Nifty In Cool-Off Mode

NSE Nifty:

The NSE Nifty has moved along the expected lines. It walked into a corrective phase after coming within striking distance of the 5829 level (posted an intra-day high of 5815.35 on 5th October, 2012), and still hasn’t been able to take out the aforesaid level. Though the larger picture remains positive, it is rather clear that the Nifty has finally entered a corrective phase after a brilliant five-week rally. The cool-off period is expected to remain in motion unless and until the 5829 level is clearly taken out. This perceived consolidation needs to be taken positively, as a small price/time retracement would be important for the health of the uptrend.

The Mid-Caps and Small-Caps too have entered shallow corrections, and it could take a couple of weeks for this correction to run its course. Banks too have slipped into a correction, but remain relatively resilient. Capital Goods have quietly turned corrective. Consumer Durables have stagnated a bit. FMCG has posted a fresh all-time high, while Healthcare has been positively corrective. IT has clearly been weak and Metals have gone nowhere. Realty too has fallen in line with the rest of the market.

The Nifty has entered a corrective phase (read as a consolidation), making it a ‘buy on declines’ market. 5638 and 5562 are important supports (they need to hold), while a smart upside above the 5829 level is envisaged.[PAGE BREAK]

Bharat Electronics
CMP - Rs 1259.25 | Buy

Bharat Electronics bottomed out by posting an intra-week low of Rs 545.40 during the week ended 28th November, 2008, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 985 during the week ended 2nd April, 2009. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 830 during the week ended 24th April, 2009. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 2252 during the week ended 26th March, 2010.

Currently, Bharat Electronics seems set to stage an up-move 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-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 1233, 1190 | Resistance: 1267, 1299
Targets: 1st Target: 1339 (4-6 weeks) | 2nd Target: 1370 (12-14 weeks)
BSE Code – 500049 | Stoploss: 1219 (cls)
55 Week EMA: 1381.30[PAGE BREAK]

Central Bank
CMP - Rs 75.55 | Buy

Central Bank peaked at an intra-week high of Rs 95.40 during the week ended 31st July, 2009, and declined to post an intra-week low of Rs 84.15 during the week ended 14th August, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 161.01 during the week ended 31st December, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 124.47 during the week ended 2nd July, 2010. The scrip staged a rally to peak at an intra-week high of Rs 224.15 during the week ended 12th November, 2010, and entered a corrective phase.

Currently, Central Bank has reversed direction after receiving significant support at the Rs 72 level. A weekly close above the Rs 81 level would mean the possibility of a further upside from here.

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Sell | ROC-Buy | RSI-Buy
Support: 72, 66 | Resistance: 78, 84
Targets: 1st Target: 85 (4-6 weeks) | 2nd Target: 89 (12-14 weeks)
BSE Code – 532885 | Stoploss: 70 (cls)
55 Week EMA: 87.01[PAGE BREAK]

IFCI
CMP - Rs 30.40 | Buy

IFCI bottomed out by posting an intra-week low of Rs 15.80 during the week ended 13th March, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 60.55 during the week ended 5th June, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 50 during the week ended 9th July, 2010. It moved sideways before recovering to peak at an intra-week high of Rs 80.55 during the week ended 12th November, 2010, only to decline from here.

Currently, IFCI seems to be on the verge of continuing its higher top, higher bottom formation on the intra-day charts, indicating the possibility of a further upside from these levels.

Trading Pointers:
Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 30, 28 | Resistance: 33, 37
Targets: 1st Target: 36 (4-6 weeks) | 2nd Target: 39 (12-14 weeks)
BSE Code – 500106 | Stoploss: 27 (cls)
55 Week EMA: 35.79[PAGE BREAK]

Piramal Enterprises
CMP - Rs 464.10 | Buy

Piramal Enterprises bottomed out by posting an intra-week low of Rs 249.50 during the week ended 29th May, 2009, took support at the Rs 250 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 395.10 during the week ended 11th December, 2009. The scrip declined from here, struggled a bit, and finally overcame its recently-posted high. It entered a medium-term uptrend, appreciated to peak at an intra-week high of Rs 599.90 during the week ended 21st May, 2010, and entered a corrective phase.

Currently, Piramal Enterprises could be commencing a short-term uptrend. With the oscillators looking positive, a further upside from these levels cannot be ruled out.

Trading Pointers:
Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 461, 443 | Resistance: 479, 498
Targets: 1st Target: 494 (4-6 weeks) | 2nd Target: 510 (12-14 weeks)
BSE Code – 500302 | Stoploss: 449 (cls)
55 Week EMA: 456.15