Nifty closed above its 10DMA and 5420 after struggling there for a few sessions. Needless to say the world markets helped. A gap up caused by Asian markets helped the market to surface over the crucial 5400 level where it had dipped on Friday and taken support at the 5365 levels.
Nifty now has support at around 5378 and resistance would be attempting to cross the 5477 level which is the 52 week high. Though the Dow closed up smartly and Asia is up the SGX nifty at 8.20 right now is up only marginally to 5450 level. The moving averages which provide supports are as follows- 10SMA 5411, EMA 5403, 20 SMA 5381, 20 EMA 5375, 50 SMA 5247, 50 EMA 5294, 200 SMA 5120, 200 EMA 5042.
Coming to sectors banking is firing on all guns. Though overbought, fresh buy signals based on increasing momentum are being generated every day- yesterday SBI, PNB, BoB, Vijaya had given fresh triggers to buy – The momentum in the above will continue. Today fresh signals are visible in Dena, HDFC (the big one), IOB, Central, REC (SL: 306 TGT: 356 this can be held for a long time) and Andhra Bank. Dips to buy would continue to be the right strategy for banks.
Infra/ Construction looks like momentum is building up- RIIL, IVRCL(SL:175, TGT: 194), Patel Engineering, Nagarjuna constn, Lanco (SL: 65.75, TGT: 70.5), Voltas (SL: 205, TGT: 230) – they all look good for 5%. Trend will become stronger once Larsen and BHEL start moving.
Real estate showing strength- HDIL, Godrej Property , Omaxe, Purvankara held on weak markets - fresh signal today in IBreal and Purvankaara (SL: 116, TGT: 143) – please note all calls mentioned here are swing calls and not intraday
Metals too shining- Hindalco and Tata Steel being stronger than the others- Hindustan Zinc fresh signal today for TGT: 1130, SL:1020 (breakout level)
Domestic consumption, Gillette breaking out for a TGT: 2100, SL: 1790. United Spirits looking good for 1500+.
Agri- Kaveri Seeds and Bayer both giving good breakouts - buy on dips
Nifty if can sustain 5450 for a couple of sessions will move to 5550 soon