DSIJ's technical picks

Nifty Rolls On

The NSE Nifty has seen an amazing run and is rolling on like a juggernaut. While the wheels have been in motion for eight weeks and counting now, and while rather important and formidable resistance levels have been ignored for the time being, the 5410 level seems to be the next level followed by the 5562 level. The quantum and speed of the rise has been slightly disconcerting, but as expected, the sustainability is anticipated to remain this time around. Though there is no technical evidence to suggest a major reversal yet, a correction would go a long way in improving the health of the market. The Mid- and Small-Caps changed gears to go into an overdrive, and a significant amount of action has been witnessed in this segment after aeons, which is a technically reassuring sign as far the breadth of the market is concerned.

Banks continue to remain market outperformers, while Capital Goods have also made a reasonable amount of progress. Consumer Durables have been a lazy participant in the upmove, FMCG has been docile but has held on, while Pharma has been a solid sector. IT has staged a smart comeback, and Metals too have been one of the better performing spots in the market. Realty has gained further ground.

The Nifty has been on a roll, with an amazing amount of alacrity as far as levels are concerned. While a further upside cannot be ruled out, it would be prudent to observe caution at higher levels, making it a buy on declines market.

ADANI ENTERPRISES | Buy CMP - Rs 435.15
1st Target: 485 (4-6 weeks) 2nd Target: 501 (12-14 weeks) Stoploss: 410 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 405, 378 | Resistance: 438, 472
BSE Code - 512599 | 55-Week EMA: 491.83

Adani Enterprises bottomed out by posting an intra-week low of Rs 121 during the week ended 27th March, 2009, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 432.65 during the week ended 3rd July, 2009. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 311 during the week ended 18th September, 2009. It commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 785.25 during the week ended 5th November, 2010. 

Currently, Adani Enterprises seems set to stage an upmove after a decent weekly correction. With even the daily picture looking better, a further upside from these levels cannot be ruled out.

DABUR INDIA | Buy CMP - Rs 99.10
1st Target: 109 (4-6 weeks) 2nd Target: 114 (12-14 weeks) Stoploss: 94 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 93, 85 | Resistance: 100, 112
BSE Code - 500096 | 55-Week EMA: 99.96

Dabur India peaked at an intra-week high of Rs 45.95 during the week ended 26th September, 2008, and declined to post an intra-week low of Rs 30 during the week ended 31st October, 2008. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 85.95 during the week ended 11th December, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 73.03 during the week ended 29th January, 2010. It staged a rally to peak at an intra-week high of Rs 122 during the week ended 17th June, 2011, and entered a corrective phase.

Currently, the scrip has reversed its direction after receiving significant support from the Rs 93 level. A weekly close above the Rs 100 level would mean the possibility of a further upside from here.

GAIL | Buy CMP - Rs 389.30
1st Target: 419 (4-6 weeks) 2nd Target: 435 (12-14 weeks) Stoploss: 374 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 387, 357 | Resistance: 410, 449
BSE Code - 532155 | 55-Week EMA: 418.57

GAIL bottomed out by posting an intra-week low of Rs 241 during the week ended 24th April, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 449.40 during the week ended 22nd January, 2010. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 385.15 during the week ended 5th March, 2010. It moved sideways before recovering to peak at an intra-week high of Rs 535.85 during the week ended 7th January, 2011, only to decline from here.

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

PNB | Buy CMP - Rs 973.25
1st Target: 1033 (4-6 weeks) 2nd Target: 1060 (12-14 weeks) Stoploss: 943 (cls)
Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 960, 932 | Resistance: 1011, 1049
BSE Code - 532461 | 55-Week EMA: 991.84

PNB bottomed out by posting an intra-week low of Rs 286.20 during the week ended 6th March, 2009, took support at the Rs 286 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 960 during the week ended 15th January, 2010. The stock 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 1395 during the week ended 12th November, 2010, and entered a corrective phase.

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