through P-Notes. Nifty has now closed below all its key moving averages in daily charts. The fall has come with very small retracements, as as per broking houses many are trapped in cash buys at higher levels as most derivative longs have been squared due to m2m crises. Nifty needs to sustain above its 200 days moving average in order to see any relief rally. For the week we can witness short covering above 5590 while on the downside support comes in at 5400 as per option data. Nifty completes 62 days of its fall post Diwali and that is a key Fibonacci number. Hence, the week could show some kind of bottom formation and consolidation. Only if such patterns form, should long positions be taken, until then avoid aggressive long positions.
Support for the week comes in at 5380 / 5250 / 5040
Resistance for the week comes in at 5720 / 5930 / 6060


Stock Picks for the week.

HINDALCO (223)


In daily charts the stock has given a triangle breakdown. Derivative data suggest bull liquidation. Sell for a target of 210 with a stop loss of 232

PNB (1093)


In daily charts the stock which is trading below all its' key moving averages has given a descending triangle breakdown. Sell for a target of 1065 with a stop loss of 1110.

SESA GOA (330)

In daily charts the stock is struggling to sustain above its key moving averages and is seeing selling pressure nears its upper trendline. Sell for a target of 315 with a stop loss of 338.


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