Nifty Explodes Upwards

NSE Nifty:

The NSE Nifty has moved exactly along the expected lines. It has bounced back after taking support at the 5182-5224 level to also take out the 5410 level with consummate ease. It has launched into a short-term uptrend, which is probably now converting into a medium-term uptrend. Needless to say, the outlook has now turned bullish and would continue to remain so as long as the sanctity of the 5410 level is maintained. Both, the quantum and speed of the rise is a bit faster and higher than expected, indicating the need to observe some near-term caution at the higher levels. A minor cool off cannot be ruled out, but this doesn’t take anything away from the fact that the Nifty is on an absolutely sound technical footing this time around.

The Mid- and Small-Caps have taken baby steps to positivity, and further progress seems like a distinct possibility. Banks have virtually exploded and would continue to do so. Capital Goods seem to be in recovery mode and Consumer Durables seem to be finally improving. FMCG and Healthcare have posted fresh all-time highs, and IT has shown a lot of strength in a good market. Metals have staged a delayed recovery and Realty too has woken up from its somnolent state.

The Nifty has staged a scintillatingup-move, which seems to suggest a lot of space for further improvement (with corrections of course), making it a ‘buy on declines’ market.

[PAGE BREAK]

Gujarat Fluorochemicals
CMP - Rs 374.80 | Buy

Gujarat Fluorochemicals bottomed out by posting an intra-week low of Rs 140.05 during the week ended 28th May, 2010, and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of Rs 391 during the week ended 8th April, 2011. It couldn’t sustain these levels for long, and declined to post an intra-week low of Rs 316 during the week ended 24th June, 2011. The scrip commenced its uptrend from here, and rallied to peak at an intra-week high of Rs 560.45 during the week ended 23rd September, 2011.

Currently, Gujarat Fluorochemicals seems set to stage an upmove after a decent weekly consolidation. With even the daily picture looking better, a further upside from these levels cannot be ruled out.

Trading Pointers:
Indicators: MACD-Buy | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 369, 343 | Resistance: 388, 408
Targets: 1st Target: 405 (4-6 weeks) | 2nd Target: 420 (12-14 weeks)   
BSE Code – 500173| Stoploss: 360 (cls)
55 Week EMA: 406.84

[PAGE BREAK]

Bank of India
CMP - Rs 269.85 | Buy

Bank of India peaked at an intra-week high of Rs 278 during the week ended 29th April, 2009, and declined to post an intra-week low of Rs 226.30 during the week ended 8th May, 2009. The scrip launched into an intermediate uptrend, peaked at an intra-week high of Rs 474.70 during the week ended 17th October, 2009, only to enter a corrective phase, and declined to post an intra-week low of Rs 310.15 during the week ended 21st May, 2010. The scrip staged a rally to peak at an intra-week high of Rs 588 during the week ended 8th October, 2010, and entered a corrective phase.

Currently, Bank of India has reversed its direction after receiving significant support from the Rs 250 level. A weekly close above the Rs 280 level would mean the possibility of a further upside from here.

Trading Pointers:
Indicators: MACD-Sell | RMI-Sell | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 260, 249 | Resistance: 281, 304
Targets: 1st Target: 310 (4-6 weeks) | 2nd Target: 330 (12-14 weeks)
BSE Code – 532149 | Stoploss: 250 (cls)
55 Week EMA: 332.52

[PAGE BREAK]

L&T
CMP - Rs 1486.95 | Buy

Larsen & Toubro bottomed out by posting an intra-week low of Rs 557 during the week ended 13th March, 2009. It commenced a short-term uptrend, and rallied to peak at an intra-week high of Rs 1800 during the week ended 12th June, 2009. The scrip entered a corrective phase to actually bottom out by posting an intra-week low of Rs 1371 during the week ended 6th February, 2010. Larsen & Toubro moved sideways before recovering to peak at an intra-week high of Rs 2212 during the week ended 5th November, 2010, only to decline from here.

Currently, the scrip seems to be on the verge of commencing a higher top, higher bottom formation on the daily charts, indicating the possibility of a further upside from these levels.

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Buy | RSI-Buy
Support: 1458, 1422 | Resistance: 1602, 1647
Targets: 1st Target: 1607 (4-6 weeks) | 2nd Target: 1672 (12-14 weeks)
BSE Code – 500510 | Stoploss: 1427 (cls)
55 Week EMA: 1379.35

[PAGE BREAK]

Voltas
CMP - Rs 116 | Buy

Voltas bottomed out by posting an intra-week low of Rs 53.90 during the week ended 24th April, 2009, took support at the Rs 54 (support) level, recovered smartly, and peaked by posting an intra-week high of Rs 145.80 during the week ended 12th June, 2009. The scrip declined from here, struggled a bit, and finally overcame its recently-posted high. It entered a medium-term uptrend, appreciated to peak at an intra-week high of Rs 262.50 during the week ended 12th November, 2010, and entered a corrective phase.

Currently, Voltas could be commencing its short-term uptrend. With the oscillators looking positive, a further upside from these levels cannot be ruled out.

Trading Pointers:
Indicators: MACD-Buy | RMI-Buy | Stochastic-Buy | ROC-Sell | RSI-Buy
Support: 111, 103 | Resistance: 123, 132
Targets: 1st Target: 126 (4-6 weeks) | 2nd Target: 131 (12-14 weeks)   
BSE Code – 500575 | Stoploss: 111 (cls)
55 Week EMA: 115.02