23 Dec 2011:: Edelweiss Technical Reflection (ETR) :Edelweiss,

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

Edelweiss Technical Reflection (ETR)

Indian equities ended ~0.85% higher in a volatile session leading to a close above the strong resistance of 4720. Nifty opened lower in line with the Asian peers where it consolidated above the 21 hourly EMA for the better part of the day before launching off to a rally in the closing hours. The rebound rally has managed to be a fairly strong one as it closes above 4720 (an earlier support, now resistance) indicating that it has further headroom before hitting the supply zone. Trading volumes in yesterday session were at average and the A/D ratio was balanced at 1.5:1. On the intraday charts the index is depicting near-term strength with the MACD moving above the zero line and price trading above the 21 and 50 hourly EMAs. We maintain our view of the index undergoing a pullback of the recent decline with the potential to test 4800 / 4810 (21 DEMA) where it is likely to fail and resume the southward journey. This risk to the view is if Nifty manages to breach and close above the said level on a daily/weekly basis, then it could signal a potentially bigger retracement and require a review. Until then traders are recommended to hold/build shorts for a target of 4500 / 4400 over the coming weeks.

 Barring the IT Index (-1.20%), all other sectoral indices ended the day in the green. The top performers of the day were Realty (+2.91%), Banking (+2.27%) and Power (+1.97%) shares. Broader market indices managed to trade in sync with their frontline peers and were up ~0.75% each.

Bullish Setups: DRRD, PIHC, AXSB, LT, SAIL

Bearish Setups: HCLT, LPC, RBXY, TTMT, AL