carao
10-12-2007, 06:38 AM
The stock market is in a volatile mode. A strong move above the 20-k mark is required to settle the matter in favour of bulls. Currently, we are trading above the falling channel.
However, a breakout from the falling channel would achieve a target of 20,238 as projected by parallel line for the week. At the lower side, the trend line moving upwards holds a curtail support level for traders. The weekly close of Nifty was at 5,974.
On the downside it has got support of 5,805 and 5,923, while on the upside it has a resistance at 6,092 and 6,210 levels for the whole week. Last week the Sensex closed at 19,966. On the downside it has support at around 19,836-19,577 and a resistance of 20,225- 20,480 on the upside for the whole week.
The Nifty last week crossed its previous high of 5,930 and closed at 5,974 making an all-time high on closing basis. However, Sensex is yet to cross its all-time high of 19,981 and has closed at 19,966.
Last week the Sensex gave a gap-up opening where Parabolic SAR has given a buy indication with a target of 20,238. If we take a look at the weekly charts, it is clearly evident that the market is on the verge of a break out only if the closing is above the level of 20,225.
On the lower side, the Sensex could touch support levels of 19,576, which is the 13-day exponential moving average. It is a good buying opportunity for the Sensex at this level which could be tested this week. Last week’s closing was not supported by volumes though the Sensex closed 117 points up over its previous trading day. This indicates profit-booking taking place at higher levels and no fresh buyers coming into the market.
The market-wide open interest of December futures series indicate that fresh short positions have been built up in the market. The open interest of Nifty December futures indicates fresh short in Nifty futures. Nifty futures PCR of open interest decreased from 1.35 to 1.23, indicating short positions have been built up in the market.
According to weekly pivot point, the Sensex support is at 19,188 and 19,577 levels, with pivot point of 19,836 while it has got resistance at 20,225 and 20,484 levels on the upside. The Nifty support is at 5,636 and 5,805, with pivot point of 5,923 while it has got resistance at 6,092 and 6,211 on the upside.
Sector watch
Telecom and power sector stocks have seen a correction, but there is a lot of upside left in these sectors. Our top picks in the telecom sector is MTNL and for the power sector it is Power Finance Corporation.
Information technology stocks are on the move and heavyweights like Infosystech have already given a break out. Our top pick in this sector is Financial Technology.
Pharma stocks are in a consolidation phase and heavyweights have already started rolling. Our top pick here is Matrix Laboratories.
Week’s Picks
▪ Buy MTNL (Rs 177) with a target price of Rs 197 and a stop loss of Rs 167.
▪ Buy PFC (Rs 268) with a target price of Rs 295 and a stop loss of Rs 254.
▪ Buy Financial Technology (Rs 2,400) with a target price of Rs 2,540 and a stop loss of Rs 2,330.
▪ Buy Matrix Laboratories (Rs 222) with a target price of Rs 232 and a stop loss of Rs 217.
▪ Buy Wipro (Rs 503) with a target price of Rs 532 and a stop loss of Rs 488.5.
However, a breakout from the falling channel would achieve a target of 20,238 as projected by parallel line for the week. At the lower side, the trend line moving upwards holds a curtail support level for traders. The weekly close of Nifty was at 5,974.
On the downside it has got support of 5,805 and 5,923, while on the upside it has a resistance at 6,092 and 6,210 levels for the whole week. Last week the Sensex closed at 19,966. On the downside it has support at around 19,836-19,577 and a resistance of 20,225- 20,480 on the upside for the whole week.
The Nifty last week crossed its previous high of 5,930 and closed at 5,974 making an all-time high on closing basis. However, Sensex is yet to cross its all-time high of 19,981 and has closed at 19,966.
Last week the Sensex gave a gap-up opening where Parabolic SAR has given a buy indication with a target of 20,238. If we take a look at the weekly charts, it is clearly evident that the market is on the verge of a break out only if the closing is above the level of 20,225.
On the lower side, the Sensex could touch support levels of 19,576, which is the 13-day exponential moving average. It is a good buying opportunity for the Sensex at this level which could be tested this week. Last week’s closing was not supported by volumes though the Sensex closed 117 points up over its previous trading day. This indicates profit-booking taking place at higher levels and no fresh buyers coming into the market.
The market-wide open interest of December futures series indicate that fresh short positions have been built up in the market. The open interest of Nifty December futures indicates fresh short in Nifty futures. Nifty futures PCR of open interest decreased from 1.35 to 1.23, indicating short positions have been built up in the market.
According to weekly pivot point, the Sensex support is at 19,188 and 19,577 levels, with pivot point of 19,836 while it has got resistance at 20,225 and 20,484 levels on the upside. The Nifty support is at 5,636 and 5,805, with pivot point of 5,923 while it has got resistance at 6,092 and 6,211 on the upside.
Sector watch
Telecom and power sector stocks have seen a correction, but there is a lot of upside left in these sectors. Our top picks in the telecom sector is MTNL and for the power sector it is Power Finance Corporation.
Information technology stocks are on the move and heavyweights like Infosystech have already given a break out. Our top pick in this sector is Financial Technology.
Pharma stocks are in a consolidation phase and heavyweights have already started rolling. Our top pick here is Matrix Laboratories.
Week’s Picks
▪ Buy MTNL (Rs 177) with a target price of Rs 197 and a stop loss of Rs 167.
▪ Buy PFC (Rs 268) with a target price of Rs 295 and a stop loss of Rs 254.
▪ Buy Financial Technology (Rs 2,400) with a target price of Rs 2,540 and a stop loss of Rs 2,330.
▪ Buy Matrix Laboratories (Rs 222) with a target price of Rs 232 and a stop loss of Rs 217.
▪ Buy Wipro (Rs 503) with a target price of Rs 532 and a stop loss of Rs 488.5.