10:16 July 13, 2010
The markets have been steady and benign for the last one week. Week-on-week we gained 2.8 percent and month-on-month we gained 6 percent. We closed on Monday at 5383 after attempting 5400 yet again and finding strong resistance there. Nifty futures closed for the first time in a week at a discount indicating a strong resistance at the level. The oscillators are overbought but trend saturation is not visible and some indicators are signaling a bullish trend. World markets have been up for four days on a trot and today being Infy results is all going to play heavily on the markets. The 10DMA for the markets is 5285, 20DMA coincides at the same levels indicating a lot of support there now. No need to get bearish or go short till that level is breached.
Banking & Financials
Sectorally midcap banks looking the best- Allahabad, UCO, Dena, United, IOB looking set to attempt old highs and surpass. Private banks like HDFC, Axis, Yes, Federal looking set for 5% outperformance. Indusind has given a fresh signal of a 10% breakout. Canara Bank too has given a breakout, any dips should be used to buy into the counters. Technically, DCB, Max, IDFC, LIC Housing giving swing buys. PFC looks good to buy on dips until 304-306.
Capital Goods & Infra
Crompton in industrials looking good for a breakout for 280/290 with a SL 254. Cummins on dips for a breakout for 650. JP Associates looking good for 136
Auto & Auto Ancillary
Ashok Leyland consolidating well, fresh move expected soon-dips should be used to buy. Exide giving a breakout for 150 levels.
Dr Reddy reiterate an investment buy-stock has consolidated enough around the 1450-1470 levels is now set to breakout over 1520 for 1680 levels. Aurobindo also signaling a 5-8 percent breakout
IT & IT Services
Polaris has given a stellar performance and targets are close to 220 and 240 levels. Hexaware looking for 93 levels. Dips look good to buy
Domestic consumption stories like Nilkamal, Radico, Videocon, Whirlpool, Godrej look good. Emami giving a fresh breakout for 1024
UTV showing accumulation for 436.would keep a SL of 400.
JSW ,Bhushan, Hindalco close to resistance levels. Fresh buy signals yesterday in SAIL and today in Tata steel .
Bharti facing resistance at 308 – if can overcome that will scale to 320-but there is lot of resistance at these levels and would use upmoves to exit until some news comes in which would justify a further upmove. Expect Idea to face resistance around 70-71. RCOM can give a move to 204. Tata Tele also looking good for 23.45
Oil & Gas
Essar Oil has a positive bias. Cairn looking good with a SL at 304 for a target 349
Stocks with a Strong Trend
Allhabad Bank, BP, Dena, DLF, Essar Oil, Everonn, Federal Bank, HCC, Hexaware, Indusind, IOB, Jet Airways, Opto Circuits, TVS Motors, Syndicate Bank
Technotracks will now be posted on Tuesday and not Mondays – have a great day