TECHNICAL RESEARCH REPORT
Market View & Outlook:
Buying at lower levels from the Institution in heavyweights, huge short covering and positive global cues helped Indian markets to regain yesterday’s loss of 491 points. The Sensex surged 507 points to close at 15,912 after remaining higher for the entire session. The Nifty gained 147 points to end at 4,710. All the sectoral indices ended in the green. Today’s rally was led by oil & gas, realty, metal and IT stocks. The market breadth was positive but the volumes remained lower.
The indices witnessed huge short covering and buying interest from the institutional players as the major index pivotal like Reliance Ind, SBI, Tata Steel, ICICI Bank and Hindalco closed with hefty gains.
The trend looks very nervous as this rally was mainly led by short covering as markets were extremely in the oversold zone. Now going forward its very necessary that nifty maintains above 4,740‐4,770 for further positive development. We believe that there is still lot of shorts uncovered which will trigger once nifty holds above 4,785. If nifty manages to trade above 4,785 then the next level could be 4,860 where this bounce back can end.
For tomorrow major support for the nifty is at 4,675 / 4,640, if this point breaks then only witness sell‐off happening otherwise use any dip as a buying opportunity for short term.
Major trend reversal: Only below 4,535 and above 4,860.
Important Support Levels:
Index
Close
Support
Resistance
SENSEX
15,912
15745‐15580‐15330
16010‐16110‐16280‐16400
NIFTY
4,711
4660‐4610‐4535
4740‐4770‐4820‐4860
Stock Idea:
1) INFOSYS (2236) – Buy on dip and hold with a stop‐loss of 2150, if the stock maintains above 2285 which is a trend line breakout, then look for a short target of 2350‐2420.
2) HCC (128) – Buy and hold with a stop‐loss of 122, stock is consolidating in the range of 119‐131, if we see a move above 131 with an average volume of 30 lac shares, then look for a target of 150.
3) IVRCL (357) – Buy and hold with a stop‐loss of 344/335, stock is showing sign of revival, if maintains above 370 in the near term then look for a target of 405.
4) BANK NIFTY (8487) – Buy with a stop‐loss of 8330, major weakness only if trades below 8180, on the higher side if we see a stability above 8565, then look for a target of 8700.
5) ICICI BANK (828) – Buy and hold with a stop‐loss of 790, if the stock maintains above 840 in the near term then look for 870.
