Nifty Finally Gives An Upward Breakout

The NSE Nifty has staged a delayed move (the elusive breakout has finally materialised on the upside), and the speed and quantum would seem to suggest that it has made up on lost time to post a fresh 84-week high. However, the index has flattered to deceive, as though it has come close, it hasn’t yet conquered the 6000 level. A close above the 5950 level could mean fresh legs to the current ongoing up-move. Needless to say, the outlook continues to remain positive as long as the Nifty sustains above the 5838 level, and a higher top, higher bottom scenario on the market continues unabated.

The Mid-Caps and Small-Caps have moved from strength to strength, while there has been an almost perpendicular rise with virtually no correction coming in. Banks have been the bulwark of the current move. Capital Goods have staged a rather feeble move as compared to the rest of the market. Consumer Durables, FMCG and Healthcare have all posted fresh all-time highs, while IT is showing short-term weakness. Metals have been underperformers but seem to be on the verge of an upward breakout. Realty has made good progress over the last fortnight.

The Nifty has given an upward breakout after a prolonged consolidation. While a further upside cannot be ruled out, caution is advised around the 6060 level.
[PAGE BREAK]

BHEL | CMP - Rs 243.35 | Buy

BHEL bottomed out by posting an intra-week low of Rs 250.20 during the week ended 6th March, 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 466.80 during the week ended 22nd May, 2009. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 388 during the week ended 17th July, 2009. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 539 during the week ended 8th October, 2010.

Currently, BHEL 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.

Trading Pointers

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 237, 219 | Resistance: 253, 272
Targets: 1st Target: 269 (4-6 weeks) | 2nd Target: 285 (12-14 weeks)
BSE Code – 500103 | Stoploss: 230 (cls)
55 Week EMA: 255.84
[PAGE BREAK]

DLF | CMP - Rs 221.95 | Buy

DLF peaked at an intra-week high of Rs 167.70 during the week ended 20th February, 2009, and declined to post an intra-week low of Rs 136 during the week ended 13th March, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 426.80 during the week ended 5th June, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 259.20 during the week ended 17th July, 2009. It staged a rally to peak at an intra-week high of Rs 490.80 during the week ended 23rd October, 2009, and entered a corrective phase.

Currently, DLF has reversed direction after receiving significant support from the Rs 200 level. A weekly close above the Rs 230 level would mean the possibility of a further upside from here.

Trading Pointers

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 220, 200 | Resistance: 230, 245
Targets: 1st Target: 246 (4-6 weeks) | 2nd Target: 260 (12-14 weeks)
BSE Code – 532868 | Stoploss: 210 (cls)
55 Week EMA: 212.57
[PAGE BREAK]

IVRCL | CMP - Rs 45.90 | Buy

IVRCL bottomed out by posting an intra-week low of Rs 41.12 during the week ended 23rd January, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 93.60 during the week ended 29th April, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 72.50 during the week ended 15th May, 2009. It moved sideways before recovering to peak at an intra-week high of Rs 212.40 during the week ended 17th October, 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 charts, indicating the possibility of a further upside from these levels.

Trading Pointers

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 44, 41 | Resistance: 48, 52
Targets: 1st Target: 52 (4-6 weeks) | 2nd Target: 55 (12-14 weeks)
BSE Code – 530773 | Stoploss: 43 (cls)
55 Week EMA: 49.63
[PAGE BREAK]

Jain Irrigation | CMP - Rs 72.20 | Buy

Jain Irrigation bottomed out by posting an intra-week low of Rs 64.21 during the week ended 27th March, 2009, took support at the Rs 64 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 186 during the week ended 4th December, 2009. The scrip declined from here, struggled a bit, and finally overcame its recently-posted high. It entered a medium-term uptrend, appreciated to peak at an intra-week high of Rs 264.57 during the week ended 13th August, 2010, and entered a corrective phase.

Currently, Jain Irrigation could be continuing its 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-Buy | RSI-Buy
Support: 69, 63 | Resistance: 75, 84
Targets: 1st Target: 80 (4-6 weeks) | 2nd Target: 90 (12-14 weeks)
BSE Code – 500219 | Stoploss: 68 (cls)
55 Week EMA: 89.13