Archives : FINALLY, 4700 BROKEN - 28/08/2009.

FINALLY, 4700 BROKEN – 28/08/2009. 

After a lot of consolidation, the Nifty has finally managed a weekly close above 4700. The market was moving in a trading range since June 2009. After 3 months and numerous failed attempts to cross the resistance zone 4693-4731, finally the Nifty has managed to give a weekly close above this resistance zone. But before you start to celebrate the market has yet to clear the 61.8% retracement of the entire fall for both Sensex and Nifty. For Sensex that level is at 16045 and Nifty 4789. The direction is pointing upwards, but trust me the volatility will create doubts regarding the direction.

  • GOOD START TO THE NEW SERIES.
  • SENSEX.
  • NIFTY.
  • INDEX LEVELS:
  • LAST WEEKS RECOMMENDATIONS.
  • THIS WEEK’S RECOMMENDATIONS:
  • WATCH OUT FOR:
  • to read full full article click"more"



    FINALLY, 4700 BROKEN – 28/08/2009.

     

    After a lot of consolidation, the Nifty has finally managed a weekly close above 4700. The market was moving in a trading range since June 2009. After 3 months and numerous failed attempts to cross the resistance zone 4693-4731, finally the Nifty has managed to give a weekly close above this resistance zone. But before you start to celebrate the market has yet to clear the 61.8% retracement of the entire fall for both Sensex and Nifty. For Sensex that level is at 16045 and Nifty 4789. The direction is pointing upwards, but trust me the volatility will create doubts regarding the direction.

    • GOOD START TO THE NEW SERIES.

    The new September series has begun on a positive note as can be seen by the gains in both Sensex and Nifty. However, the Sensex is yet to give a close above 16002. The Nifty Futures saw a healthy rollover of 76% in the September series as compared to 67% observed during the last series. Good open interest accumulation is seen in 4600 Put and 4900 Call, which can be the short term trading range for the market.

    • SENSEX.

    The Sensex opened at 15362, made a high of 15957, made a low of 15362 and closed the week at 15922. The weekly gain was 682 points.

     

    Sensex opened with a gap up and maintained that as a low forming a White Marubuzo on the weekly charts. In the process the Sensex has managed to leave behind a bullish upward gap between 15284-15362 on the daily as well as weekly charts. This gap gains significance as it appears on the weekly charts as well and it will act as a support.

     

    The Sensex will now move forward to test the 61.8% retracement level of the entire fall from 21206-7697 which falls at 16045. Beyond this the next retracement level of 78.6% falls at 18315.

     

    The Sensex has given a Flag breakout and the target for this is 16659. Beyond this the target for the Sensex is 17320.

     

    The indicators are showing momentum. The MACD has given a Buy signal and is in the positive zone and moving upwards. The ROC too has given a Buy signal and even the RSI (62) is moving upward.

     

    There is a rising Trendline which is acting as a resistance for the Sensex and it falls at 16210. There is a strong Trendline support at 15372.

     

    For the week ahead Sensex will face resistance at 16045-16196-16452 and support will be at 15663-15362-15146. 

    • NIFTY.

    The Nifty opened at 4536, made a high of 4743, made a low of 4536 and closed the week at 4732. The weekly gain was 204 points.

     

    Nifty have formed Opening White Marubuzo on the weekly charts which will have bullish implications in the next week.

     

    The Nifty will now move forward to test the 61.8% retracement level of the entire fall from 6357-2252 which falls at 4789. Beyond this the next retracement level of 78.6% falls at 5478.

     

    The Nifty has given a Flag breakout and the target for this is 4885. Beyond this the target for the Nifty is 5077.

     

    The indicators are showing momentum. The MACD has given a Buy signal and is in the positive zone and moving upwards. The ROC too has given a Buy signal and even the RSI (62) is moving upward.

     

    Nifty formation is similar to an ascending triangle and the breakout will be witnessed if the Nifty manages a close above 4751. There is a strong Trendline support at 4496.

     

    The Nifty O.I.PCR is at 1.45. Strong PUT writing is been witnessed at 4600 strike price, which means 4600 will act as a strong support. 4900 strike is seeing lot of CALL writing and hence will act as resistance.

     For the week ahead, Nifty will face resistance at 4789-4885-4970 and support will be at 4645-4536-4448.

    • INDEX LEVELS:
     S3S2S1CLOSER1R2R3
    Nifty4448453646454732478948854970
    Sensex15146153621566315922160451619616452

    • LAST WEEKS RECOMMENDATIONS. 

    All the targets were achieved except BPCL. The stars of the week were Sintex which went up by 16% and CMC which jumped by an amazing 24%!!!

    STOCKReco. PriceTgtReachedLot SizeProfit
    Buy Balaji 6167665000Rs.25,000
    Buy Sintex2132362481400Rs.49,000
    Buy CMC8649611075300Rs.63,300
    Buy BPCL530544535550Rs.2,750
    Buy IVRCL 3453743761000Rs.31,000
        ProfitRs.1,71,050

    • THIS WEEK’S RECOMMENDATIONS:
    STOCKCMPSLTgt-1Tgt-2
    Buy Crompton322314336346
    Buy Unitech9996104111
    Buy JP Asso.230224236246
    Buy ICSA196192205214
    Buy CESC380373396404

     

    • WATCH OUT FOR:

     

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