BONANZA:: Nifty’s long term trend along with short term trend is up. Nifty’s breakout above crucial resistance at 5450-5480 levels shows bulls are in control at the moment. Due to Nifty August future expiry, Nifty may face some resistance within 5550-5650 range. Global Equity markets and showing profit booking from important levels, Therefore, Traders should be cautious.
For trading during the coming trading sessions, trend deciding level is 5550. If Nifty shows strength above 5550 levels then we may see rally to 5600/5650/5700 levels. If Nifty doesn’t sustain above 5550 levels then decline to 5500/5450/5400 may also be seen.
Recommendation for Monday:- Intra Day Trading
Scrip (LTP) Action At Price For Target of Stop Loss Duration
MLL(54.05) BUY ABOVE 54 57 52 1 day
NTPC (193.25) SELL BELOW 193 189 195 1 day
Technical View: NIFTY FUTURE
Duration Action Entry Zone For Target of Stop Loss
For Monday Buy Around 5480 5525/5545 5450
For the Week Buy 5450-5500 5550/5580 5420
Fundamental Calls
Company Recommendation Buy Range Target
Dena Bank Buy 110 125
PINC MONEY:: "The Nifty closed above 5,500 this week thus indicating firm bullish behavior. The movement is in line with our view."
"The medium term technicals are gaining bullish strength and point to further advances. We see the level of 5,600- 5,650 as crucial resistance for the Nifty. But a break out above this resistance will open the potential for a target of 6,300," it stated while opining outlook for upcoming week.
"The trend in Nifty remains positive in the medium term charts. It has overcome the resistance at 5,475 which was our target level. The next resistance is likely to be in the range of 5,600 - 5,650, while the level of 5,350 - 5,325 can offer good initial support. The measuring implication of the channel indicates a target of 6,300 for the Nifty. We expect the trend to remain positive and rise over the coming weeks," it added further.
SMC:: "Going forward the domestic market is expected to remain firm with the support of foreign investment. However, investors will continuously monitor the global developments after some of the recent disappointing data coming from U.S. markets. Trend of Indian Stock Markets is up though other world markets are coming under pressure especially the European and US markets. Dollar index is showing some strength which is giving jitters to commodities. But till the trend of our stock markets is up, one should be playing on the long side with a cautious approach. Nifty has support between 5400-5350 and Sensex between 18000-17800 levels."
CANMONEY:: "Indian stock market may continue its horizontal move with some positive bias in the coming week too. The progress of South West Monsoons and global market movement will give further guidance to our market either way. All throughout the week nifty maintained the close of above 5400 levels and now this became the immediate support level for our market.
Market may witness high Volatility next week as trader`s may rollover their positions in derivatives segment from the August series to the September series ahead of the expiry of the near month August contracts on Thursday. During the week 5600 call option and 5400 put option have both(August), reported highest open interest which indicating that Nifty may remain in the range of 5400-5600 levels for next week and closing of current month expiry is likely to be at around 5500 levels.
Important supports for SENSEX and NIFTY are at 18245/18105/17985 and 5480/5435/5415 respectively. On the other hand, resistances for Sensex and Nifty are placed at 18460/ 18590/18670 and 5550/5590/5610."
EDELWEISS SECURITIES:: (Weekly Technical Calls)::
GAIL (India) - BUY : Buying is recommended at CMP of Rs 468.5 with target of Rs 495 and stop loss of Rs 452. Stock has broken out its downward sloping trend line on its daily chart. Further, it has generated bullish 7, 21 days moving average crossovers along with volumes indicating positive momentum to continue in the counter. Oscillator on daily and weekly chart depicts bullishness with Stochastic, RSI and MACD generating bullish crossovers.
GAIL (India) - BUY : Buying is recommended at CMP of Rs 468.5 with target of Rs 495 and stop loss of Rs 452. Stock has broken out its downward sloping trend line on its daily chart. Further, it has generated bullish 7, 21 days moving average crossovers along with volumes indicating positive momentum to continue in the counter. Oscillator on daily and weekly chart depicts bullishness with Stochastic, RSI and MACD generating bullish crossovers.
IRB Infrastructure Developers - BUY : Buying is recommended at CMP of Rs 303 with target of Rs. 320 and stop loss of Rs. 289.8. Stock has been in continues uptrend since December 2009 which is depicted by higher highs and higher lows on its weekly chart. Stock has broken out its rising channel pattern accompanied by above average volumes. Oscillator on weekly chart depicts bullishness with Stochastic and RSI continued its uptrend after generating bullish crossovers while MACD has generated bullish crossovers.
Cipla - BUY : Buying is recommended at CMP of Rs 310.2 with target of Rs 330 with stop loss of Rs. 298.5. Stock is trading at lower end of descending triangle pattern formed on its weekly chart. We expect stock to take support at the base of the triangle. It has formed `hammer` candle stick pattern on its weekly chart with long lower shadow which is generally bullish sigh and indicates demand at lower levels. We have witnessed above average volumes with fresh long build up in last trading session indicating positive momentum in the counter. Oscillator on daily chart depicts bullishness with Stochastic and RSI generating bullishness crossovers that too in oversold territory.
Below listed are 3 group `A` companies which have posted weekly gains consistently for last 5 weeks:Central Bank of India; Shriram Transport Finance Company AND Hindalco Industries
Below listed are 3 group `A` companies which have posted weekly losses consistently for last 5 weeks:
Reliance Power (RPower); ABB & PUNJ LLOYD.
