Last two trading sessions have seen the markets rally from the lows of 19100 as expected.
The sensex has yet again found good support at the 200 DMA.
On the upside from here, trendline resistance lies at the 19800 levels crossing which the sentiment should turn bullish and some short-covering should take place. This possibility is more on the back of short term indications from the RSI and the Stochastic indicators.
On the downside, the sensex should find some decent support at the 19100-19150 zone.
Towards the week-end, the volatility will be increasing due to the contract expiry cycle.
Sectoral outlook
Technically the Metal and Oil & Gas sectors have shot up in the past week and should continue further on the pack of positive momentum.
Also IT sector was rallied on the back of good results by HCL and TCS.
The BSE Consumer durables index is showing a negative divergence which indicates bearishness and caution.
The BSE FMCG index approaches the highs of 3800. A breach over the same will be positive for it. Companies like HUL, ITC, etc have given breakouts.
On the individual front,
United Phosphorous which was recommended earlier nears its target price of 163. Positions should be closed as the stock already is showing overbought levels.
HUL has given a breakout above the 288 levels. (note: these links are for the charts posted earlier that contain entry/exit and stop-loss prices)
Ranbaxy has given a breakout above the trading range after a minor pullback.
Hindalco has given a clear indication of continued bullishness with a GAP breakout from the inverted H&S pattern. – http://1.bp.blogspot.com/-RibXQen7r5Y/Ta3Afh4zdRI/AAAAAAAAAi0/dRHbq8JmTE4/s1600/2011Apr-HINDALCO-800x600.png
All old and new positions have a target of 232.
Trailing stoplosses for the same should be now placed at 208.
Pidilite Industries has also nears the target of 160.
But with the momentum seen in the stock, the new target set is 165. Also the stoploss is to be trailed to 147.
State Bank of India – After almost four months in a range, the stock finally seems to breakout from the current levels. The crossover of the 200 DMA also points to this.
Also from the news front, the recent move by RBI over relaxation of provisioning norms, and the scrapping of teaser loans by SBI itself is to boost its profitability in the days to come.
(refer to the chart for specifics)
VIP Industries: The stock has recently broke out of a major resistance zone with a huge volume spurt. It may test its lifetime highs of 800 in the coming days.
Shree Renuka Sugars
A breach of the major resistances and the strong indicators point towards a quick move to test the 200 DMA. This is a stock with high volatility – high returns.
Maxwell Industries
Finally a pick from the less known ones J.
Huge volume spurts in the past week and breach of the 200 DMA resistance and also strong indicator support points towards a possible upside. The price specifics are mentioned in the chart.
No comments:
Post a Comment