Archives : NIFTY TARGET 6335-6568. 07/12/2007
NIFTY TARGET 6335-6568. 07/12/2007
Markets tested the resistance levels mentioned by us and finally managed to breakout past those levels and make a new high for the Nifty. Nifty made a new high of 6042 during the week and the Sensex is just hovering under the all time highs and managed a high of 20094 during the week, it will of course challenge the previous high during next week.
MOMENTUM IS BACK.
RPL & RNRL ARE BACK.
HOT SECTORS – SUGAR AND REALTY.
FAST MULTIBAGGERS – STERLITE OPTIC AND ROLTA.
HOW TO TRADE?
LAST WEEK’S RECOMMENDATIONS:
THIS WEEK’S RECOMMENDATIONS:
MOMENTUM IS BACK.
Markets are back in momentum mode. Markets are exhibiting strength on the back of FII’s finally turning into buy mode. Domestic funds have also been supportive as they continue to buy. Markets have consolidated enough and have given a breakout, which will take it to next level. It will be interesting to see which sectors and stocks lead this rally. The previous momentum kings are Capital goods and Reliance group. Lets see whether they are able to hold on to the leader status, or new leaders emerge. RPL & RNRL ARE BACK. The darlings are back. These stocks were favourites of the punters and now both these stocks are on verge of regaining their lost position as momentum favourites. RPL, if is able to close above 244 levels then it will be on the way to test previous high and go for possible target OF 326-370. RNRL is also exhibiting similar formation and the indicators suggest that once the stock is able to close above 180 levels, then the possible targets will be as high as 217-245. HOT SECTORS – SUGAR AND REALTY.
In the past week, the beaten down sectors made a come back. The Realty sector after being down for so long made a fantastic comeback along with the sugar sector. Leaders in the realty sector like DLF and Unitech have posted nice breakouts. Also stocks like Mahindra Gesco, Peninsula land, Sobha and Parsvanath are making a comeback DLF has a short to medium term target of 1200, while that of Unitech is 500 and Parsvanath is 500. Sugar stocks like Renuka are going back to the 4-digit mark medium term target is 1100-1530, Triveni short to medium term target is 230 and Bajaj Hind has a target of 352 in the medium term.
FAST MULTIBAGGERS – STERLITE OPTIC AND ROLTA. Sterlite Optic (356) and Rolta (745) should be considered for a medium term to long term view. Both stocks have consolidated over number of years and have now come out of that and are fast covering lost ground. In the process, investors and traders should buy these stocks with multibagger potential. Sterlite Optic has a target of 519 in the medium term. In the long term it can reach 824-944. Rolta has a medium to long term target of 944. SENSEX. Sensex opened the week at 19547, made a high of 20094, low of 19446 and closed the week at 19966. The weekly gain for the Sensex was 603 points. The Sensex managed to close above the resistance level of 19681 mentioned last week after nearly three attempts. The Sensex then flirted with 20000 mark and is now on the way to test the previous high. The Sensex has a minimum target of 21249 and can extend the gains upto 22294. There is a trendline support that exists at 19695. The MACD has already given a buy signal and is now moving in positive territory. RSI is around 62 and is indicating further momentum. For the week ahead resistance is at 20238-20597-20890-21102. Support is at 19706-19560-19446. NIFTY. Nifty opened the week at 5765, managed a high of 6042, low of 5754 and closed the week at 5974. The weekly gain for the Nifty was 212 points. The Nifty once it crossed its resistance level 5915 mentioned last week, went on to make a new high. The Nifty has a short term minimum target of 6335 and that may get extended upto 6568. There is a trendline resistance at 6087 and trendline support at 5943. The MACD has already given a buy signal and is now moving in positive territory and the RSI is showing that the markets will get into momentum mode next week. The Nifty OI PCR is at 1.25 and is indicative that there are some hedged positions which will act as cushion in case of a downfall. The Nifty futures have turned into premium of 15 points, indicating some short covering. Lot of Put writing is seen at the strikes of 5900 and 5800, which act as support going forward. For the week ahead, resistance is at 6087-6179-6274-6344. Support is at 5943-5894-5840-5754. HOW TO TRADE? Nifty is looking bullish and so we suggest a bull call spread for the Nifty options. Also one can go for a naked OTM Call for Nagarjuna Fertiliser 83 which has a target of 101. LAST WEEK’S RECOMMENDATIONS: Once again FANTASTIC, 100 % SUCCESS. THREE CHEERS TO OUR READERS. EDUCOMP @3583 TGT 4195 REACHED 4310 !!!! ALOK IND @ 76 TGT 83 REACHED 85. BALRAMPUR CHINI @ 100 TGT 107 REACHED 107. NEYVELLI LIG @ 235 TGT 261 REACHED 269!!!. GITANJALI @ 436 TGT 462 REACHED 480. LANCO INFRA @ 531 TGT 565 REACHED 595!!! ROLTA @ 733 TGT 770 REACHED 790. THIS WEEK’S RECOMMENDATIONS: BAJAJ HIND 237 SL 228 TGT 247-259. TRIVENI SUGAR 165 SL 156 TGT 179-198-212. RENUKA SUGAR 844 SL 785 TGT 917-985. RCOM 734 SL 721 TGT 770-814. RPL 225 SL 221 TGT 234-242-247. TATA POWER 1323 SL 1290 TGT 1399-1508. STERLITE OPTIC 356 SL 323 TGT 376-388-399. NAGARJUNA FERT 83 SL 80 TGT 93-101.