Nifty Makes Massive Moves

The Nifty has witnessed a consistently northward move over the past few days, after it broke the bullish crossover at the 6050 level. In the current scenario, the index has managed to hold its gains and continues to surge forward. The market’s confidence shows that it has a short-term positive bias. On the other hand, the domestic macro-economic data (IIP and WPI) has disappointed the street. Going ahead, the market will be eyeing the RBI’s policy announcement on October 29, 2013.

Most of the sectors have shown a good recovery. Auto and IT were the strongest performers in this scenario, pulling the index on the higher side. Bankex also rose from its low. The Mid-Cap and Small-Cap indices broke out of their consolidation phase and provided good support to the market. Capital Goods and Oil & Gas both saw nominal up-moves. However, Consumer Durables, Metals and FMCG saw side-ways movement.

As we mentioned in our last update, the Nifty was trading around its crucial 100-day and 50-day EMA levels (around 5750). From here, the market took support at the lower level and crossed the 6100 level.

Going ahead, the index may continue to see the current bull grip till it remains above the technical level of 5970. The weekly chart also shows a rising bullish pattern, indicating that the index may cross its lifetime high. On the upper side, the index has a major resistance around the psychological level of 6200-6250.
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Fortis Healthcare | CMP – Rs 104 | Buy

Fortis Healthcare topped out by posting an intraday high of Rs 119.40 as on December 18, 2012, and these levels has been rarely seen. The stock commenced a downtrend and formed a bottom at an intraday low of Rs 83.55 as of June 27, 2013. The scrip then witnessed a good pullback rally and registered an intraday high of Rs 103.45 as on July 19, 2013. It entered into a consolidation phase and was trading in narrow range of Rs 94-100 for over two months. One can initiate a long position in the stock with a stoploss of Rs 96, for possible up-move to Rs 111-119.

Currently, the stock has given a fresh breakout and a confirmation of the same is provided by a bullish candlestick pattern and an increase in volumes. With the oscillators looking positive, the stock may see a further upside ahead.

Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Sell
Support: 100, 96 | Resistance: 108, 114
Targets: 1st Target: 111 (4-6 weeks) | 2nd Target: 119 (12-14 weeks)  
BSE Code – 532843 | Stoploss: 96 (cls)
55 Day EMA: 97.68
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JK Tyre & Industries | CMP - Rs 109 | Buy

JK Tyre & Industries topped out by posting an intraday high of Rs 130.80 as on January 3, 2013, commenced a downtrend, and finally bottomed out after registering an intraday low of Rs 80.55 as on August 28, 2013.  Following this, the stock witnessed a smart pullback rally and has broken multiple tops formed around the Rs 108-109 level along with a rise in volumes as on October 14, 2013. This stock may see a sharp up-move in the near term as it has seen a breakout with good volumes. One can initiate a long position in the stock with a stoploss of Rs 87, for a target of Rs 120-130.

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-Sell | ROC-Buy | RSI-Sell
Support: 98, 87 | Resistance: 115, 120
Targets: 1st Target: 120 (4-6 weeks) | 2nd Target: 130 (12-14 weeks)  
BSE Code – 530007 | Stoploss: 83 (cls)  
55 Day EMA: 95.18
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Wipro | CMP - Rs 501 | Buy

Wipro bottomed out by posting an intraday low of Rs 295 as on November 8, 2012. After this, it entered into a strong uptrend, forming a higher top, higher bottom pattern. The stock registered a swing high by posting an intraday high of Rs 463 as on April 5, 2013, following which it entered into a downtrend, registered a low of Rs 314.85 as on May 31, 2013, and formed a round pattern along with good accumulation. It broke out of this pattern and rallied to register high of Rs 500.60 as on September 3, 2013. The stock formed a double top around the Rs 500 level, and on October 14, it gave a breakout of this double top pattern along with higher than average volumes. This suggests that the stock may see good momentum going ahead as well.

Currently, the stock has given a fresh breakout and the confirmation for the same is provided by a bullish candlestick pattern and an increase in volumes. With the oscillators looking positive, it may see a further upside in the coming trading session.

Trading Pointers:

Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Sell
Support: 490, 470 | Resistance: 510, 540
Targets: 1st Target: 535 (4-6 weeks) | 2nd Target: 550 (12-14 weeks)  
BSE Code – 507685 | Stoploss: 470 (cls)
55 Day EMA: 456.14
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Everest Industries | CMP – Rs 152 | Buy

Everest Industries topped out by posting an intraday high of Rs 283 as on October 10, 2012. It then entered into a major correction and registered a low of Rs 164 as on June 26, 2013. The stock had a good support around the Rs 164-166 level, but could not hold these for long. It saw a breakdown and actually bottomed out by registering an intraday low of Rs 121.55 as on August 6, 2013. The stock saw a good rally from its 52-week low, and has now seen a breakout of a triangle pattern. On October 14, it formed a big bullish candlestick pattern. Considering the breakout, one can initiate a long position with a stoploss of Rs 138 on a closing basis, for a possible up-move to the Rs 168-175 level.

Currently, the stock has given a fresh breakout and a confirmation for the same is provided by a bullish candlestick pattern. With the oscillators looking positive, the stock can see a further upside ahead.

Trading Pointers:

Indicators: MACD-Buy | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Sell
Support: 140, 137 | Resistance: 155, 171
Targets: 1st Target: 168 (4-6 weeks) | 2nd Target: 175 (12-14 weeks)  
BSE Code – 508906 | Stoploss: 138(cls)
55 Day EMA: 146.88