Stock tips
Weekly Stock Update
Nifty commenced the last week on a flat note but moved higher to test 4,900 levels during the week. It ended its winning streak after facing stiff resistance at 4,900 level and ended the week below this mark after failing to breach this level decisively. From here, Nifty is expected to move within a range as suggested by its technical indicators as they are giving no clear indications. Also, a high volatility is expected to be the order of the week ahead of the budget and F&O expiry. Strong movements can be expected on the last trading session of the week when the budget will be announced. It can move downwards until 4,750 levels where it has got a strong support and if this level is breached, it can move further downwards until its next major support at 4,650, around which it will also get the support from 200 days exponential moving average. Upside, it has a resistance at 4,950 levels and Nifty can move higher only after breaching this level.
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Stocks To Watch
AXIS BANK(Sell)
CMP 1100
Target Price 1032
Stop Loss 1134
Support/Resistance 1030/1100
Comment
- The stock has been rising steeply over the last few sessions and it is now expected to correct.
- Its momentum indicators are also supporting its downward move. Its RSI is close to the overbought zone at 63 levels and the stochastic has also entered the overbought zone at 82 levels, suggesting a downturn.
RURAL ELECTRIFICATION CORP.(F) (Buy)
CMP 213.2
Target Price 228
Stop Loss 205.8
SupportResistance 213/230
Comment
- The stock has been falling continuously from the last many sessions and it is likely to rebound from here.
- Its momentum indicators are supporting its upward move. Its RSI is close to the oversold zone at 31 levels, MACD is showing maximum divergence and it is about to give a buy signal by crossing above its signal line and the stochastic has also given a buy signal.
Domestic market began the week on a subdued note on worries the central bank may take more monetary action to check inflation after the latest data showed that the headline inflation jumped in January 2010. Monthly inflation rose to 8.56% in January compared to 7.31% last month. Indian benchmark indices recouped all the losses on the next day thanks to higher Asian and European markets. Domestic bourses climbed higher as
the week moved ahead with Nifty touching 4,900 level following strong global cues and speculation that global economy is on the path of recovery. Finance minister’s comments that the Indian economy may grow at more
than 8% in the fiscal year 2010-11, after growing at around 7.5% in the current fiscal year ending March 2010 also bolstered sentiments. However, the benchmark key indices snapped last two days’ winning streak as lower Asian stocks weighed on investor sentiment. Ascending food inflation also dampened the market moods back home. Indices dipped in red on the last day of the week as the US Federal Reserve’s decision to raise its discount rate hurt investor sentiment. Sensex closed the week at 16,191.63 up by 39.04 points (0.24%) while Nifty closed at 4,844.90 up
by 18.05 points (0.37%).
Nifty Weekly Top Gainers
Company % Return
Hindalco 8.43
Ranbaxy 6.55
HDFC Bank 6.00
Nifty Weelky Top Loser
Company % Return
Bharti Airtel -11.35
Unitech -6.15
Reliance Infra -5.67
Global Markets
US stock markets gained with higher margins during the week (till Thursday) as upbeat economic data and several strong earnings announcements bolstered the market sentiments. The markets also reacted to news from Merck, Hewlett Packard, Deere & Co and Wal-Mart, which reported better than expected earning. Investors bought into stocks after the positive economic data including producer price index, retail sales, industrial production, activity in the manufacturing sector and housing data. In other news, General Growth Properties Inc., the second-largest U.S. mall owner which filed for bankruptcy last year soared after Simon Property Group Inc., the biggest U.S. shopping-mall owner, offered to buy the troubled company.
Asian markets ended on subdued note during the week. Japan’s Nikkei 225 edged up but gains were limited by concerns over risk factors such as the impact of China’s efforts to curb bank lending and Greece’s fiscal woes. Hang Seng plummeted as lingering worries over China’s policy tightening prompted investors to take profits from the market’s recent rebound. China’s SSE composite closed during the week due to Lunar New Year holiday.
European markets surged significantly during the week. Markets started the week on a buoyant note posting gains on the back of financial and commodity shares. Positive US manufacturing data with higher crude and metal prices lifted the markets higher.
Further, better than expected earnings from Barclays, BNP Paribas, ING, ABB and Capgemini took the markets to 2 week closing high.
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Stock Tips For Today
If we take Fibbo level from 5300 to 4530, the correction that happened now touched 23.6% at 4700 and bouncing back.
The short trade on Saturday turned (a bit) good and closed above 4750, which in sense indicates a bounce till 38.2% level pegging at 4827. So longers can have an initial target as 4827 and if Nifty sustain at that point, we can see a bounce till 4914
If Nifty reverse from 4850 level, then the immediate target will be 4620 and selling pressure at those level will make the slide still deeper to 4530 and 4250.
Nifty may face resistance at 4790 and 4830 and 4852.
On the down side support at 4738 and 4721 are crucial once these are breached a new low is possible.
Intraday Calls
DLF(CMP.314)
BUY ABOVE 316 SL.311 TRGT.318,321,326
SELL BELOW 311 SL.315 TRGT.308,305,300
HDFC BANK (CMP.1572)
BUY ABOVE 1585 SL.1572 TRGT.1596,1601,1612
SELL BELOW 1568 SL.1582 TRGT.1560,1545,1540
HDIL (CMP.309)
BUY ABOVE 320 SL.317 TRGT.335,341,350
SELL BELOW 307 SL.320 TRGT.295,280,275
Buy CENTURYTEX
Around 475-477
Target 484-486
Stoploss 472
