DSIJ Mindshare

Nifty Makes Further Headway

The NSE Nifty has made its intentions clear once again by moving out upwards from its four-week trading range and has gone on to almost post a fresh two-year high. The index has struggled at the 6000 level, and despite a two trading session close above this aforesaid level, a lack of follow up buying has seen the market stagnate just a wee bit. A close above the 5950 level should have seen the Nifty test the 6100 level, and the current movement would seem to suggest a small bout of consolidation before it takes out the 6000 level in a more decisive manner.

The Mid-Caps and Small-Caps have done rather well, and the good work over the last fortnight could be carried forward into the forthcoming fortnight. Banks have continued their progress. Capital Goods threatened to given an upward breakout which didn’t fructify and it has again slipped into somnolence. Consumer Durables has been clearly corrective and FMCG has reflected near-term weakness. Healthcare has almost posted a fresh all-time high and IT seems to be stabilising. Metals have delivered on their promise to breakout upwards, and Realty too has made slow and steady progress over the last fortnight.

The Nifty is in an established intermediate uptrend. While a major congestion area around the 6000-6200 level is expected to simmer things down, the outlook remains positive. However, sustainability above the 5829 level is a must for the aforesaid positives to unfold.
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Chambal Fertilisers | CMP - Rs 71.25 | Buy

Chambal Fertilisers bottomed out by posting an intra-week low of Rs 52.95 during the week ended 28th May, 2010, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 77 during the week ended 17th September, 2010. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 65.90 during the week ended 25th February, 2011. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 118.50 during the week ended 9th September, 2011.

Currently, Chambal Fertilisers 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-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 66, 59 | Resistance: 75, 83
Targets: 1st Target: 81 (4-6 weeks) | 2nd Target: 85 (12-14 weeks)
BSE Code – 500085 | Stoploss: 66 (cls)
55 Week EMA: 73.47
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Crompton Greaves | CMP - Rs 122.95 | Buy

Crompton Greaves peaked at an intra-week high of Rs 91.33 during the week ended 19th December, 2008, and declined to post an intra-week low of Rs 56.93 during the week ended 27th March, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 182.72 during the week ended 24th July, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 149.03 during the week ended 14th August, 2009. It staged a rally to peak at an intra-week high of Rs 349 during the week ended 3rd December, 2010, and entered a corrective phase.

Currently, Crompton Greaves has reversed direction after receiving significant support from the Rs 110 level. A weekly close above the Rs 130 level would mean the possibility of a further upside from here.


Trading Pointers

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 118, 102 | Resistance: 135, 152
Targets: 1st Target: 140 (4-6 weeks) | 2nd Target: 152 (12-14 weeks)
BSE Code – 500093 | Stoploss: 114 (cls)
55 Week EMA: 132
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Indian Hotels | CMP - Rs 67.50 | Buy

Indian Hotels bottomed out by posting an intra-week low of Rs 34 during the week ended 13th March, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 82 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 56.10 during the week ended 17th July, 2009. It moved sideways before recovering to peak at an intra-week high of Rs 118.35 during the week ended 14th May, 2010, only to decline from here.

Currently, Indian Hotels 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: 63, 52 | Resistance: 79, 91
Targets: 1st Target: 77 (4-6 weeks) | 2nd Target: 83 (12-14 weeks)
BSE Code – 500850 | Stoploss: 62 (cls)
55 Week EMA: 64.69
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JSW Holdings | CMP - Rs 644 | Buy

JSW Holdings bottomed out by posting an intra-week low of Rs 192.75 during the week ended 13th March, 2009, took support at the Rs 193 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 896.20 during the week ended 5th June, 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 2251.15 during the week ended 8th October, 2010, and entered a corrective phase. 

Currently, JSW Holdings 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: 641, 582 | Resistance: 681, 723
Targets: 1st Target: 744 (4-6 weeks) | 2nd Target: 779 (12-14 weeks)
BSE Code – 532642 | Stoploss: 594 (cls)
55 Week EMA: 637.73



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