Techcheck Daily Nifty; risk rewards still favour longs : Emkay

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Techcheck Daily

Nifty; risk rewards still favour longs

n     Chart of the Day: Nifty, Fridays session undoes a few short term positives, yet the prices continue to trade close to previous swing highs  at 5310 and 5399. The 61.8% retracement to the rise of 4786-6338 stands at 5379 and should offer support. Risk rewards continue to favour longs

n     Bank Nifty, continues to trade near supports, expect a pullback till 11000-11200 if not more, SBI and ICICI remain top picks

n     LIFFE Sugar looks very vulnerable, expect another 20-25% correction from current prices, expect negative rub of on sugar stocks

n     Crude chart too looks similar to sugar (from Sep 2010 onwards), view negative as long as prices don’t close above 93 for a couple of sessions

n     DXY breaks below 77.7, short term picture turns negative even though medium term bullish patterns still intact, expect 75 levels to get retested

n     Stocks with positive short term view

n     DLF, Praj Ind, Reliance (stop 864), Allahabad Bank, Coromandel, HCL Tech, Bank Nifty (stop 10369), SBI, ICICI

n     Stocks with negative short term view