Archives : Bullish Momentum To Continue - 12/12/2008

BULLISH MOMENTUM TO CONTINUE – 12/12/2008. 

The Sensex achieved the first target of Bullish Head & Shoulder breakout at 9669 and now is on the way to achieve the second target of 10501. The way the market bounced back from lower levels was remarkable to say the least.

INDUSTRIAL RECESSION HAS STARTED.

SENSEX.

For the week ahead the Resistance is at 9911-10050-10239-10501. Support is at 9281-9095-8894-8467.

NIFTY.

For the week ahead, the Resistance is at 3040-3161-3218-3254. Support is at 2812-2714-2570-2502.

LAST WEEK’S RECOMMEDATIONS:

Buy REL 532 Tgt was 612 Reached 664.

Buy Adlabs 163 Tgt was 189 Reached 189.

Buy TTML 20 Tgt was 22 Reached 21.

Buy Divis Lab 1226 Tgt was 1249 Reached 1264.

Buy Tata Motors 153 Tgt was 171 Reached 173.

Buy GVK Power 18 Tgt was 21 Reached 21.4

Buy Alstom Proj 241 Tgt was 255 Reached 260. 

THIS WEEK’S RECOMMENDATIONS:

Buy REL CAP 531 SL 512 Tgt 546-564-604. 

For More Recommendations and To Read Full Article Press More.



BULLISH MOMENTUM TO CONTINUE.– 12/12/2008. 

The Sensex achieved the first target of Bullish Head & Shoulder breakout at 9669 and now is on the way to achieve the second target of 10501. The way the market bounced back from lower levels was remarkable to say the least.  

INDUSTRIAL RECESSION HAS STARTED. 

The market was confronted with a mixed set of data, with the falling inflation and a shocking negative IIP number. This confirms the start of Industrial Recession in India. The inflation figure, which continued its downward slope, came in at 8% as compared to 8.4% the previous week. With the economy on the edge of a slowdown, the chances appear to have increased for a further easing of the interest rates. The other set data was an extremely poor set of data. The IIP number came in at -0.4%, for the first time in 10 years and only the second time in history, the figure was negative. The main culprit being the manufacturing sector output, which came in at -1.2%. The main reason is the drying up of liquidity. The manufacturing sector is one of the worst affected by the lack of liquidity  Thus the market reacted initially, but bounced back immediately as it became clear that the government will again act and provide for more in the second part of the economic stimulus package. 

SENSEX. 

Sensex opened the week at 9276, made a high of 9746, made a low of 9095, and closed the week at 9690, thus registering a weekly gain of 725 points.

The Sensex has formed a bullish white body on weekly charts almost resembling a closing white Marubuzo which indicates bullishness for the coming week.

Sensex which had given a Bullish Head & Shoulder breakout, has achieved its first target of 9669 and is now progressing towards achieving second target of 10501.

The indicators are showing further momentum. The MACD is on the verge of moving into positive territory. The ROC is already positive and is rushing upwards.The RSI, for the first time since September, has crossed and closed above the momentum mark of 50. In the process, it has given a Bullish Head & Shoulder Breakout. The RSI pattern formation is a precursor to the pattern formation on the price chart. Hence, we can expect Sensex to move up substantially.

Sensex has given a strong Trendline breakout which resembles a Triangle breakout. The Trendline Resistance is at 9853-10767 and Trendline support is at 9415-8921. 

For the week ahead the Resistance is at 9911-10050-10239-10501. Support is at 9281-9095-8894-8467. 

NIFTY. 

Nifty opened the week at 2714, made a high of 2945, low of 2714, and closed the week at 2921. The weekly gain was 207 points.

Nifty has formed Bullish Marubuzo on the weekly charts. This will provide strong positive bias for the next week.

The Nifty which had given a Bullish Head & Shoulders Breakout is almost nearing to achieve its first target of 2972 and then proceed to achieve second target of 3218.

The MACD & ROC are showing continued bullish momentum. The RSI after 3 months is above 50 and has given a Bullish Head & Shoulder breakout. This indicates strong momentum for the Nifty in the week ahead.

The test for Nifty will be at 3040, which is the 50 DMA. This Resistance coincides with the previous higher bottom of 3046. When the Nifty breaks above 3046, one can expect a strong upsurge towards 3161-3198.

The Nifty was on the verge of giving a Trendline breakout but was not able to do so. The Nifty will gain momentum when it breaks 2945.The Trendline Support is at 2742-2688 and the Trendline Resistance is at 3198.

The O.I. PCR is at 1.36 which indicates bullishness. The Nifty strikes of 2800 & 2500 are witnessing heavy Put writing. This indicates strong support at 2800 and 2500. 

For the week ahead, the Resistance is at 3040-3161-3218-3254. Support is at 2812-2714-2570-2502. 

LAST WEEK’S RECOMMEDATIONS:

Inspite of the volatile week almost all the targets were achieved except TTML which fell short by just a Rupee!!! If one had bought 500 shares of REL, 2000 shares of ADLABS, TATA MOTORS, 10000 shares of TTML, 200 shares of DIVIS LAB, 20000 shares of GVK POWER, 1000 shares of ALSTOM PROJ, then one could have made a profit of 2,62,600/- in just a week.

  • Buy REL 532 Tgt was 612 Reached 664.
  • Buy Adlabs 163 Tgt was 189 Reached 189.
  • Buy TTML 20 Tgt was 22 Reached 21.
  • Buy Divis Lab 1226 Tgt was 1249 Reached 1264.
  • Buy Tata Motors 153 Tgt was 171 Reached 173.
  • Buy GVK Power 18 Tgt was 21 Reached 21.4
  • Buy Alstom Proj 241 Tgt was 255 Reached 260.

THIS WEEK’S RECOMMENDATIONS:

  • Buy REL CAP 531 SL 512 Tgt 546-564-604.
  • Buy Adlabs 186 SL 180 Tgt 194-199-211.
  • Buy Bombay Dyeing 182 SL 172 Tgt 194-204.
  • Buy L&T 788 SL 763 Tgt 820-850.
  • Buy RNRL 55 SL 51 Tgt 61-67.
  • Buy REL 650 SL 618 Tgt 676-702.
  • Buy RIIL 385 SL 364 Tgt 402-434. 

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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