A quick round-up of the past week:
The Sensex closed down the week 312 points in the red over rising global issues of Japan, Political crisis in Libya, Bahrain and the 0.25% Rate hikes by the RBI (although this was much expected). The world watches on as Japan desperately tries to cool down the Nuc reactors to prevent meltdown and serious radiations. A look on the commodity front tells that base metals fell on speculations of decreasing demand from Japan temporarily.
The outlook ahead for the week remains bearish at least at the start of the week.
Technically the sensex is making a channel formation and heading towards the lower end of the channel as shown below. Thus the channel support shall lie at 17750. A probability of return back in the channel will get a nice 1K point move. Entry can be on any bounce-back. Long term support still lies at the trendline at 17K levels.
Of individual stocks,
the following stocks are where a divergence is observed where short trades in the coming week are possible.
Hindalco: The stock is testing its 200 DMA support line and the divergence observed indicates that it will be a good support level. Trades with a short term as well as long term initiative can be initiated
DLF: The stock is showing some good price support at these levels. It can be expected to get a good upside of 15-18 from current levels in the next week.
Renuka Sugars: Had blogged about this some time back. After breaking off its long term supports, a small pullback is due
Axis Bank: This one is making a triangular formation. Have included it in advance to watch.
The price specifics are in the chart
Infosys Tech: Infosys had broken off the long term support line and the DMA support last week
Prices broke down with a small Gap too. This is a BEARISH indication.
Tata Steel: Steel prices are rising internationally and the partial raw material captive supply of iron ore and coke could also boost margins for this steel major (vis-a-vis competitors) as the Japanese demand for steel to rebuild increases in the coming months.
Technically, the current prices have been sustained since past November. Multiple supports at this price level are made. Co-incidently the prices are testing the 200 DMA support too. So it seems to be a perfect timing to make a 2-3 month medium term investment
Patni Computers: This is a very speculative pick. With no movements in the price and the RSI & Stochastic indicators spurting, this one may be all set for a big intraday upmove anytime next week. The chances of testing RSI levels of 476 are more. But again its a very speculative bet
Thus to sum it up, there can be some more volatility in the broader markets in the coming week but individual stocks can perform better.
The Sensex closed down the week 312 points in the red over rising global issues of Japan, Political crisis in Libya, Bahrain and the 0.25% Rate hikes by the RBI (although this was much expected). The world watches on as Japan desperately tries to cool down the Nuc reactors to prevent meltdown and serious radiations. A look on the commodity front tells that base metals fell on speculations of decreasing demand from Japan temporarily.
The outlook ahead for the week remains bearish at least at the start of the week.
Technically the sensex is making a channel formation and heading towards the lower end of the channel as shown below. Thus the channel support shall lie at 17750. A probability of return back in the channel will get a nice 1K point move. Entry can be on any bounce-back. Long term support still lies at the trendline at 17K levels.
Of individual stocks,
the following stocks are where a divergence is observed where short trades in the coming week are possible.
Hindalco: The stock is testing its 200 DMA support line and the divergence observed indicates that it will be a good support level. Trades with a short term as well as long term initiative can be initiated
DLF: The stock is showing some good price support at these levels. It can be expected to get a good upside of 15-18 from current levels in the next week.
Renuka Sugars: Had blogged about this some time back. After breaking off its long term supports, a small pullback is due
Axis Bank: This one is making a triangular formation. Have included it in advance to watch.
The price specifics are in the chart
Infosys Tech: Infosys had broken off the long term support line and the DMA support last week
Prices broke down with a small Gap too. This is a BEARISH indication.
Tata Steel: Steel prices are rising internationally and the partial raw material captive supply of iron ore and coke could also boost margins for this steel major (vis-a-vis competitors) as the Japanese demand for steel to rebuild increases in the coming months.
Technically, the current prices have been sustained since past November. Multiple supports at this price level are made. Co-incidently the prices are testing the 200 DMA support too. So it seems to be a perfect timing to make a 2-3 month medium term investment
Patni Computers: This is a very speculative pick. With no movements in the price and the RSI & Stochastic indicators spurting, this one may be all set for a big intraday upmove anytime next week. The chances of testing RSI levels of 476 are more. But again its a very speculative bet
Thus to sum it up, there can be some more volatility in the broader markets in the coming week but individual stocks can perform better.
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