Archives : PULL BACK CONTINUES - 07/11/2008

PULL BACK CONTINUES – 07/11/2008

The market bounced back after falling down on Thursday because of disappointing inflation numbers. The inflation number for the first time after 4 weeks of continous decline came in higher at 10.72% v/s 10.68%.  The market almost bounced back from lows made on Thursday. On Friday, Nifty bounced back from 2860, which is the same low as on Thursday. The Sensex too bounced back from almost the same lows as that of Thursday’s.

  •   ALMOST RISK-FREE STOCKS:
  • SENSEX.
  • NIFTY.
  • LAST WEEK’S RECOMMEDATIONS:
 Three cheers to our readers as once again we hit jackpot. Almost all our targets are achieved with the Stars being HCC, TATA STEEL, and PUNJ LLOYD. Walchand Nagar is on its way to blast.
  • Buy HCC 41 SL 38 Tgt 49 REACHED 66!!!
  • Buy Punj Lloyd 174 Tgt 211 REACHED 215!!!
  • Buy I-Flex 607 Tgt 633 REACHED 659.
  • Buy Tata Steel 209 Tgt 243 REACHED 255.
  • Buy Jindal Steel 792 Tgt 830 REACHED 874.
  • Buy Rel Cap 652Tgt 772 REACHED 779.
  • Buy Walchand Nagar 122 Tgt 138 REACHED 134.
  • Buy Polaris 44 Tgt 49 REACHED 53.

If one had bought 400 shares of  I-Flex, Jindal Steel, Rel Cap, 1000 shares of Tata Steel, 2000 shares of Walchand Nagar, Punj Lloyd, and 5000 shares of Polaris, HCC then one could have earned a whopping profit of nothing less than Rs. 4,26,400/- !!!
  • THIS WEEK’S RECOMMENDATIONS:
  • WATCH OUT FOR:
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PULL BACK CONTINUES – 07/11/2008

The market bounced back after falling down on Thursday because of disappointing inflation numbers. The inflation number for the first time after 4 weeks of continous decline came in higher at 10.72% v/s 10.68%.  The market almost bounced back from lows made on Thursday. On Friday, Nifty bounced back from 2860, which is the same low as on Thursday. The Sensex too bounced back from almost the same lows as that of Thursday’s. 

 

  ALMOST RISK-FREE STOCKS:
BHARTI SHIPYARD (79): 
Book Value at 208 and P/B.V. is at 0.38, available at throw away price by heavy offloading by FIIs.FIIs had bought this stock with good growth prospects with a long term time horizon, but had to sell because of current global financial crises. 
Technically Speaking :
It has formed a strong Reversal pattern called Morning star on the weekly charts, and Bullish Doji star on daily charts.Current fall is from 337 on 18/08/2008 to low of 62.5 on 27/10/08. If one expects minimum retracement of the fall, then one could have a target of 127-166.Take this opportunity to enter the stock for a minimum target of 95-111-123. (Upside of nearly 75%).  
PTC (63):
Its face value is 10 and book value is 65. It has cash and cash equivalent of Rs.1450 crores.It has fallen from 201 to 43 and is currently at 63. Its cash value per share is Rs. 64 per share. In short it is almost free. It provides comfort to the investors as it limits the downside. It is a good bargain.
Technically Speaking:
In Daily chart there is a Flag break-out, and it has managed to close above 50 DMA.A Bull Gap in the weekly charts between 54 and 53.40 will provide strong support and fuel for the strong rally upwards. It has target of 81-86-92.

SENSEX.

Sensex opened the week at 10209, made a high of 10945, made a low of 9631, and closed the week at 9964, thus registering a weekly gain of 176 points.

The Pull back which started from the low of 7697 continues. The direction of RSI is now pointing northwards. The MACD too which had given a Buy signal, is still in the negative territory, but is now starting to move up.The Sensex in the current Pull back has tested the 38.2% Retracement of the fall from 15579 to 7697, which was at 10708 and the Sensex tested that level and went upto 10945 before falling again.Sensex returned from 10945, which is coinciding with the 30 DMA. For the Sensex to gain strength it must cross and close above 10945.

The Trendline Support is at 9582-9272 and the Trendline Resistance is at 10100-10482-10835.

 For the week ahead the Resistance is at 10166-10482-10835-10945. Support is at 9631-9582-9272-8894. 

NIFTY.

Nifty opened the week at 2885, made a high of 3240, low of 2860, and closed the week at 2973. The weekly gain was 88 points.

Nifty has formed a Bullish Harami pattern on Friday.The Nifty is correcting the fall from 4649 to 2252 and the correction levels are placed at 3168-3451-3783. Nifty went past the 38.2% level at 3168, upto 3240 and then collapsed.The Trendline Support is at 2584 and the Trendline Resistance is at 3068-3162.The O.I. PCR is at 1.17, better than that of previous week. This means that the market has good hedging positions, which will act as a cushion at lower levels.

Lot of Call writing is seen at the strikes of 3200 and 3400. These levels will provide strong Resistances going forward. Good Put writing is visible at the strikes of 2900 and 2500. These levels will provide support during a fall.

For the week ahead, the Resistance is at 3068-3162-3254-3335. Support is at 2860-2747-2583. 

LAST WEEK’S RECOMMEDATIONS:

Three cheers to our readers as once again we hit jackpot. Almost all our targets are achieved with the Stars being HCC, TATA STEEL, and PUNJ LLOYD. Walchand Nagar is on its way to blast.

  • Buy HCC 41 SL 38 Tgt 49 REACHED 66!!!
  • Buy Punj Lloyd 174 Tgt 211 REACHED 215!!!
  • Buy I-Flex 607 Tgt 633 REACHED 659.
  • Buy Tata Steel 209 Tgt 243 REACHED 255.
  • Buy Jindal Steel 792 Tgt 830 REACHED 874.
  • Buy Rel Cap 652Tgt 772 REACHED 779.
  • Buy Walchand Nagar 122 Tgt 138 REACHED 134.
  • Buy Polaris 44 Tgt 49 REACHED 53.

If one had bought 400 shares of  I-Flex, Jindal Steel, Rel Cap, 1000 shares of Tata Steel, 2000 shares of Walchand Nagar, Punj Lloyd, and 5000 shares of Polaris, HCC then one could have earned a whopping profit of nothing less than Rs. 4,26,400/- !!! 

THIS WEEK’S RECOMMENDATIONS:

  • Buy K S Oils 42 SL 39 Tgt 47-54.
  • Buy Gitanjali Gems 90 SL 84 Tgt 97-105.
  • Buy Ind Bull Real 157 SL 143 Tgt 167-178-185.
  • Buy Rajesh Exports 30.50 SL 28.10 Tgt 33-36-40.
  • Buy Tata Tele 16.00 SL 15.00 Tgt 17.40-20.00.
  • Buy GMR Infra 67 SL 63 Tgt 75-79.
  • Buy RiiL 428 SL 411 Tgt 453-488-501.
  • Buy REL 559 SL 528 Tgt 585-620.
 WATCH OUT FOR:

1. RAJESH EXPORTS 30, has given a strong Trendline Breakout from January high. It has formed a Bullish Reversal Morning Star Pattern. Buy with SL 28 for Target of 36-40. 

2. KS OILS 42, has given a Strong Trendline Breakout. It has a Bullish Morning Star Formation. Keep SL of 39 for a Target of 47-54. 

3. TATA TELE 16, has given a Bullish Inverted Head & Shoulders Breakout with good volumes. Buy with SL of 15, for Target of 17.40-20.00.

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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