DSIJ Mindshare

Nifty Still Inconclusively Range-Bound

The NSE Nifty has expanded its range a bit more (as compared to the last fortnight). The mild negative tinge that it acquired hasn’t exactly gone away and continues to manifest itself somewhat, while the decisive breakout remains as elusive as ever. The market continues to drift due to the lack of a clear directional bias. While at this point in time it is too early to debate on the direction of this anticipated move, resilience has been a trademark of the Nifty so far. The new slightly bigger range has 5548 on the downside and 5820 on the upside. Needless to say, a clear and decisive close is needed above or below this aforesaid trading range for a directional move to unfold.

The Mid-Caps and Small-Caps too have remained corrective (read as range-bound), but both have clearly reflected relative strength to hold. Banks been lackadaisical but strong and Capital Goods have been a weak spot to wilt under pressure. Consumer Durables has posted a fresh all-time high and FMCG has been rather solid. Healthcare too has been one of the better sectors and IT is showing short-term strength. Metals have been distinctly weak but Realty has maintained its solidity.

The Nifty has continued its inconclusive movement and has not yet shown any signs of giving a decisive move. It would be better to wait on the sidelines for a clearer picture to emerge.
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Infoys | CMP - Rs 2416.60 | Buy

Infosys bottomed out by posting an intra-week low of Rs 1635 during the week ended 10th July, 2009, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 2710 during the week ended 15th January, 2010. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 2333 during the week ended 6th February, 2010. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 3493.95 during the week ended 7th January, 2011.

Currently, Infosys seems set to stage an up-move after a decent weekly consolidation. With even the daily picture looking better, a further upside from these levels cannot be ruled out.

Trading Pointers:

Indicators: MACD-Buy | RMI-Sell | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 2414, 2311 | Resistance: 2571, 2633
Targets: 1st Target: 2545 (4-6 weeks) | 2nd Target: 2610 (12-14 weeks)
BSE Code – 500209 | Stoploss: 2350 (cls)
55 Week EMA: 2507.35
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JSW Energy | CMP - Rs 62.75 | Buy

JSW Energy peaked at an intra-week high of Rs 123.90 during the week ended 15th January, 2010, and declined to post an intra-week low of Rs 102 during the week ended 29th January, 2010. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 131.50 during the week ended 7th May, 2010, only to enter a corrective phase, and declined to post an intra-week low of Rs 112.05 during the week ended 28th May, 2010. It staged a rally to peak at an intra-week high of Rs 136.30 during the week ended 9th September, 2010, and entered a corrective phase.

Currently, JSW Energy has reversed direction after receiving significant support from the Rs 58 level. A weekly close above the Rs 66 level would mean the possibility of a further upside from here.

Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Buy
Support: 58, 53 | Resistance: 66, 74
Targets: 1st Target: 72 (4-6 weeks) | 2nd Target: 77 (12-14 weeks)
BSE Code – 533148 | Stoploss: 58 (cls)
55 Week EMA: 57.31
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Pantaloon Retail (India) | CMP - Rs 194.75 | Buy

Pantaloon Retail bottomed out by posting an intra-week low of Rs 105.30 during the week ended 13th March, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 360 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 252.05 during the week ended 17th July, 2009. It moved sideways before recovering to peak at an intra-week high of Rs 531.25 during the week ended 16th July, 2010, only to decline from here.

Currently, Pantaloon Retail seems to be on the verge of continuing its higher top, higher bottom formation on the intra-day charts, indicating the possibility of a further upside from these levels.

Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Buy
Support: 194, 172 | Resistance: 210, 229
Targets: 1st Target: 225 (4-6 weeks) | 2nd Target: 241 (12-14 weeks)
BSE Code – 523574 | Stoploss: 180 (cls)
55 Week EMA: 190.73
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Vijaya Bank | CMP - Rs 55.25 | Buy

Vijaya Bank bottomed out by posting an intra-week low of Rs 46.20 during the week ended 19th March 2010, took support at the Rs 46 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 87.95 during the week ended 20th August, 2010. The scrip declined from here, struggled a bit, finally overcame its recently-posted high, and entered a medium-term uptrend. It appreciated to peak at an intra-week high of Rs 115.35 during the week ended 12th November, 2010, and entered a corrective phase.

Currently, Vijaya Bank could be commencing a short-term uptrend. With the oscillators looking positive, a further upside from these levels cannot be ruled out.


Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 53, 48 | Resistance: 59, 65
Targets: 1st Target: 63 (4-6 weeks) | 2nd Target: 68 (12-14 weeks)
BSE Code – 532401 | Stoploss: 51 (cls)
55 Week EMA: 56.89


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