Nifty Remains Correctively Range-Bound

NSE Nifty:

The NSE Nifty has expanded its range a bit, but the effort has still come to naught as the bigger picture remains a sideways corrective movement. Despite a few attempts, a decisive breakout hasn’t yet occurred, while the picture has acquired a mildly negative tinge for the time being. The new, slightly bigger range has 5585 on the downside and 5820 on the upside. Needless to say, a clear and decisive close is needed above or below this aforesaid trading range for a directional move to manifest itself, while some near-term pressure can be expected.

The Mid-Caps and Small-Caps too have remained corrective (read as range-bound), but this time round, the latter are relatively weaker. Banks remain corrective but have been relatively strong. Capital Goods are also corrective but with a distinct negative bias. Consumer Durables has posted a fresh all-time high. FMCG seems to have entered a short-term corrective phase, while Healthcare too has posted a fresh all-time high. IT has slipped into a nondescript movement. Metals have maintained their weakness and could see some more pressure. Realty has been exceptionally solid this time.

The Nifty has continued its protracted sideways movement and has not yet shown any inclination of giving a breakout (on either side). It would be better to wait on the sidelines for a clearer picture to emerge.[PAGE BREAK]

Ashok Leyland | CMP - Rs 25.70 | Buy

Ashok Leyland bottomed out by posting an intra-week low of Rs 22.95 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 35.17 during the week ended 14th May, 2010. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 28.08 during the week ended 28th May, 2010. The scrip then commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 40.95 during the week ended 12th November, 2010.

Currently, Ashok Leyland seems set to stage an up-move after a decent weekly consolidation. With even the monthly 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: 25, 22 | Resistance: 28, 31
Targets: 1st Target: 30 (4-6 weeks) | 2nd Target: 32 (12-14 weeks)
BSE Code – 500477 | Stoploss: 23 (cls)
55 Week EMA: 25.15[PAGE BREAK]

GSPL | CMP - Rs 74.60 | Sell

GSPL peaked at an intra-week high of Rs 55.90 during the week ended 19th June, 2009, and declined to post an intra-week low of Rs 48.40 during the week ended 17th July, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 98.50 during the week ended 27th November, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 82 during the week ended 26th February, 2009. It staged a rally to peak at an intra-week high of Rs 128.25 during the week ended 22nd October, 2010, and entered a corrective phase.

Currently, GSPL has reversed direction after receiving significant resistance from the Rs 77 level. A weekly close below the Rs 74 level would mean the possibility of a further downside from here.

Trading Pointers:
Indicators: MACD-Sell | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 74, 70 | Resistance: 78, 83
Targets: 1st Target: 69 (4-6 weeks) | 2nd Target: 66 (12-14 weeks)
BSE Code – 532702 | Stoploss: 78 (cls)
55 Week EMA: 78.61[PAGE BREAK]

Sun TV | CMP - Rs 328.80 | Sell

Sun TV bottomed out by posting an intra-week low of Rs 210 during the week ended 17th July, 2009, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 329.90 during the week ended 9th October, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 304 during the week ended 20th November, 2009. It moved sideways before recovering to peak at an intra-week high of Rs 556.50 during the week ended 7th January, 2011, only to decline from here.

Currently, Sun TV seems to be on the verge of continuing its lower top, lower bottom formation on the daily charts, indicating the possibility of a further downside from these levels.

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Sell | ROC-Sell | RSI-Sell
Support: 322, 301 | Resistance: 342, 361
Targets: 1st Target: 303 (4-6 weeks) | 2nd Target: 294 (12-14 weeks)
BSE Code – 532733 | Stoploss: 342 (cls)
55 Week EMA: 313.52[PAGE BREAK]

Welspun Corp | CMP - Rs 100.55 | Buy

Welspun Corp bottomed out by posting an intra-week low of Rs 49.10 during the week ended 6th March, 2009, took support at the Rs 50 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 243.70 during the week ended 5th June, 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 296.35 during the week ended 20th November, 2009, and entered a corrective phase.

Currently, Welspun Corp 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-Buy | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 96, 91 | Resistance: 105, 113
Targets: 1st Target: 110 (4-6 weeks) | 2nd Target: 116 (12-14 weeks)
BSE Code – 532144 | Stoploss: 95 (cls)
55 Week EMA: 117.50