Technotracks for the week starting April 26th

India Infoline News Service | Mumbai |

Nifty closed over 5290-that too just not on a daily closing basis but also on the weekly close. 10 and 20 DMA levels depending whether one watches SMA or EMAs are 5281/5293 and 5275/5262 in that order.

Nifty View

So we finally closed over 5290-that too just not on a daily closing basis but also on the weekly close. 10 and 20 DMA levels depending whether one watches SMA or EMAs are 5281/5293 and 5275/5262 in that order. Keeping jargon aside these levels will provide supports now. The reason I am talking about supports a day after a breakout is the reliance results which came in post closing on Friday and which have not met expectations. After closing over 5304 despite upsetting fundamental news if we can hold 5270-5280 then it just proves that the undertone continues to be strong-a breakdown from these can lead to a fast track move to test 5170 again. A close over 5325 on the other hand will bring in new highs pretty soon. 70-30 in favour of up since oil and gas and especially Reliance has not been the main contributor to the index moving up.For stocks weekly breakouts in the following stocks- JP Associates ,OBC , Indian Bank, Colgate, Tatachem, Jain Irrigation

Weak counters- All of sugar, metals especially steel, Suzlon, HDIL and ABAN, KFA, ABB - these can be played on the short side for trading  with prudence of course as metals generally  oversold. Sterlite support at 786-plus results on Monday, Tata steel @ 628, JSW 1156. Will keep everyone updated on the intraday chat Strategy would be to buy banks on dips-individual stocks or even the index/bank bees-wish we could buy infra bees-none available right now-hope that idea is picked up.


Banking & Financials

From SBI to the latest listing United Bank have performed and how. For the this week too its banking which is giving a 90 percent up move signal. There are buy signals in BOB, ICICI, South Indian, Federal, United and Canara for Monday. Any dips in Allahabad, Andhra, Axis, Dhanlaxmi, IDBI, Indusind, IOB, SBI and Vijaya should be bought into. Broking stocks like Motilal and Religare showing promise for a 5% move.

Capital Goods & Infra

The other sector which is getting stronger is infra /industrial and construction space. Lanco if can hold any onslaught and stays over 57.4 can now make strong upmoves. Larsen has moved above 1600-longer positional signals giving levels of 1850. We have seen a good move in Jaiprakash on Friday- if 155 is held on to another sharp move to 164 can be achieved. HCC, Jyoti structure and IRB all indicating strength.

Auto & Auto Ancillary

M&M bounced off supports of 500-505 but faces resistance at 530 now. Maruti also bounced off supports but failed to garner the momentum it needs. The stronger two are Tata motors and Bajaj Auto. Bajaj has not made any big move of late (2% last week) and has been consolidating but a move above 2125 can bring in fresh momentum to cross previous highs and attempt 2275- any weakness where the stock is available around 2150 should be bought into. Tata Motors in resistance zone at about 845 - it’s a high beta and can react strongly either way but a positional target of 912 is visible - a buy on dips strategy will work on this too-support levels are at 797.

FMCG

ITC did not move last week but I still reckon a target of 290.Mcdowell held on to 1220 supports despite results can move to 1300+

Pharmaceuticals

Dr Reddy support at 1182 and can rise to 1300+ soon. Sun Pharma Advance Research made a good move on Friday and looks set for 104.

Consumer Durables

There is some action cooking in Havells and Bajaj electrical-both charts are indicating possible breakout of 20 percent-this is one sector looking very promising-accumulation patterns strongly visible. Action was also heavy on Century textile on Friday-it’s a high beta too but a 2-3% dip should be bought in for a 576 target.

Oil & Gas

Reliance which closed near the 10 and 20 DMA. Given the news  will open down- levels to watch-next  support @1034 resistance @1120. In the oil and gas space ONGC and HPCL showing some bounce possible however crude is inching towards 85+ which is not too great for the markets in general.


 

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