DSIJ Mindshare

Nifty Remains Woozy

NSE Nifty

The NSE Nifty has moved exactly along the expected lines. The 6100 level has remained unscathed, while a near-term downside has unfolded, but the damage has been rather limited when compared to the rest of the market. Needless to say, the 6100 level still remains rather far away as far as attainability is concerned. The near-term outlook, which had turned negative, still remains so but an oversold situation in a plethora of stocks could go a long away in insulating the Nifty from a bigger decline.

The Mid-Caps and Small-Caps have taken a heavy battering, but now seem set to stage a bounceback of sorts, the sustainability of which is still suspect. Banks have been rather resilient despite the obvious pressure. Capital Goods has been one of the weaker sectors around, and Consumer Durables also continue to post lower tops and bottoms. FMCG has remained rather stable, holding on but not gaining too much. Healthcare has been moving sideways despite the mild negative bias, and IT has remained rather solid but still range-bound. Metals have been one of the weakest sectors but deeply oversold. Realty too has been under near-term pressure, but the decline has been rather tame.

The Nifty has been under obvious pressure, and despite some near-term respite, a reversal isn’t visible yet. While only a close below the 5829 level could exacerbate the decline, a delayed recovery cannot be ruled out.NSE Nifty:

The NSE Nifty has moved exactly along the expected lines. The 6100 level has remained unscathed, while a near-term downside has unfolded, but the damage has been rather limited when compared to the rest of the market. Needless to say, the 6100 level still remains rather far away as far as attainability is concerned. The near-term outlook, which had turned negative, still remains so but an oversold situation in a plethora of stocks could go a long away in insulating the Nifty from a bigger decline.

The Mid-Caps and Small-Caps have taken a heavy battering, but now seem set to stage a bounceback of sorts, the sustainability of which is still suspect. Banks have been rather resilient despite the obvious pressure. Capital Goods has been one of the weaker sectors around, and Consumer Durables also continue to post lower tops and bottoms. FMCG has remained rather stable, holding on but not gaining too much. Healthcare has been moving sideways despite the mild negative bias, and IT has remained rather solid but still range-bound. Metals have been one of the weakest sectors but deeply oversold. Realty too has been under near-term pressure, but the decline has been rather tame.

The Nifty has been under obvious pressure, and despite some near-term respite, a reversal isn’t visible yet. While only a close below the 5829 level could exacerbate the decline, a delayed recovery cannot be ruled out.
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Colgate-Palm. | CMP - Rs 1331.75 | Buy

Colgate Palmolive bottomed out by posting an intra-week low of Rs 691.15 during the week ended May 28, 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 996 during the week ended November 12, 2010. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 783.20 during the week ended February 4, 2011. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 1580.40 during the week ended January 4, 2013.

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

Trading Pointers

Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 1312, 1253 | Resistance: 1356, 1389
Targets: 1st Target: 1381 (4-6 weeks) | 2nd Target: 1405 (12-14 weeks)
BSE Code – 500830 | Stoploss: 1306 (cls)
55 Week EMA: 1247.32
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Hexaware | CMP - Rs 85.35 | Buy

Hexaware peaked at an intra-week high of Rs 47.50 during the week ended November 12, 2010, and declined to post an intra-week low of Rs 37.78 during the week ended November 26, 2010. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 94.30 during the week ended August 12, 2011, only to enter a corrective phase, and declined to post an intra-week low of Rs 067.85 during the week ended August 26, 2011. It staged a rally to peak at an intra-week high of Rs 142 during the week ended September 14, 2012, and entered a corrective phase.

Currently, Hexaware has reversed direction after receiving significant support from the Rs 75 level. A weekly close above the Rs 90 level would mean a possibility of a further upside from here.

Trading Pointers

Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 79, 72 | Resistance: 89, 101 
Targets: 1st Target: 97 (4-6 weeks) | 2nd Target: 101 (12-14 weeks)
BSE Code – 532129 | Stoploss: 79 (cls)
55 Week EMA: 1247.32
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Indian Overseas Bank | CMP - Rs 75.95 | Buy

Indian Overseas Bank bottomed out by posting an intra-week low of Rs 87.35 during the week ended May 28, 2010, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 137 during the week ended August 20, 2010. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 123.05 during the week ended September 3, 2010. It moved sideways before recovering to peak at an intra-week high of Rs 176.35 during the week ended November 5, 2010, only to decline from here.

Currently, Indian Overseas Bank seems to be on the verge of commencing a higher top, higher bottom formation on the intra-day charts, indicating a possibility of a further upside from these levels.

Trading Pointers

Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 73, 68 | Resistance: 79, 86 
Targets: 1st Target: 84 (4-6 weeks) | 2nd Target: 89 (12-14 weeks)
BSE Code – 532388 | Stoploss: 72 (cls)
55 Week EMA: 85
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Tata Global Beverages| CMP - Rs 142.10 | Buy

Tata Global Beverages bottomed out by posting an intra-week low of Rs 80 during the week ended November 25, 2011, took support at the Rs 80 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 126.40 during the week ended February 10, 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 181.70 during the week ended November 17, 2012, and entered a corrective phase.

Tata Global Beverages 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-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 135, 127 | Resistance: 147, 159 
Targets: 1st Target: 156 (4-6 weeks) | 2nd Target: 164 (12-14 weeks)
BSE Code – 500800 | Stoploss: 135 (cls)
55 Week EMA: 136.69

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