Edelweiss Technical Reflection (ETR) - March 14, 2011

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Edelweiss Technical Reflection (ETR)

§  The index declined by ~1% in Friday’s session spooked by the Earthquake and Tsunami in Japan. However it has managed to hold above 5400 on a closing basis which will keep the bulls in the hunt. Momentum oscillators on the hourly and daily chart have rolled bearish leading to near-term weakness. Technically Nifty is now consolidating within a triangle pattern and will continue to do so for few more sessions. Market breadth continued to be in favour of declining stocks for the second session. Nifty 50 stocks A/D ratio slipped sharply at 1:4. Nifty has been consolidating within a broader declining trend for the past three weeks and only on a break of the trading range of 5650-5400 will the index return to trending mode. We reiterate to wait out the near-term consolidation before a strong breakout is achieved.

§  Barring the Oil & Gas and FMCG index, all other sectoral indices slipped in red. Metals and Technology shares declined by >1.5% closely followed by Power and Cap Goods stocks. BSE Realty index has made a higher high for the second consecutive week signaling a short-term uptrend for a target of 2200-2250. Bullish Setups: Petronet (PLNG), SAIL, IB Real Estate (IBREL), Tata Global (TGBL) Bearish Setups: Sterlite (STER), HUL (HUVR), Jindal Steel (JSP)

§  Global equities have declined for the week ended as global risk aversion owing to various events kicks in. DXY has made a bullish outside bar for the week after three consecutive weekly losses adding to the near-term upside risk. Silver (SLV) has made a ‘spinning top’ candlestick pattern on the weekly chart signaling indecision with a potential to decline in the coming days.