Archives : BULL DOMINATION CONTINUES - 31/07/2009.
BULL DOMINATION CONTINUES – 31/07/2009.  

Last week the market moved in the direction of the breakout for the second straight week. Inspite of being an expiry week, the market continued with its dose of volatility but finally managed to close higher. Better then expected results in Q1 by India Inc., falling inflation rate (negative for the seventh straight week) and short covering in the market were some of the key factors responsible for the market to rally.

  • SENSEX BEAKOUT, NIFTY BREAKOUT PENDING.
  • SENSEX.
  • NIFTY.

  • INDEX LEVELS:

  • LAST WEEKS RECOMMENDATIONS.

  • THIS WEEK’S RECOMMENDATIONS:
  • WATCH OUT FOR:

TO READ FULL ARTICLE CLICK 'MORE':


BULL DOMINATION CONTINUES – 31/07/2009.  

Last week the market moved in the direction of the breakout for the second straight week. Inspite of being an expiry week, the market continued with its dose of volatility but finally managed to close higher. Better then expected results in Q1 by India Inc., falling inflation rate (negative for the seventh straight week) and short covering in the market were some of the key factors responsible for the market to rally.

SENSEX BEAKOUT, NIFTY BREAKOUT PENDING.

  

As we mentioned last week, Sensex will have Bullish breakout if it manages to close above 15600 and it managed to do so. As the Sensex has closed at 15670, the Sensex will rally upwards and in the immediate term the targets are 16045-16976. These targets will be achieved only if Sensex continues to stay above 15600.

 

Nifty has closed at 4636 and has not given a weekly close above 4693 and hence a breakout is yet to be confirmed. The Nifty is likely to face resistance between 4693-4789. It will be interesting to see if the market can continue with its strong undercurrent of bullishness and give a breakout for the Nifty as well.

 

SENSEX.

Sensex opened the week at 15350, made a high of 15732, made a low of 14888, and closed at 15670, thus registering a weekly gain of 292 points.

Sensex has made a small body white candle on the weekly charts but with a long lower shadow. The long lower shadow was a result of buying pressure and short covering seen on Wednesday, when the Sensex bounced from the low of 14888. On the daily charts the Sensex opened with a gap on Friday and formed a Bullish White Opening Marubuzo.

The Sensex corrected on Wednesday before bouncing back from 14888 which was registered as a higher bottom as compared to previous bottom of 14786. Thus, the formation of higher bottom suggests further bullishness to continue. Hence, a short to medium term trend reversal will be signaled if the Sensex breaches the support of 14786.

The Sensex has given a breakout as it has managed a weekly close above 15600. The immediate target for Sensex will be 16045 which is the 61.8% retracement of the entire fall and the pattern wise target for the Sensex is 16038-17184.

 

The indicators are all in Buy mode and continue to suggest further momentum.

For the week ahead the Resistance is at 15789-16045-16457. Support is at 15499-15065-14786.

 

NIFTY.

  

Nifty opened the week at 4568, made a high of 4669, low of 4420, and closed at 4636. Thus the weekly gain was 68 points.

 

Nifty has made a small body white candle on the weekly charts but with a long lower shadow. The long lower shadow was a result of buying pressure and short covering seen on Wednesday, when the Nifty bounced from the low of 4420. On the daily charts the Nifty has formed a Bullish White Opening Marubuzo.

 

The Nifty corrected on Wednesday before bouncing back from 4420 which was registered as a higher bottom as compared to previous bottom of 4379. Thus, the formation of higher bottom suggests further bullishness to continue. Hence, a short to medium term trend reversal will be signaled if the Nifty breaches the support of 4377.

 

The Nifty is yet to give an Inverted Head & Shoulder breakout and for that it needs to close above 4700. The immediate resistance for Nifty will be at 4693-4789 which is the 61.8% retracement level of the entire fall.

 

The indicators are all in Buy mode and continue to suggest further momentum.

 

Nifty O.I.PCR is 1.13. Strong PUT writing is visible at strikes of 4500 and 4400 which will act as support. Nifty strike of 4800 is seeing strong CALL writing and hence in near term that level will act as a barrier.

 

For the week ahead, the Resistance is at 4693-4789-4913. Support is at 4588-4453-4361.

 

INDEX LEVELS:

   
 S3S2S1CLOSER1R2R3
Nifty4361445345884636469347894913
Sensex14786150651549915670157891604516457

   LAST WEEKS RECOMMENDATIONS.  

Once again all the targets were achieved except Guj. Alkali. The star performer of the week was JSW Steel.  

STOCKReco. PriceTgtReachedLot Size Profit
Buy Tulip96110141023500Rs.31,000
Buy ONGC112411581177225Rs.11,925
Buy ABAN99710331050400Rs.21,200
Buy Guj. Alkali1071141103000Rs.9,000
Buy JSW Steel6316957131650Rs.1,35,300
    PROFITRs.2,08,425
   

THIS WEEK’S RECOMMENDATIONS:

   
STOCKCMPSLTgt-1Tgt-2
Buy Mc Dowell101898710601107
Buy OFSS1547148715971650
Buy ABAN1038101110981168
Buy Tata Chem255248263269
Buy BEML1066104411001153

 WATCH OUT FOR:

 

    

 

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.

Copyright © 2000 - 2018 Jatin Sanghavi. All rights reserved.
No part of the material on this website may be reproduced or distributed in any forms or by any means, electronics or mechanical without the written permission of the author.
Sitemap