Nifty In An Uptrend
The NSE Nifty has broken out above the 4835 level. It has been in the midst of a rollicking uptrend, has managed to stage one of its
trademark 10 per cent rallies (we have had a few during the last calendar year) and seems to be in a mood to sustain it this time around. The outlook has turned positive, and while the Nifty is close to its traditional resistance level of 5182, there has been a surprising amount of technical resilience, which would seem to point towards some distinct sustainability (with due corrections of course) as long as the 4810 level remains unscathed (in terms of closing).
The Mid-Caps and Small-Caps (seem a lot better) have both staged a (smart) recovery in line with the market after a rather long time. Banks have been clear market outperformers, while Capital Goods have redeemed themselves with consummate ease in the last fortnight. Consumer Durables have also participated in the up-move. FMCG has held on despite some stagnation, while Pharma has been on the rebound. IT has finally declined, and Metals too have been one of the brighter spots in the market. Realty has been a revelation, with smart market performance.
The Nifty has woken up from its somnolence to stage a brilliant upmove. While the 5182 level could play spoilsport for the time being, the time has once again come to buy first and sell later.
GRASIM INDUSTRIES | Buy CMP - Rs 2522.90
1st Target: 2723 (4-6 weeks) 2nd Target: 2810 (12-14 weeks) Stoploss: 2423 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 2468, 2381 | Resistance: 2536, 2608
BSE Code - 500300 | 55-Week EMA: 2316.05
Grasim bottomed out by posting an intra-week low of Rs 688.88 during the week ended 5th December, 2008, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 2321.02 during the week ended 31st July, 2009. The stock couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 1740 during the week ended 2nd July, 2010. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 2625 during the week ended 8th April, 2011.
Currently, Grasim seems set to stage an upmove after a decent weekly consolidation. With even the daily picture looking better, a further upside from these levels cannot be ruled out.
HDFC | Buy CMP - Rs 695.85
1st Target: 765 (4-6 weeks) 2nd Target: 790 (12-14 weeks) Stoploss: 660 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 652, 614 | Resistance: 705, 765
BSE Code - 500010 | 55-Week EMA: 656.74
HDFC peaked at an intra-week high of Rs 568.90 during the week ended 27th November, 2009, and declined to post an intra-week low of Rs 460 during the week ended 29th January, 2010. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 627.80 during the week ended 16th July, 2010, only to enter a corrective phase, and declined to post an intra-week low of Rs 576 during the week ended 30th July, 2010. It staged a rally to peak at an intra-week high of Rs 780.05 during the week ended 17th September, 2010, and entered a corrective phase.
Currently, HDFC has reversed direction after receiving significant support from the Rs 650 level. A weekly close above the Rs 705 level would mean the possibility of a further upside from here.
TATA STEEL | Buy CMP - Rs 426.70
1st Target: 461 (4-6 weeks) 2nd Target: 485 (12-14 weeks) Stoploss: 410 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 425, 396 | Resistance: 452, 480
BSE Code - 500470 | 55-Week EMA: 426.70
Tata Steel bottomed out by posting an intra-week low of Rs 148.65 during the week ended 6th March, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 496.40 during the week ended 5th June, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 330.60 during the week ended 17th July, 2009. The scrip moved sideways before recovering to peak at an intra-week high of Rs 737 during the week ended 26th March, 2009, only to decline from here.
Currently, the scrip seems to be on the verge of continuing its higher top, higher bottom formation on the daily chart, indicating the possibility of a further upside from these levels.
THERMAX | Buy CMP - Rs 477.35
1st Target: 509 (4-6 weeks) 2nd Target: 525 (12-14 weeks) Stoploss: 461 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 446, 425 | Resistance: 488, 513
BSE Code - 500411 | 55-Week EMA: 535.69
Thermax bottomed out by posting an intra-week low of Rs 162.60 during the week ended 27th March, 2009, took support on the Rs 163 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 475.20 during the week ended 24th July, 2009. The stock declined from here, struggled a bit, finally overcame its recently-posted high, entered a medium-term uptrend, and appreciated to peak at an intra-week high of Rs 926.90 during the week ended 5th November, 2010, entering a corrective phase.
Currently, Thermax could be commencing a medium-term uptrend. With the oscillators looking positive, a further upside from these levels cannot be ruled out.