Archives : ACTION SHIFTS TO MID-CAPS & SMALL CAPS - 14 11 2014

 ACTION SHIFTS TO MID-CAPS & SMALL-CAPS - 14/11/2014. 

NIFTY CLOSES JUST UNDER 8400.

.

It may not seem from the outside, but the market is getting more exciting as the action has picked up in the small-cap and mid-cap arena. The bearish candle pattern formed in the last week has been negated this week as the upward rally continues. As the ADX keeps on improving it is a clear indication that the uptrend is getting stronger. It is a clear uptrend in the short, medium and long term timeframe and hence any decline will provide a buying opportunity to the market participants.

 

 


 ACTION SHIFTS TO MID-CAPS & SMALL-CAPS - 14/11/2014. 

NIFTY CLOSES JUST UNDER 8400.

.

It may not seem from the outside, but the market is getting more exciting as the action has picked up in the small-cap and mid-cap arena. The bearish candle pattern formed in the last week has been negated this week as the upward rally continues. As the ADX keeps on improving it is a clear indication that the uptrend is getting stronger. It is a clear uptrend in the short, medium and long term timeframe and hence any decline will provide a buying opportunity to the market participants.

TECHNICALLY SPEAKING.

Sensex opened the week at 27919, made a high of 28126, low of 27764 and closed the week at 28046. Thus it closed the week with a gain of 178 points. At the same time the Nifty opened the week at 8337, made a high of 8415, low of 8304 and closed the week at 8389. Thus the Nifty closed the week with a gain of 52 points.

Bearish pattern formed in the last week (Bearish Doji) got negated this week as both the indices have formed a small white body candle on the weekly charts and also because Sensex closed above the level of 28010 and Nifty above 8365. On the daily charts both the indices have formed a pattern almost like a Bullish Harami but the only problem being it has formed in an uptrend, hence it cannot be considered as one. But both daily and weekly candlestick formations point towards continuation of bullishness in the near term.

Both the indices have left behind a Bullish Rising Gap between Sensex 27438-27390 and Nifty 8198-8181. This gap will not only act as a support but it can also be interpreted as a Measuring Gap and the target as per Gap Theory falls at Sensex 28918 and Nifty 8656.

Both the indices continue to remain above the short term average of 20dma (Sensex – 27223 and Nifty – 8132), medium term average of 50dma (Sensex – 26962 and Nifty – 8061) and even above the long term average of 200dma (Sensex – 24345 and Nifty – 7268). Thus the trend in the short term, medium term and the long term timeframe remains bullish.

MACD and Price ROC are both positive and continue with their buy signals. RSI @ 71 continues to remain overbought for the last two weeks and so does the Stochastic oscillator (%K at 91) which is overbought for the last three weeks. But both of them still continue to show strong bullish momentum. MFI (78) continues to show strength and suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 29, which indicates that the uptrend is getting stronger. Direction Indicators continue in buy mode as +DI remains above –DI. Bollinger Band continues in Buy mode. Except for certain Oscillators which are overbought, majority of the Oscillators are suggesting bullishness in the short term. 

Option data for the current series, shows highest Put Open Interest has shifted to the strike of 8300 and highest Call build-up has shifted to the strike of 8500. Thus Option data suggests a small trading range with support coming in at 8300 and resistance around 8500. On Friday, 8300 Put has seen strong Open Interest buildup which suggests immediate support coming in at the level of 8300.

Trendline Resistance for the Sensex falls at 28447.

Trendline Resistance for the Nifty is at 8519.

INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

8064

8181

8290

8389

8473

8564

8656

Sensex

26971

27390

27739

28046

28373

28645

28918

LAST WEEKS RECOMMENDATIONS:

STOCK

Reco. Price

Tgt

Reached

Lot Size

Profit

ABNuvo

1738

1878

1916

250

Rs.44,500

CoLPaL

1780

1885

2049

250

Rs.67,250

SunPh

894

932

932

500

Rs.19,000

Buy IOC

375

393

386

1000

Rs.11,000

AllCargo

281

306

317

1000

Rs.36,000

Total

Rs.1,77,750.

THIS WEEKS RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy JubFood

1466

1420

1537

1608

Buy Lupin

1443

1417

1484

1527

Buy AsianPaints

672

656

696

721

Buy Havells

308

296

327

347

Buy Voltas

271

266

279

288

WATCH OUT FOR:

Jubiliant Rect & Diamond

Asian Paints

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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