Nifty Slips Again

NSE Nifty 

The NSE Nifty hasn’t moved along the expected lines, and the mild overbought situation has actually resulted in a reversal of sorts, though currently for the short term. While the near-term outlook has turned negative, the 6100 level has remained impregnable so far and looks to remain that way till the end of the month. A distribution seems to have happened in the Nifty, thereby limiting the near-term upside at 6100. A six trading session decline could result in an unsustainable bounce.

The Mid-Caps and Small-Caps have been taken to the cleaners, so to speak, with virtually no respite and seem set to sink lower even now. Banks have finally slipped into a decline. Capital Goods have belied hopes of a sustained recovery and continue their down-move. Consumer Durables have staged a decent bounceback, and FMCG has extended its recovery after a protracted decline. However, Healthcare has been under pressure and is likely to remain so. IT has remained relatively strong and range-bound. Metals have been one of the weaker sectors and look set to maintain and sustain this weakness. Realty too is on the verge of falling in line with the market, and a decline seems almost inevitable.

The Nifty has suffered a distinct short-term reversal. A further downside seems like a distinct possibility, while the 5926 level followed by the 5829 level could play a major part in limiting this anticipated downside.
[PAGE BREAK]

AB Nuvo | CMP - Rs 1112.40 | Sell

AB Nuvo bottomed out by posting an intra-week low of Rs 726 during the week ended 8th June, 2012, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 983.95 during the week ended 5th October, 2012. However, it couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 886.10 during the week ended 2nd November, 2012. It commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 1190.95 during the week ended 25th January, 2013.

Currently, AB Nuvo seems set to stage a down-move after a decent weekly distribution. With even the daily picture looking weaker, a further downside from these levels cannot be ruled out.

Trading Pointers

Indicators: MACD-Buy | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 1105, 1044 | Resistance: 1159, 1191
Targets: 1st Target: 1012 (4-6 weeks) | 2nd Target: 970 (12-14 weeks)
BSE Code – 500303 | Stoploss: 1162 (cls)
55 Week EMA: 943.01
[PAGE BREAK]

Dabur India | CMP - Rs 133.45 | Buy

Dabur India peaked at an intra-week high of Rs 105 during the week ended 7th January, 2011, and declined to post an intra-week low of Rs 86.70 during the week ended 28th January, 2011. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 122 during the week ended 17th June, 2011, only to enter a corrective phase, and declined to post an intra-week low of Rs 92.05 during the week ended 3rd February, 2012. It staged a rally to peak at an intra-week high of Rs 140 during the week ended 2nd November, 2012, and entered a corrective phase.

Currently, Dabur India has reversed direction after receiving significant support from the Rs 125 level. A weekly close above the Rs 135 level would mean the possibility of a further upside from here.

Trading Pointers

Indicators: MACD-Sell | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 125, 113 | Resistance: 135, 147
Targets: 1st Target: 143 (4-6 weeks) | 2nd Target: 148 (12-14 weeks)
BSE Code – 500096 | Stoploss: 128 (cls)
55 Week EMA: 119.89
[PAGE BREAK]

Financial Technologies | CMP - Rs 1077.10 | Sell

Financial Technologies bottomed out by posting an intra-week low of Rs 518.10 during the week ended 30th December, 2011, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 958.80 during the week ended 17th February, 2012. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 552.05 during the week ended 18th May, 2012. It moved sideways before recovering to peak at an intra-week high of Rs 1223.80 during the week ended 16th November, 2012, only to decline from here.

Currently, Financial Technologies seems to be on the verge of commencing a lower top, lower bottom formation on the daily charts, indicating the possibility of a further downside from these levels.

Trading Pointers

Indicators: MACD-Sell | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 125, 113 | Resistance: 135, 147
Targets: 1st Target: 143 (4-6 weeks) | 2nd Target: 148 (12-14 weeks)
BSE Code – 500096 | Stoploss: 128 (cls)
55 Week EMA: 119.89
[PAGE BREAK]

Indian Oil Corp. | CMP - Rs 328.65 | Buy

Indian Oil Corporation bottomed out by posting an intra-week low of Rs 240 during the week ended 31st August, 2012, took support at the Rs 240 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 269.90 during the week ended 14th September, 2012. 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 375 during the week ended 18th January, 2013, and entered a corrective phase.

Currently, Indian Oil Corporation could be continuing its medium-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-Sell | ROC-Buy | RSI-Buy
Support: 325, 309 | Resistance: 342, 365
Targets: 1st Target: 364 (4-6 weeks) | 2nd Target: 381 (12-14 weeks)
BSE Code – 530965 | Stoploss: 310 (cls)
55 Week EMA: 277.76