DSIJ Mindshare

Nifty In An Intermediate Downtrend

NSE Nifty

The NSE Nifty has more or less moved along the expected lines. The 6100 level seems aeons away, while a close below the 5829 level has seen a deeper decline setting in. Despite an oversold situation in certain areas of the market, the recoveries have been sparse and totally unsustainable. Needless to say, the outlook still remains negative as the relentless selling pressure has finally taken a toll on the market, and a sharply negative advance-decline line is a mute witness to the current ongoing implosion.

The Mid-Caps and Small-Caps have flattered to deceive. The pullbacks have been rather insipid and fresh new lows are a regular feature. Banks have finally fallen in line to collapse with the rest of the market. Capital Goods has maintained its position as one of the weaker sectors around. Consumer Durables has finally staged what currently looks like an unsustainable recovery. FMCG has defied all odds to hold on, while Healthcare has also reflected relative strength. IT has posted a fresh two-year high. Metals continues to remain the weakest sector and has just about posted a fresh four-year low. Realty too has been under a significant amount of pressure to collapse.

The Nifty has been reeling under sharp selling, and even now refuses to show any signs of a reversal. While a further downside seems like a distinct possibility, support from retracement levels like the 5608 or 5452 level could see stability and the probable onset of a delayed but sublime rebound.
[PAGE BREAK]

Apollo Hospitals | CMP - Rs 821.95 | Buy

Apollo Hospitals bottomed out by posting an intra-week low of Rs 432.30 during the week ended June 24, 2011, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 716.90 during the week ended December 9, 2011. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 553 during the week ended March 3, 2012. The scrip commenced its uptrend from here and rallied to peak at an intra-week high of Rs 902.85 during the week ended November 30, 2012.

Currently, Apollo Hospitals 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-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 783, 731 | Resistance: 832, 880
Targets: 1st Target: 900 (4-6 weeks) | 2nd Target: 940 (12-14 weeks)
BSE Code – 508869 | Stoploss: 780 (cls)
55 Week EMA: 717.09
[PAGE BREAK]

Asian Paints | CMP - Rs 4320.45 | Sell

Asian Paints peaked at an intra-week high of Rs 3027 during the week ended December 24, 2010, and declined to post an intra-week low of Rs 2395.05 during the week ended February 25, 2011. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 3365.95 during the week ended July 8, 2011, only to enter a corrective phase, and declined to post an intra-week low of Rs 2551.05 during the week ended December 30, 2011. It staged a rally to peak at an intra-week high of Rs 4670 during the week ended February 8, 2013, and entered a corrective phase.

Currently, Asian Paints has reversed direction after receiving significant resistance from the Rs 4600 level. A weekly close below the Rs 4252 level would mean the possibility of a further downside from here.
[PAGE BREAK]

Trading Pointers

Indicators: MACD-Sell | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 4252, 4001 | Resistance: 4350, 4610
Targets: 1st Target: 4020 (4-6 weeks) | 2nd Target: 3900 (12-14 weeks)
BSE Code – 500820 | Stoploss: 4470 (cls)
55 Week EMA: 3904.97
[PAGE BREAK]

MphasiS | CMP - Rs 379.20 | Buy

MphasiS bottomed out by posting an intra-week low of Rs 147 during the week ended February 20, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 416 during the week ended July 30, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 331 during the week ended July 10, 2009. It moved sideways before recovering to peak at an intra-week high of Rs 796 during the week ended November 20, 2009, only to decline from here. Currently, MphasiS seems to be on the verge of commencing a higher top, higher bottom formation on the daily charts, indicating the possibility of a further upside from these levels.

Trading Pointers

Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 369, 351 | Resistance: 387, 403
Targets: 1st Target: 419 (4-6 weeks) | 2nd Target: 435 (12-14 weeks)
BSE Code – 526299 | Stoploss: 359 (cls)
55 Week EMA: 386.35
[PAGE BREAK]

Shree Cement | CMP - Rs 4168.95 | Sell

Shree Cement bottomed out by posting an intra-week low of Rs 1505 during the week ended February 11, 2011, took support at the Rs 1510 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 2197.70 during the week ended April 1, 2011. 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 4800 during the week ended February 8, 2013, and entered a corrective phase.

Shree Cement could be commencing a short-term downtrend. With the oscillators looking negative, a further downside from these levels cannot be ruled out.

Trading Pointers

Indicators: MACD-Sell | RMI-Sell | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 4105, 3872 | Resistance: 4335, 4510
Targets: 1st Target: 3768 (4-6 weeks) | 2nd Target: 3500 (12-14 weeks)
BSE Code – 500387 | Stoploss: 4368 (cls)
55 Week EMA: 3644.93

DSIJ MINDSHARE

Mkt Commentary28-Mar, 2024

Multibaggers28-Mar, 2024

Interviews28-Mar, 2024

Multibaggers28-Mar, 2024

Multibaggers28-Mar, 2024

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR