[T.S.R:10981] market views

Technical Check & Outlook 15/9/09

It was another lackluster day on the first trading day of the week where Spot Nifty moved within a narrow band of 45 points through out the day. Market opened in the negative territory taking weak global cues and took support near its minor trend line support and bounced back to close at 4808.60 losing 20.95 points or 0.43%. BSE Sensex closed at 16214.19 losing 50.11 points or 0.31%. BSE Midcap closed at 5930.38 up by 8.77 points or 0.15% whereas BSE Small Cap Indices closed at 7133.66 gaining 32.39 points or 0.46%. The volume was bit lower than the previous trading session and the breadth was flat.

Technically speaking in the Spot Nifty daily candle stick chart a small day bearish candlestick has appeared which depicts bit indecision at this juncture. Presently the minor trend is up and the trend line support exists at 4780. Also Spot Nifty is moving above its extreme short, medium and long term moving averages. If we look to the momentum indicators MACD is in BUY mode apart from that 14 days RSI and Stochastic Oscillator has entered in the overbought zone and both the indicators have started generating some negative divergence but yet they are to confirm the same. Here it is mention that still Positive Directional Indicator (+DI) is hovering over the (-DI) Negative Directional Indicator.

Yesterday's market closing suggests flat opening today. In event of moving down Spot Nifty will find initial support around 4780 which is the minor trend line support also 7 EMA is placed at that area. Breaching 4780 may take Spot Nifty towards 4750 level, there after support will be around 4710-4720 zone. On the upside initial resistance will be felt around 4832 clearing which 4855 will offer strong resistance followed by previous week's high of 4890.

Here it is to mention that in the previous week Spot Nifty has moved up more than 300 points at a stretch (from 4580 to 4889). So in the short term some sort of profit booking cannot be ruled out. Certain technical indicators are also suggesting the fizzling out of the ongoing rally.

In commodities front gold (997$ /oz), silver (16.33$/oz) is looking bit tired after the great recent rally. Crude (68.5$) and base metal complex is asking some correction backed buy strengthening US Dollar pull back against its major currencies. Also Indian Rupee has lost considerable strength against the USD and presently is hovering at 48.74.

 

 

Stock To Watch

Wipro Ltd -

Strategy & Target - Stock is showing good chart formation. Moreover company has won 3 year contract from ANA, Japan. Our target 568. Holding period 1 - 3 days

Sundaram Finance Ltd -

Strategy & Target - Sundaram Finance Ltd after consolidation looks to move up our target 315 - 320

Tech Mahindra Ltd -

Strategy & Target - Tech Mahindra Ltd is trading near its support level of 885. Buying Tech Mahindra Ltd on dips can be done with target of 920 - 940

Larsen & Toubro Ltd -

Strategy & Target - Larsen & Toubro Ltd is trading near good support zone. Buying in Larsen & Toubro Ltd can be done with price target of 1640 for short term and 1670 - 1700 for short to medium term.

 

 

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