Nifty Slips Again
9/6/2012 9:01 PM Thursday
The NSE Nifty has moved exactly along the expected lines. It has not been able to sustain above the 5410 level (gave a three-trading session close above 5410 - 5421, 5413, 5415), but did not close on the weekly charts and the anticipated correction has manifested itself without breaching the 5224 level. The short-term outlook has obviously come under pressure and transformed into a short-term downtrend, which might translate into a further downside, possibly till the 5182-5224 level. An oversold situation seems to be developing, indicating the possibility of a recovery from the aforesaid levels. A weekly close above the 5410 level is an absolute must if any significant appreciation has to unfold.
The Mid-Caps and Small-Caps have remained distinct weak spots and seem to be in a mood to depreciate further, albeit with a small pause. Banks have been at the forefront of the decline, Capital Goods have back-pedalled furiously and Consumer Durables have remained relatively range-bound. FMCG and Healthcare have posted fresh all-time highs, while IT has shown a lot of resilience in a skewed market. Metals have continued their obvious weakness, and Realty too has been one of the weakest sectors.
The Nifty has walked into an expected correction which hasn’t yet run its course. While a late recovery seems to be on the cards, it seems more like a trading market than an investing market. A scrip-specific approach is advocated.
CMP - Rs 118.20 | Buy
Aurobindo Pharma bottomed out by posting an intra-week low of Rs 25.30 during the week ended 6th February, 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 198 during the week ended 12th March, 2010. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 157.25 during the week ended 14th May, 2010. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 275 during the week ended 7th January, 2011.
Currently, Aurobindo Pharma 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.
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 114, 101 | Resistance: 126, 141
Targets: 1st Target: 134 (4-6 weeks) | 2nd Target: 141 (12-14 weeks)
BSE Code – 524804 | Stoploss: 110 (cls)
55 Week EMA: 122.10
Find More Articles on: Stock Recommendations, Technical Tips, DSIJ Magazine, Technicals, Product, Mid Cap