Nifty (6215) - Nifty corrected 2nd day in a row as Gap-down (6311-6304) still pending, while market breadth was positive in both exchange with IT, Power & Pharma stocks doing good while banking & Metals seeing profit booking. Today if Nifty crosses and trades above 6245 then 6285 & 6320 is possible below 6205 then 6156 & 6135 are levels on downside.
Nifty has been moving in a rising channel and exactly @ support and if the support holds then rally can be till 6530 in next 8-9trading days while below 6189 could be till even below 6079 which is low in last 13trading days.
Nifty sustains Golden Cross
Golden Cross when 50DMA cuts 200DMA from below and it happened on 1st November 2013 and normally if this sustains then rally can be 15-20%, 50DMA =5914 & 200DMA=5861.
News that impact;
The Cabinet Committee on Economic Affairs (CCEA) is likely to consider a proposal seeking changes in the foreign direct investment (FDI) policy for pharmaceutical and real estate sectors in its meeting on Thursday.---Pharma stock activity and Realty stocks can be in action
CADILA Rs.716- Stock has Gapped-up(Rs.690-691) and sustained the gap in last 3days which gives a good confirmation for a major upmove on cards stock looks very good to cross Rs.760 and target Rs.805 in next 1-2months.
Monthly chart of CADILA –points to target above Rs,1200 in next 2-3years and Stop for the same would be close below 620 which is almost double bottom in Monthly chart. Previously NATCO, SUNPHARMA, IPCALAB almost doubled from our levels while CADILA has been lagged but once the move starts this stock would surprise in my view.