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Market
Outlook:
Nifty started the day on a weak note. But
immediately after making a low of 5936 in the initial trading hour
itself, there came a sharp bounce leading the index back to the
day’s high of 5978. However, once again the index failed to sustain
at higher levels resulting in a decline that continued till closing
bell. It made a low of 5927 before concluding at 5938.80 down 20.40
points. The advance/decline ratio was almost 1:2.
Nifty:
Though, today Nifty gave a close below the
support of 50 DMA and the medium term trendline, both intersecting
at 5952, it’s quite early to conclude that the bears have taken
over. The rational behind that is the possibility of a whipsaw - a
false break. The daily stochastic is well below the oversold
boundary and all set to start yet another bullish cycle. In this
event, today’s breakdown has high chances of resulting into a false
break. Hence, we will still wait for a decisive break before
throwing in the towel. The short term trend continues to remain
bullish as the series of higher highs and higher lows remain intact.
We maintain our upside targets of 6111 (high of January 29) and 6150
(prior high). On the downside, below 5952, 5919 (bullish gap of
January 1) is the next key support.
Support:
Major support level 5919.
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Investment
Ideas
- Tech
Mahindra @
Rs. 990
(Target Price: Rs. 1100)
Trading
Ideas
- Positive
bias - Sun Pharma (Target 770), JM Financial (Target 26), Tv18
(Target 38), Unitech (Target 45), Zee Ltd (Target 260) &
Anantraj (Target 90). Traders maintain stop loss
accordingly.
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