Archives : IIP PLAYS SPOIL - SPORT - 11/12/2009.
IIP PLAYS SPOIL - SPORT – 11/12/2009. 

The market was consolidating near the top end of the range before it could take a shot at the previous intermediate top (Nifty 5181). On Friday, the Nifty looked set to challenge the previous top and close above it, but the lower than expected IIP number played the party pooper. This led to unexpected profit booking in the mid-caps as well as index heavy weights. The IIP numbers for Oct came in at 10.3% which was slightly lower than the market expectation of 12.5%. But still a double digit IIP number cannot be dismissed as a disappointment.

 
IIP PLAYS SPOIL - SPORT – 11/12/2009. 

The market was consolidating near the top end of the range before it could take a shot at the previous intermediate top (Nifty 5181). On Friday, the Nifty looked set to challenge the previous top and close above it, but the lower than expected IIP number played the party pooper. This led to unexpected profit booking in the mid-caps as well as index heavy weights. The IIP numbers for Oct came in at 10.3% which was slightly lower than the market expectation of 12.5%. But still a double digit IIP number cannot be dismissed as a disappointment.

5152-5181 – THE SUPPLY ZONE. 

One interesting aspect is that the Nifty still remains in a short to medium term uptrend and it will continue to do so, until the sequence of higher bottom formation is broken. 5152-5181 is proving to be a very strong supply zone and the Nifty has been trying to breach this zone since October, but all the attempts have been unsuccessful. A breakout will be seen once the Nifty is able to breach and close above the very critical level of 5182, till then the consolidation will continue.

SENSEX. 

The Sensex opened the week at 17106, made a high of 17351, a low of 16943 and closed the week at 17119. The Sensex closed the week with a small gain of 18 points. The Sensex has formed a Doji on the weekly chart which is indicative of uncertainty and indecision. The uncertainty is regarding the continuation of uptrend which will now be decided by the formation of next week’s candle.

 

On the daily charts, the Sensex has formed a very small black body formation which is a neutral formation with a slightly long upper shadow. The long upper shadow is indicative of the selling pressure felt when the Sensex was near its high.

 

The Sensex is still above its 50dma (16832) and hence one can expect strong support at that level. One can expect a correction if this level is breached on a closing basis.

                   

The Sensex has been moving up in an upward sloping channel. The lower end of the channel which falls at 16131 should act as strong support in case of a downfall.

 

The RSI (54) is still showing some strength whereas the MACD, even though positive has just given a Sell signal. The ROC has given a Sell signal and has just entered the negative territory. The ADX (13) is extremely low and suggests the trend is almost listless. The indicators are painting a mixed picture.

 

Strong Trendline Support for Sensex is at 16773-16659. Trendline Resistance is at 17331.

For the week ahead, Sensex will face Resistance at 17290-17361-17494. Sensex will find Support at 16943-16832-16635. 

 

NIFTY. 

The Nifty opened the week at 5108, made a high of 5182, a low of 5051 and closed the week at 5117. The Nifty closed the week with a small gain of 9 points. The Nifty has formed a Doji on the weekly chart which is indicative of uncertainty and indecision. The uncertainty is regarding the continuation of uptrend which will now be decided by the formation of next week’s candle.

 

On the daily charts, the Nifty has formed a very small black body formation which is a neutral formation with a slightly long upper shadow. The long upper shadow is indicative of the selling pressure felt when the Nifty was near its high.

 

The Nifty is still above its 50dma (5002) and hence one can expect strong support at that level. One can expect a correction if this level is breached on a closing basis.

                   

The Nifty has been moving up in an upward sloping channel. The lower end of the channel which falls at 4779 should act as strong support in case of a downfall.

 

The indicators are painting a better picture in comparison to the Sensex as the MACD and ROC have not yet given a Sell signal, while the RSI continues to be at 56.

 

Strong Trendline Support for Nifty is at 4971-4903. Trendline Resistance is at 5181.

 

Nifty O.I.PCR is at 1.36. Strong CALL writing is visible at strike of 5200 which is acting as strong resistance. Strong PUT writing is seen at 4800 strike which should act as support.

For the week ahead, Nifty will face resistance at 5152-5181-5247. Nifty will find support at 5051-5003-4932. 

INDEX LEVELS: 

 S3S2S1CLOSER1R2R3
Nifty4932500350515117515251815247
Sensex16635168321694317119172901736117494

  

LAST TIMES RECOMMENDATIONS: 

STOCKReco. PriceTgtReachedLot SizeProfit
Buy Biocon2913032991800Rs.14,400
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    ProfitRs.81,818

THIS WEEK’S RECOMMENDATIONS: 

PAIR NO.

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1BuyJindal Steel744731758782
SellICICI Bank864883844831
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SellHDFC2695274026502605
3Buy Bharat Forge273268283294
SellLIC Hsg811825796766

WATCH OUT FOR:  

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