STOCK MARKET INDEX REVIEW & OUTLOOK
The EQUITY MARKET NIFTY opened on a buoyant note taking cues from its global peers. The share market index shed some of its initial gains and registered an intraweek low of 4889 levels. Buying activity was intensified in the later part of the session which led the stock market index hold on to its intraweek gains. The stock market index finally closed at 4920levels, a loss of 29 points.
Share market index is trading in a congestion zone of 4952--4768 levels for last two weeks (as shown in the chart). Going forward Equity market NIFTY is likely to trade in this trading range until it breaks out either side of the aforementioned range. Trading above 4952 level share market index could head towards the psychological levels of 5000 followed by 5050--5075 levels.
On the downside share market index has immediate support near 4900. In the last week Stock market index has managed to bounce back from near to its 10 Jan 2012 ascending triangle breakout levels of 4780. Another point to be noted is that, 4768 is the 78.6% retracement level taken from the Dec. low to Feb. high. Hence closing below 4900, equity market NIFTY could find support in the range of 4780-4765 levels.
TOP TRADES TO WATCH OUT FOR:-
The share price of IDFC LTD. has been consolidating in a narrow range of RS110-RS122 for last few weeks. With Friday's movement the share price has registered a breakout from this range. This breakout suggest that the stock is likely to head towards the levels of RS132-RS135 in the near term. The stock is also trading above its long term moving average.
We recommend a buy at current level with a stop loss placed below RS120.80 for the above mentioned target. It has been noted that in the past few weeks, the stock price of
Jubilant Food works Limited has been trading with a positive bias amidst the declining market, thus indicating relative strength against the markets. Now, the stock price has given a breakout above its previous resistance on daily charts after a sideways consolidation which is a positive pattern for the stock price. Also, the momentum indicator has given a positive crossover and has started rising upwards indicating an up move in the prices.
We recommend traders to buy now and again on dips up to RS1205-RS1220, with a stop placed below RS1168 for the targets of RS 1300 / RS1360 / RS1400.
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