Archives : SENSEX HEADED TOWARDS 21494-22110.- 04/01/08

                SENSEX HEADED TOWARDS 21494-22110.

04/01/08

                Markets are back where they belong as bulls made merry and welcomed the New Year with a bang. Bulls made the bears pay and the markets rejoiced once again. After lot of global uncertainity, Sensex ended the week with a gain of 480 points and Nifty ended the week with a gain of 195 points. Indices are headed towards higher levels.

  • RELIANCE POWER IPO FUELS RALLY.
  • SCRIPTS SHOWING GOOD UPSIDE POTENTIAL.
  • RPL & RNRL BACK ON THE TRADING RADAR.
  • SENSEX.
  • NIFTY. 
  • HOW TO TRADE? 
  • LAST WEEK’S RECOMMENDATIONS: 
  • THIS WEEK’S RECOMMENDATIONS.  
  • R-GROUP RECOMMENDATIONS: 
  • CASH STOCK RECOMMENDATIONS:   

RELIANCE POWER IPO FUELS RALLY.

                ADAG group announced the Reliance Power IPO, which led to a spectacular rally in Reliance Energy, which went up by a whopping Rs.450 during the week. This led to a rally in the other power stocks like Tata Power, NTPC, CESC, PFC, Neyveli Lignite, Power Grid and PTC to name a few. The IPO for Reliance Power opens on Jan 15th and is open till Jan18th. One can build long position in power stocks with a view till Jan 15th, as all power stocks are technically looking ready to move up in the short term.

SCRIPTS SHOWING GOOD UPSIDE POTENTIAL.

                One stock, which is having a good upside potential, is GTL 305. In the short term the script is headed towards 358 to 429 levels. In the medium term it can head towards 650, provided it stays above 260. ONGC 1343, once it crosses 1385, it will head towards 1657, it should remain above 1210. SUZLON Energy 2033, if it stays above 1930, is headed towards 2345-2469. ABAN LLOYD 5389 is headed towards 5925. In the medium term, target is 6520, provided it stays above 4850.

RPL & RNRL BACK ON THE TRADING RADAR.

                After a long hiatus, RPL & RNRL have started to move up. RPL had fallen from 294 levels to almost 188 and now it is recovering that fall, RPL has managed to close above 242 and now it will be headed towards 281-306 in the short to medium term. In the long term, it may head towards 400, provided it stays above 215. RNRL is making new highs and has currently closed at 208. As long as it stays above 185, target of 260 looks easily achievable in the medium to long term.

 SENSEX.

                Sensex opened the week at 20323, made a high of 20762, low of 20077 and closed the week at 20686, notching a weekly gain of 480 points. Sensex maintained the whole week above the 20000 mark without even dipping once below 20000, though it did threaten to come down on weak cues from the US market. The amazing strength is proof that the Indian markets will not collapse if the US economy faces recession and as a matter of fact may be the best place, in the face of global uncertainity, to take shelter in.

The RSI indicator is at 64 and is pointing towards more upside. The MACD is in the positive territory and has just given a buy signal. The trend line support is at 20619-19345. The Sensex could head towards 21494 to 22110 in the short term. The weekly resistance for the Sensex is at 20876-21114-21304-21494. Support is at 20367-20293-20077.  

NIFTY. 

               Nifty opened the week at 6095, made a high of 6300, low of 6060 and closed the week at 6274, thus registering a weekly gain of 195 points. Nifty also maintained the whole week above 6000. Nifty has closed above critical resistance, which was at 6274 and thus it augurs well for the Nifty. The RSI and MACD are pointing towards more upside in the short term. Any dip is a buying opportunity. Nifty is headed towards 6499-6694 in the short term. Nifty Put writing is visible at the 6000 and 6100 strikes, which will act as support in case of a downfall. The trend line support is at 6130-5899-5839. The weekly resistance is at 6326-6379-6439-6499. Support is at 6126-6021-5895. 

 HOW TO TRADE? 

               Buy NTPC 272 ATM call and wait for a target of 325.

LAST WEEK’S RECOMMENDATIONS:  

              Last week was again a case of SUPER SUCCESS.

Alok tgt was 110 and it reached 108 which is fair.

JP Hydro reached 142 will reach the tgt next week,

Arvind reached the tgt 93. 

BEL 2097 TGT 2170 REACHED 2165

TATA STEEL 931 TGT 954 REACHED 957. 

FIN TECH 2578 TGT 2679 REACHED 2699.

NTPC 241 TGT 260 REACHED 279.

WEBEL ENERGY 600 TGT 700 REAHCED 715. 

WHIRLPOOL 56 TGT 63 REACHED 67. 

                THIS WEEK’S RECOMMENDATIONS. 

  •                         CAIRN INDIA 261 SL 254 TGT 272-279. 
  •                GTL 305 SL 291 TGT 319-358-429.
  •                L&T 4248 SL 4131 TGT 4334-4407-4560.  
  •                SIEMENS 1958 SL 1910 TGT 2049-2119.
  •                PRAJ IND 260 SL 248 TGT 265-272-315. 
  •                STERLITE IND 1060 SL 1020 TGT 1127-1176. 
  •                HNDALCO 219 SL 213 TGT 231-244.

                R-GROUP RECOMMENDATIONS: 

  •                        RIL 2993 SL 2924 TGT 3059-3143-3320.
  •                 RCOM 760 SL 740 TGT 775-814-853. 
  •                 RPL 244 SL 235 TGT 257-269-281.  
  •                 RNRL 208 SL 202 TGT 220-233. 
  •                 REL 2514 SL 2445 TGT 2650-2790. 
  •                 REL CAP 2762 SL 2728 TGT 2825-2894. 

                CASH STOCK RECOMMENDATIONS: 

  •                         NITIN FIRE 638 SL 609 TGT 703. 
  •                 SHREE PRECOATED 452 SL 421 TGT 484-503-650.
  •                 PLETHICO 504 SL 485 TGT 527-546-602.
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.

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