Nifty Posts Further Gains

NSE Nifty:

The NSE Nifty has moved exactly along the expected lines. It has given brief corrections from time to time, but has continued its upward march, though the intensity of the progress has slowed down just a wee bit. The outlook continues to remain positive and a further upside from these levels cannot be ruled out. In the extreme near term, sustainability (in terms of closing) above the 5638 level would go a long way in keeping both the sentiment as well as the momentum sanguine. Amazingly enough, the Nifty has kept its series of progressively higher tops and bottoms unscathed and intact, pointing towards the continuation of its intermediate uptrend.

The Mid-Caps and Small-Caps have gone from strength to strength and have entered full fledged intermediate uptrends. Banks have been at the forefront of the upmove and continue to show a lot of strength. Capital Goods to have caught up smartly and Consumer Durables too have gained ground. FMCG has once again posted a fresh all- time high, while Healthcare has just walked into a correction and IT has also corrected. Metals have moved up but haltingly. Realty has been a positive surprise this time around.

The Nifty has progressed and is expected to continue to do so, while significant resistance is expected at the 5829 level. A further upside would hinge on the ability of the Nifty to absorb selling from this aforesaid level.[PAGE BREAK]

Bharat Forge
CMP - Rs 309.20 | Buy

Bharat Forge bottomed out by posting an intra-week low of Rs 232 during the week ended 26th February, 2010, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 341.30 during the week ended 23rd July, 2010. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 305.85 during the week ended 30th July, 2010. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 412.90 during the week ended 3rd December, 2010. Currently, it seems set to stage an upmove after a decent weekly consolidation. With even the daily picture looking better, a further upside from these levels cannot be ruled out.

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 298, 283 | Resistance: 320, 340
Targets: 1st Target: 339 (4-6 weeks) | 2nd Target: 355 (12-14 weeks)
BSE Code – 500493 | Stoploss: 294 (cls)
55 Week EMA: 301.13[PAGE BREAK]

Engineers India
CMP - Rs 243.85 | Buy

Engineers India peaked at an intra-week high of Rs 177.73 during the week ended 5th June, 2009, and declined to post an intra-week low of Rs 140.53 during the week ended 10th July, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 400.93 during the week ended 22nd January, 2010, only to enter a corrective phase, and declined to post an intra-week low of Rs 307.10 during the week ended 26th February, 2010. The scrip staged a rally to peak at an intra-week high of Rs 538 during the week ended 7th May, 2010, and entered a corrective phase. Currently, Engineers India has reversed direction after receiving significant support from the Rs 225 level, and a weekly close above the Rs 250 level would mean the possibility of a further upside from here.

Trading Pointers:
Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 233, 219 | Resistance: 251, 268
Targets: 1st Target: 267 (4-6 weeks) | 2nd Target: 285 (12-14 weeks)
BSE Code – 532178 | Stoploss: 231 (cls)
55 Week EMA: 242.06[PAGE BREAK]

Federal Bank
CMP - Rs 449.70 | Buy

Federal Bank bottomed out by posting an intra-week low of Rs 233.80 during the week ended 8th January, 2010, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 288 during the week ended 22nd January, 2010. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 250 during the week ended 26th March, 2010. Federal Bank moved sideways before recovering to peak at an intra-week high of Rs 501 during the week ended 5th November, 2010, only to decline from here. Currently, the scrip seems to be on the verge of continuing its higher top, higher bottom formation on the daily charts, indicating the possibility of a further upside from these levels.

Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 441, 420 | Resistance: 467, 499
Targets: 1st Target: 479 (4-6 weeks) | 2nd Target: 499 (12-14 weeks)
BSE Code – 500469 | Stoploss: 434 (cls)
55 Week EMA: 413.85[PAGE BREAK]

MphasiS
CMP - Rs 414.95 | Buy

MphasiS bottomed out by posting an intra-week low of Rs 205.10 during the week ended 24th April, 2009, took support at the Rs 205 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 416 during the week ended 3rd July, 2009. The scrip declined from here, struggled a bit, and finally overcame its recently-posted high. It entered a medium-term uptrend, and appreciated to peak at an intra-week high of Rs 778.60 during the week ended 13th November, 2009, and entered a corrective phase. Currently, Federal Bank could be commencing its medium-term uptrend. With the oscillators looking positive, a further upside from these levels cannot be ruled out.

Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 400, 377 | Resistance: 429, 454
Targets: 1st Target: 454 (4-6 weeks) | 2nd Target: 470 (12-14 weeks)
BSE Code – 526299 | Stoploss: 394 (cls)
55 Week EMA: 392.64