Archives : NIFTY RECLAIMS 6000 - 04/01/2013.

NIFTY RECLAIMS 6000 – 04/01/2013.

NIFTY CONTINUES ITS UPWARDS JOURNEY.

The New Year started on a bullish note as the Nifty finally managed to close above the 6000 level for the first time since December 2010. After consolidating for around three weeks, both Sensex and Nifty have given a fresh Flag breakout. Thus in the short term, Nifty remains on course towards achieving the target of 6148 – 6192. In the medium term target remains 6415 - 6488. Any dip should be treated as a buying opportunity.

 


NIFTY RECLAIMS 6000 – 04/01/2013.

NIFTY CONTINUES ITS UPWARDS JOURNEY.

The New Year started on a bullish note as the Nifty finally managed to close above the 6000 level for the first time since December 2010. After consolidating for around three weeks, both Sensex and Nifty have given a fresh Flag breakout. Thus in the short term, Nifty remains on course towards achieving the target of 6148 – 6192. In the medium term target remains 6415 - 6488. Any dip should be treated as a buying opportunity.

TECHNICALLY SPEAKING. 

Sensex opened the week at 19422, made a high of 19797, low of 19406 and closed the week at 19784. Thus it registered a weekly gain of 340 points. At the same time the Nifty opened the week at 5901, made a high of 6020, low of 5897 and closed the week at 6016. Thus the Nifty went up by 108 points on a weekly basis.

Both the indices have registered a big White body Marubuzo on the weekly charts, and in the process confirmed the continuation of strong uptrend. On the daily charts, a small white body candle has been formed, with a long lower shadow. Since the candle is small it cannot be termed as a Hanging Man pattern. Overall Candlestick pattern analysis suggests continuation of bullishness.

When the Sensex closed the week above 19612 & Nifty above 5965, a Flag formation on the weekly charts got completed. The Flag pole started from a low of Sensex 18255 and Nifty 5548 and the targets as per this formation are Sensex 20969 and Nifty 6382. The targets will be achieved as long as Sensex remains above 19149 and Nifty above 5823.

The indices are well above the short term average of 20dma (Sensex – 19430 and Nifty – 5909), the medium term average of 50dma (Sensex – 19025 and Nifty – 5786), and long term average of 200dma (Sensex – 17781 and Nifty – 5397). Thus the trend in the short term, medium term and long term timeframes continue to remain bullish.

On the daily chats, both Sensex and Nifty have formed a Bullish Diamond pattern and the target as per this formation is Sensex 20171 and Nifty 6192. Also market had tested the Falling Channel Top and bounced back from there. Hence the overall long term target for Falling Channel pattern breakout remains intact. The targets as per this formation are Sensex 20383 and Nifty 6148.

On the weekly charts, both the indices have been moving higher in Flag formations and it had previously completed a Flag formation and the target according to the pattern comes in at Sensex 21024 and Nifty 6415. The targets will be achieved as long as the Sensex remains above 18255 and Nifty 5548. If we take the Saucer formation which is due to the fall from Sensex 18523 to 15748 and Nifty 5629 to 4770, then the target comes in at Sensex 21298 and Nifty 6488. Hence we have a Target zone of 21024 - 21298 on the Sensex and 6415 - 6488 on the Nifty.

Both the indices had bounced back from Sensex 18255 and Nifty 5548 which is within the Bullish Rising Gap between Sensex 18062-18284 and Nifty 5447-5526. This gap has acted as a strong support for the market even before as the Sensex had bounced back from a low 18291 and Nifty 5534. This gap holds more significance because a breach of this gap will signal the end of the current rally.

MACD has given a Buy signal this week and is positive. ROC too is positive and continues in Buy mode. The RSI has moved higher and is at 69, indicating that the bullish momentum is quite high. MFI too has moved above the equilibrium line and is at 66 indicating that the money has started to flow in. Stochastic Oscillator even though overbought (95) continues in Buy mode as %K is above %D. ADX has started to move up once again and is currently at 29 indicating that the uptrend is now gathering strength. The Directional Indicators continue in Buy mode as +DI remains above -DI. Meanwhile OBV too continues in Buy mode. Bollinger Band too has given a Buy signal on Tuesday. Thus the Oscillators are suggesting continuation of Bullishness in the short term.

The Nifty O.I. PCR is steady at 1.29. Highest Open interest build up for the January series has now shifted to 6200 Call and 5800 Put. This suggests that the market expects a trading range for the Nifty with support coming in at 5800 and resistance around 6200 levels.

Trendline Support for the Sensex is at 19438. Trendline Resistance is at 19811.

Trendline Support for the Nifty falls at 5908. Trendline Resistance falls at 6027.

For the week ahead, Sensex will find Support at 19491-19186-18862 and will find Resistance at 20022-20267-20538.

For the week ahead, Nifty will find Support at 5919-5823-5735 and will find Resistance at 6110-6199-6290.

INDEX LEVELS: 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

5735

5823

5919

6016

6110

6199

6290

Sensex

18862

19186

19491

19784

20022

20267

20538

LAST WEEKS RECOMMENDATIONS:

Once again it was an exceptional week where all the recommendations performed exceedingly well and reached their targets with ease. However the Star Performer of the week was Canara Bank which went up by more than 8% !!! 

STOCK

Reco. Price

Tgt

Reached

Lot Size

Profit

Buy OFSS

3279

3331

3352

125

Rs. 9,125

Canara

493

520

533

1000

Rs.40,000

Buy Wipro

392

401

405

1000

Rs.13,000

Buy LiC

292

299

300

1000

Rs. 8,000

Buy NMDC

164

169

171

2000

Rs.14,000

Total

Rs.84,125

THIS WEEKS RECOMMENDATIONS: 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy FinTech

1170

1143

1213

1259

Buy JainIrrig

79

77

83

88

Buy CenTex

448

438

463

479

Buy UCOBnk

84

82

88

93

Buy Sintex

70

68

74

79

WATCH OUT FOR:

Uco

Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

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