Nifty Recovers From Lower End, Chokes Around 5900

The NSE Index has witnessed a recovery from the lower level, as we had hoped it would in our last update. The index bottomed out before our expectations, pulled back and again crossed its 200-day EMA level (5750). In the current market scenario, the Nifty is consolidating near its 100-day EMA and 50-day EMA level, which is around 5850. It is getting stuck around the 5900 mark, seeing a sell-off and losing all its gains on touching this level. Overall though, the outlook is positive and the scenario may turn bullish once the market breaks this psychological level.

Among the sectoral indices, Heathcare has outperformed, followed by FMCG. Oil & Gas gained from policy action, and IT made smart up-moves over rupee depreciation. Capital Goods saw gradual progress, while Mid-Caps and Small-Caps also registered some recovery. Consumer Durables, Auto and Metal witnessed sideways movement. Bankex was the most volatile among all the sectors.

The market has broken all its resistances in the last week, but is struggling at the current levels. Going ahead, 5940 is the first hurdle for the index, following which the 5970 level is a bullish crossover on the charts. If the index crosses and stays above this level, it may touch 6050 before the July expiry.
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Apollo Hospitals Enterprise | CMP – Rs 954.80 | Buy

Apollo Hospitals Enterprise bottomed out by posting an intraday low of Rs 607.05 as on August 10, 2012, and these levels have rarely been seen since. The stock launched into an intermediate uptrend to peak at an intraday high of Rs 902.05 as on November 27, 2012. It couldn’t sustain these levels for long and declined to post an intraday low of Rs 766.60 as on January 21, 2013. The stock entered into a six-month consolidation phase and found a strong base around Rs 766-780 levels. It resumed its uptrend and registered a high of Rs 1098 as on May 17, 2013, making a fresh 52-week high.

Currently, Apollo Hospitals seems to set to stage an up-move after a decent consolidation. With daily and weekly picture looking better, a further upside from these levels cannot be ruled out.

Trading Pointers:

Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Sell | RSI-Buy |
Support: 932, 900 | Resistance: 992, 311
Targets: 1st Target: 1010 (4-6 weeks) | 2nd Target: 1050 (10-11 weeks)  
BSE Code – 508869 | Stoploss: 910 (cls)
55 Day EMA: 945.48
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Sun Pharmaceutical Industries | CMP - Rs 1042.65 | Buy

Sun Pharmaceutical Industries bottomed out by posting an intraday low of Rs 605.75 as on July 25, 2012, and these levels have rarely been seen since. The stock launched into an intermediate uptrend to peak at an intraday high of Rs 775.90 as on December 20, 2013. It couldn’t sustain these levels for long, and declined to post an intraday low of Rs 694 as on January 21, 2013. The stock entered into a minor consolidation phase, after which it resumed its uptrend and formed a higher top, higher bottom pattern. It registered a fresh 52-week high of Rs 1085 as on May 30, 2013, and then went into a minor correction and found support at rising channel.

Currently, Sun Pharmaceutical seems to set to stage an up-move after a decent consolidation. With the daily and weekly 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-Sell |
Support: 1020, 958 | Resistance: 1082, 1110
Targets: 1st Target: 1140 (4-6 weeks) | 2nd Target: 1220 (12-14 weeks)  
BSE Code – 524715 | Stoploss: 960 (cls)
55 Week EMA: 967.47
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Havells India | CMP - Rs 750 | Buy

Havells India bottomed out by posting an intraday low of Rs 528.40 as on August 28, 2012, and these levels have rarely been seen since. The stock launched into an intermediate uptrend to peak at an intraday high of Rs 708.35 as on October 17, 2012. It couldn’t sustain these levels for long, and declined to post an intraday low of Rs 564.10 as on October 30, 2012. The stock entered into minor consolidation phase and found a strong base around the Rs 564-572 levels. It resumed an uptrend and registered a high of Rs 706 as on February 15, 2013, making a double top pattern. The stock gave a breakout of a double top pattern as on May 28, 2013, along with volumes.

Currently, Havells India seems to continue its uptrend for the medium term. With the oscillators looking positive, a further upside from these levels cannot be ruled out.

Trading Pointers:

Indicators: MACD-Sell | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy |
Support: 723, 700 | Resistance: 760, 810
Targets: 1st Target: 810 (4-6 weeks) | 2nd Target: 840 (12-14 weeks)  
BSE Code – 517354 | Stoploss: 703 (cls)
55 Day EMA: 702.71
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HCL Technologies | CMP - Rs 818.80 | Buy

HCL Technologies has bottomed out by posting an intraday low of Rs 471.45 as on July 18, 2012, and these levels have rarely been seen since. The stock launched into an intermediate uptrend and registered a high of Rs 689.60 as on January 17, 2013. It could not sustain this level for long and posted an intraday low of Rs 652 as on February 11, 2013. The stock made a double bottom around the Rs 652-654 level and entered into an intermediate uptrend. It made multiple tops in the zone of Rs 800-810 and saw higher highs. The stock has finely given a breakout of a triangle pattern.

Currently, the scrip seems to set to stage an up-move after a decent consolidation. With the daily and weekly 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-Sell |
Support: 810, 770 | Resistance: 835, 850
Targets: 1st Target: 860 (4-6 weeks) | 2nd Target: 880 (12-14 weeks)  
BSE Code – 532281 | Stoploss: 768 (cls)
55 Day EMA: 751