Archives : 4448 - A CRITICAL SUPPORT - 05/06/2009.
4448 – A CRITICAL SUPPORT - 05/06/2009.   
  • SENSEX.
  • NIFTY.
  • INDEX LEVELS:
  • LAST WEEK’S RECOMMENDATIONS.

  • THIS WEEK’S RECOMMENDATIONS:

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4448 – A CRITICAL SUPPORT - 05/06/2009.

SENSEX.

Sensex opened the week at 14746, made a high of 15257, made a low of 14599, and closed at 15103, thus registering a weekly gain of 478 points

Sensex has formed a small white candle on the weekly charts, whereas on the daily charts it has formed a ‘Shooting Star’ formation which is indicating of a Bearish reversal pattern.

The Sensex has taken strong support around 14600 levels twice on Tuesday and Thursday and hence this level assumes great significance. If this level is broken then the Sensex can slide all the way down to 13611-13479. 

The Sensex has formed 13 consecutive white candles on the weekly charts and is now slowly losing the momentum. It has been an unprecedented rise as even in the Bull Run the Sensex never formed 13 consecutive white candles on the weekly charts. As the Sensex is slowly losing momentum chances of black candle appearing this week increases.

The momentum indicators are pointing downwards, though not giving sell signal, and are showing signs of tiring out.

The upmove will be seen only seen if the Sensex manages to stay above 15257. Then the pattern wise targets for the Sensex are 15493 and 16342.

The Sensex is retracing the entire fall from 21206-7697 and is now well above the 50% mark (14452) and is now heading towards 16045, which happens to be the 61.8% retracement.

On the downside in a correction the Sensex will take immediate support at 100 Week M.A. which is at 14266 and below which the 200 Week M.A. (12881) will give very strong support.

The Trendline support for the Sensex is at 13182.

For the week ahead the Resistance is at 15332-15579-16045. Support is at 14677-14266-14002. 

 

NIFTY.

Nifty opened the week at 4450, made a high of 4636, low of 4450, and closed at 4587. Thus the weekly gain was 138 points.

Nifty has formed a small white candle on the weekly charts, whereas on the daily charts it has formed a ‘Shooting Star’ formation which is indicating of a Bearish reversal pattern.

The Nifty has taken strong support around 4448 levels twice on Tuesday and Thursday and hence this level assumes great significance. If this level is broken then the Nifty can slide all the way down to 4155-4092.

The Nifty has formed 13 consecutive white candles on the weekly charts and is now slowly losing the momentum. It has been an unprecedented rise as even in the Bull Run the Nifty never formed 13 consecutive white candles on the weekly charts. As the Nifty is slowly losing momentum chances of black candle appearing this week increases.

The momentum indicators are pointing downwards, though not giving sell signal, and are showing signs of tiring out.

The upmove will be seen only seen if the Nifty manages to stay above 4649. Then the pattern wise targets for the Nifty are 4719 and 4926.

The Nifty is retracing the entire fall from 6357-2252 and is now well above the 50% mark (4305) and is now heading towards 4789, which happens to be the 61.8% retracement.

Open Interest build up is seen at 4500 and 4200 PUT which means in case of a downfall 4500 and 4200 will act as strong support. Strong CALL writing is seen at 4700 strike price which will act as resistance going forward. Nifty O.I. PCR is at 1.25, Which is indicative of good hedge position in the market.

The Trendline support for the Nifty is at 3965.

For the week ahead, the Resistance is at 4649-4719-4803. Support is at 4448-4305-4155.

INDEX LEVELS:

 S3S2S1CLOSER1R2R3
Nifty4155430544484587464947194803
Sensex14002142661467715103153321557916045

LAST WEEK’S RECOMMENDATIONS.

STOCK

Reco. Price

Tgt

Reached

LOT

PROFIT

Buy Aban

904

1000

1278

400

1,49,600

Buy RiiL

1120

1248

1286

800

1,32,800

Buy Fintech

1444

1548

1575

600

78,600

Buy Chennai petro

187

207

211

3600

86,400

Buy LIC Hsg.

527

551

557

1700

51,000

Buy Cairn

231

250

274

2500

1,07,500

TOTAL

Rs.6,05,900

THIS WEEK’S RECOMMENDATIONS:

STOCKCMPSLTgt-1Tgt-2
Buy BEL1393136115041545
Buy BeML909841965998
Buy ABAN1242119513021349
Buy Chennai Petro204192218226
Buy Jet Airways354339370389
Buy Bhushan Steel838806893915

WATCH OUT FOR:

1.   Buy BEL 1393 SL 1361 TGT 1504 – 1545 – 1650. 

BEL 06 06 2009
2.   Buy Bhusan Steel 838 SL 806 TGT 893 – 915 – 960.

BHUSAN STEEL 06 06 2009

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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