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DSIJ's technical picks

| 1/13/2012 1:30 PM Friday

Nifty Trying To Stabilise

The NSE Nifty hasn’t done much, and has been tightly range-bound for the fourth week running due to the lack of liquidity. However, it has managed to show a surprising amount of resilience by holding its ground, despite being in an obvious and apparent intermediate downtrend. The rather broad range for the Nifty comes between 4671 on the downside and 4835 on the upside. Needless to say, any tradeable action could come only above or below this aforesaid trading range. There is a mild positive bias in the near term, pointing towards a possible move to the 4835 levels, while sustainability above this level would be crucial for the markets to make further headway, at least for the time being.

The Mid- and Small-Caps (seem a smidge better) have staged a (decent) recovery in line with the markets. Banks have been market performers, while Capital Goods have struggled but managed to stage a semblance of a recovery. Consumer Durables haven’t made much  headway. FMCG has held on despite looking tired, while Pharma has been on the rebound. IT has been quite solid and Metals too, despite a stuttering recovery, has held on. Realty has been rather stagnant. The Nifty hasn’t done much, but has managed to hold on.  Positive divergence on the weekly charts would suggest the possibility of a mild recovery, and while it is not convincing enough yet, the
bias has definitely shifted mildly towards the positive.

ABAN OFFSHORE | Buy CMP - Rs360.60
1st Target: 400 (4-6 weeks) 2nd Target: 420 (12-14 weeks) Stoploss: 340 (cls)

Trading Pointers:
Indicators: MACD-Buy | RMI-Sell | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 346, 324 | Resistance: 378, 401
BSE Code - 523204 | 55-Week EMA: 509.91

Aban Offshore bottomed out by posting an intra-week low of Rs224.10 during the week ended 13th March, 2009, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intraweek high of Rs531 during the week ended 17th April, 2009. The stock couldn’t sustain these levels for long, and declined to post an intra-week low of Rs391.10 during the week ended 29th April, 2009. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs1679.50 during the week ended 9th October, 2009.

Currently, the stock 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.

EDUCOMP SOLUTIONS Buy CMP - Rs209.15
1st Target: 239 (4-6 weeks) 2nd Target: 258 (12-14 weeks) Stoploss: 194 (cls)

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 191, 168 | Resistance: 213, 239
BSE Code -532696 | 55-Week EMA: 333.65

Educomp Solutions peaked at an intra-week high of Rs365 during the week ended 30th January, 2009, and declined to post an  intra-week low of Rs266.30 during the week ended 6th February, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs538.44 during the week ended 24th April, 2009, only to enter a corrective phase, and declined to post an intra-week
low of Rs447.60 during the week ended 8th May, 2009. It staged a rally to peak at an intra-week high of Rs1017 during the week ended 9th October, 2009, and entered a corrective phase. Currently, the stock has reversed its direction after receiving significant support at the Rs170 level. A weekly close above the Rs213 level would mean the possibility of a further upside from here.

JINDAL SOUTH WEST | Buy CMP - Rs431.00
1st Target: 491 (4-6 weeks) 2nd Target: 515 (12-14 weeks) Stoploss: 401 (cls)

Trading Pointers:
Indicators: MACD-Buy | RMI-Sell | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 421, 393 | Resistance: 448, 481
BSE Code - 532642 | 55-Week EMA: 813.25

Jindal South West bottomed out by posting an intraweek low of Rs192.75 during the week ended 13th March, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs896.20 during the week ended 5th June, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs561.10 during the week ended 17th July, 2009. The stock moved sideways before recovering to peak at an intra-week high of Rs2251.15 during the week ended 8th October, 2009, only to decline from here.

Currently, the scrip seems to be on the verge of forming a higher top, higher bottom formation on the daily chart, indicating the possibility of a further upside from these levels.

TATA GLOBAL BEVERAGES Buy CMP - Rs93.10
1 st Target: 103 (4-6 weeks) 2nd Target: 109 (12-14 weeks) Stoploss: 88 (cls)

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 91, 83 | Resistance: 99, 110
BSE Code - 500800 | 55-Week EMA: 94.86

Tata Global Beverages bottomed out by posting an intra-week low of Rs51.41 during the week ended 20th March, 2009, took support at the Rs52 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs84.60 during the week ended 12th June, 2009.
The stock declined from here, struggled a bit, finally overcame its recently-posted high, entered a medium-term uptrend, appreciated to peak at an intra-week high of Rs138.65 during the week ended 8th October, 2010, and entered a corrective phase.

Currently, it could be commencing a medium-term uptrend. With the oscillators looking positive, a further upside from these levels cannot be ruled out.

 

Find More Articles on: Stock Recommendations, Technical Tips, DSIJ Magazine, Technicals, Product, Large Cap

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