Nifty Continues Its Gradual Upward March

NSE Nifty

The NSE Nifty has once again moved on expected lines to run into resistance at the 6000-6200 level. It has continued to make gradual progress, while the 5829 has remained sacrosanct. Even now, the outlook continues to remain positive, while the slow gains are a direct result of the above-mentioned congestion area as the shackles haven’t been completely broken, so to speak.

The Mid-Caps and Small-Caps seem to have fallen out of favour and have stagnated for the time being, besides cooling off significantly from their recent highs. Banks have gone nowhere in the last three weeks. Capital Goods seem to be in a minor recovery mode after a three-week decline, and a near-term oversold situation would point to a limited downside. Consumer Durables have been corrective, but rather complacent. FMCG is bouncing back after a six-week decline, while sustainability is slightly suspect. Healthcare seems overbought and heavy, and IT has reflected resilience by sitting on stupendous gains. Metals have made heavy weather to reverse rather suddenly, and Realty too has gained ground over the last fortnight.

The Nifty has continued to inch ahead in what is a clear intermediate uptrend. Despite a mild overbought situation, the outlook retains its positive bias as long as it remains above the 5926 level.
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CESC | CMP - Rs 327.85 | Buy

CESC bottomed out by posting an intra-week low of Rs 186.30 during the week ended 30th December, 2011, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 301.80 during the week ended 17th February, 2012. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 246.60 during the week ended 3rd March 2012. The scrip commenced its uptrend from here and rallied to peak at an intra-week high of Rs 345.50 during the week ended 26th October, 2012. Currently, CESC 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: 322, 301 | Resistance: 347, 373
Targets: 1st Target: 361 (4-6 weeks) | 2nd Target: 385 (12-14 weeks)
BSE Code – 500084 | Stoploss: 310 (cls)
55 Week EMA: 298.98
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GMR Infra | CMP - Rs 20.20 | Buy

GMR Infra peaked at an intra-week high of Rs 42.58 during the week ended 13th February, 2009, and declined to post an intra-week low of Rs 33.55 during the week ended 6th March, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 61.85 during the week ended 24th April, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 52.67 during the week ended 15th May, 2009. It staged a rally to peak at an intra-week high of Rs 91.75 during the week ended 5th June, 2009, and entered a corrective phase. Currently, GMR Infra has reversed direction after receiving significant support from the Rs 18 level. A weekly close above the Rs 22 level would mean the possibility of a further upside from here.

Trading Pointers

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 17.50, 14.40 | Resistance: 24.20, 27.12
Targets: 1st Target: 24 (4-6 weeks) | 2nd Target: 26 (12-14 weeks)
BSE Code – 532754 | Stoploss: 18 (cls)
55 Week EMA: 23.31
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Mahindra Satyam | CMP - Rs 118.35 | Buy

Mahindra Satyam bottomed out by posting an intra-week low of Rs 54.40 during the week ended 11th February, 2011, commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 78.95 during the week ended 15th April, 2011. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 68.75 during the week ended 6th May, 2011. It moved sideways before recovering to peak at an intra-week high of Rs 116.40 during the week ended 5th October, 2012, 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: 103, 86 | Resistance: 129, 141
Targets: 1st Target: 134 (4-6 weeks) | 2nd Target: 141 (12-14 weeks)
BSE Code – 500376 | Stoploss: 110 (cls)
55 Week EMA: 94.14
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Neyveli Lignite | CMP - Rs 86.60 | Buy

Neyveli Lignite bottomed out by posting an intra-week low of Rs 60.40 during the week ended 2nd January, 2009, took support at the Rs 60 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 104.70 during the week ended 17th April, 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 180.65 during the week ended 15th October, 2010, and entered a corrective phase. Currently, Neyveli Lignite could be continuing its short 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: 85, 74 | Resistance: 98, 111
Targets: 1st Target: 95 (4-6 weeks) | 2nd Target: 105 (12-14 weeks)
BSE Code – 513683 | Stoploss: 82 (cls)
55 Week EMA: 94.14