Archives : MARKET CLOSES THE YEAR ON A HIGH - 31/12/2009.

MARKET CLOSES THE YEAR ON A HIGH - 31/12/2009.

May the New Year bring U Success, Happiness & Prosperity. Happy New Year and Happy Investing & Trading. 

  • WHAT TO WATCH OUT FOR IN 2010.
  • TECHNICALLY SPEAKING.
  • INDEX LEVELS:
  • LAST WEEK’S RECOMMENDATIONS
  • THIS WEEK’S RECOMMENDATIONS:
  • WATCH OUT FOR:

  • ANNUAL OUTLOOK – 24/12/2009.

    TO READ FULL ARTICLE CLICK 'MORE':


  • MARKET CLOSES THE YEAR ON A HIGH - 31/12/2009.
  • May the New Year bring U Success, Happiness & Prosperity. Happy New Year and Happy Investing & Trading.
  • The lady luck is smiling on the market and how. Who would have thought in their wildest imagination that the Sensex which was in four digits at the beginning of the year, would close the year above 17400. Both Sensex and Nifty gained upwards of 75% for the year. The good news is that the market is showing good strength and has closed at the highs of the year. This augurs well for the beginning of the next year and we hope the year 2010 turns out to be as bullish as the year 2009.
 ·       WHAT TO WATCH OUT FOR IN 2010. 
  • The market will keenly watch the first quarter results, which should propel the rally further. If there are any negative surprises in the results, the market will definitely punish those companies. The other major concern will be inflation which is constantly on rise. This may force the RBI to increase the rate of interest sooner rather then later. The other major trigger for the market will be the budget. The FM will have a tough job to meet the market expectations which are already running very high.
 ·       TECHNICALLY SPEAKING. 
  • The Sensex opened the week at 17388, made a high of 17530 a low of 17322 and closed the week at 17464. The Sensex closed with a weekly gain of 104 points. Similarly Nifty opened the week at 5180, made a high of 5221, a low of 5160 and closed the week at 5201. The Nifty closed with a weekly gain of 23 points. Since it was a truncated week and traders were in a festive mood the volumes were also very less because of low participation. As a result both Sensex and Nifty formed a small white body candle almost like a Spinning Top on the weekly charts which is a neutral formation.
 
  • Even though the candle body formed on the weekly charts is small the critical part is both Sensex and Nifty have not only closed above the Ascending Triangle breakout line but also above a weekly Trendline starting from Sensex 17735 ( May 2008) to 17493 ( Oct 2009); and as for the Nifty 5368 ( May 2008) to 5181 ( Oct 2009).
 
  • If we consider the entire fall for the Sensex from 21206-7697, then the next retracement target will be at 78.6% of this fall and which is at 18315. Similarly the 78.6% of the entire fall of the Nifty (6357-2252) falls at 5478. In short, both Sensex and Nifty can be expected to move towards 18315 and 5478 respectively.
 
  • The current formation for both the indices resembles a Flag pattern which is a continuous pattern. According to this pattern the target for Sensex will be 18231 and Nifty 5431.
 
  • If we look at the broader picture, then both Sensex and Nifty have given an Ascending Triangle breakout. The target for which will be Sensex 18740 on the lower side and 19299 on the higher side; and for the Nifty 5586 on the lower side and 5717 on higher side.
 
  • All the major indicators are in Buy mode and are signaling further momentum. The MACD, ROC & RSI are already in buy mode while OBV has just given a buy signal.
 
  • The Trendline support for Sensex is at 17281-16845.
  • The Trendline support for Nifty is at 5165-5030.
 
  • For the week ahead, Sensex will face resistance at 17650-18045-18315 and will find support at 17322-17180-17027.
 
  • For the week ahead, Nifty will face resistance at 5268-5311-5368 and will find support at 5160-5119-5051.
 
  • INDEX LEVELS:
 
 S3S2S1CLOSER1R2R3
Nifty5051511951605201526853115368
Sensex17027171801732217464176501804518315
 ·       LAST WEEK’S RECOMMENDATIONS 
  • Since it was a truncated week almost all targets were achieved except Tata Steel and GMDC.
STOCKReco. PriceTgt ReachedLot SizeProfit
Buy Tata Steel615632628764Rs.9,932
Buy Titan141914761478206Rs.12,154
Buy BEML109111371142375Rs.19,125
Buy GMDC1491601553000Rs.18,000
Buy Siemens579591598752Rs.14,288
    TotalRs.73,499
 
  •    THIS WEEK’S RECOMMENDATIONS: 
STOCKCMPSLTgt-1Tgt-2
Buy Bhel2403238224352467
Buy Nalco417408431443
Buy BEL1941192019812025
Buy Nag Cons165162170177
Buy Bajaj Auto1754173117921834

 ·       WATCH OUT FOR:

 

 
Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

Copyright © 2000 - 2018 Jatin Sanghavi. All rights reserved.
No part of the material on this website may be reproduced or distributed in any forms or by any means, electronics or mechanical without the written permission of the author.
Sitemap