Indian markets continued to show weakness last week following global cues. The falling rupee and the Fed's cautionary stance on the US economy continued to have a toll on the global markets. The Nifty shed about 5% over the week (4% on thursday itself)
Technically, the outlook of the markets would be determined upon the testing of the crucial resistance of 4700 levels on the Nifty. The upside would be capped to 5030 levels.
As we can see in the above daily chart of Nifty, the markets sharply dropped out of the symmetrical triangular formation last week. It is likely that the 4700 levels should be tested in the coming week.
On the individual stock front, Amtek India Ltd and Maruti Suzuki show interesting formations.
Amtek India is showing a breakout of the Ascending triangular pattern formed over the past two months.
It may head to 138-140 very quickly. Stoploss should be placed at 114.
Maruti Suzuki is forming a rectangle pattern between 1050 - 1140 levels.
The sell off last week again brings it closer to the support of 1050.
Sustaining these levels could open up an interesting oppurtunity as the channel itself is 90-100 points. A breakout above the channel can take the target to 1225-1230 levels very fast.
On a broad basis, the recent fall in the Indian equity markets have brought many stocks especially mid-caps to attractive valuations. Banks, Realty, IT, Infrastructure (as usual) are clobbered a lot in the past month. But since the overall sentiment exists, bottom fishing appears risky. Will update on some more stocks in further posts.
Technically, the outlook of the markets would be determined upon the testing of the crucial resistance of 4700 levels on the Nifty. The upside would be capped to 5030 levels.
On the individual stock front, Amtek India Ltd and Maruti Suzuki show interesting formations.
Amtek India is showing a breakout of the Ascending triangular pattern formed over the past two months.
It may head to 138-140 very quickly. Stoploss should be placed at 114.
Maruti Suzuki is forming a rectangle pattern between 1050 - 1140 levels.
Sustaining these levels could open up an interesting oppurtunity as the channel itself is 90-100 points. A breakout above the channel can take the target to 1225-1230 levels very fast.
On a broad basis, the recent fall in the Indian equity markets have brought many stocks especially mid-caps to attractive valuations. Banks, Realty, IT, Infrastructure (as usual) are clobbered a lot in the past month. But since the overall sentiment exists, bottom fishing appears risky. Will update on some more stocks in further posts.
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