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Is NIFTY looking for 6000+…?
Most probably.., we expect the NIFTY to be anywhere between 5950 and 6020 in near term. Technically speaking, after
six weeks range bound trading session, NIFTY firmly placed above the key resistance level of 5750 on 07th November
2012 due to strong buying support from index heavyweight stocks. On the weekly chart, the NIFTY has been forming
‘rounding bottom reversal pattern’ or ‘V shaped recovery’ since second week of February 2012 which is a bullish
continuation pattern. This indicates there are more buying than selling in the market. If NIFTY breaks/closes above 5750
levels on weekly basis, the rounding bottom reversal pattern indicating that fresh buy signal and highly optimistic short
term target of 5870/5950 levels on the upside. More over the upward trend line on weekly chart is indicating that NIFTY
is likely to test 6020 levels in short term to medium term scenario. On the downside, the ceiling of the upward price
channel formed on weekly chart at 5630/5580 and this will act as a strong short term support and move below this level
is needed before traders can initiate fresh short positions. If 5580 support level is broken we will advise to exit all long
positions.
BAJAJAUTO
Technical View
The stock gave a breakout from the ‘rounding bottom reversal pattern’ on weekly chart which is a bullish
continuation pattern. Moreover, the stock has given a break out from the upper range of 1843/1850 on last Friday with
steady volumes. This suggests that, Baja Auto is well prepared for an up move and it can move towards 1980/2070 levels
in near term. The stock has been moving in an upward slopping channel since January 2011 on the weekly chart and
stabilized above its short term 20 days & 50 days EMAs on the daily chart indicates the stock is likely to remain positive
trend in short term. Based on observation of positive crossover in RSI on the weekly chart, the stock is likely to continue
its uptrend in the short term. One is advised to note that, the stock has been trading well above its long term 200 weekly
EMA since April 2009. This indicates the long term trend on BAJAJAUTO is likely to remain positive. However, Bajaj Auto
has got the support level of 1810/1758 on the downside.
ICICIBANKTechnical View
The stock has given a bullish breakout from the level of 998 on second week of September 2012 on weekly
chart. After given a bullish break out on the weekly chart, the stock has been consolidating in a narrow range between
1030 and 1100 levels with good volumes. One is advised to note that the stock has been trading above its all short,
medium and long term moving averages over the past eight weeks trading sessions. This indicates the stock may
continue to trade its rising upward trend and if the stock breaks/closes above 1100 on weekly basis, the rising upward
trend line in the near term which gives an immediate target of 1140 and 1170. Above 1170 levels we could see the
stock testing 1202 levels. However, on the downside, 1030 is acting a strong short term support for ICICIBANK.
Breakout of 1030 levels would change our bullish view and then 998 are possible
RAYMOND
Technical View
RAYMOND eventually approved the bullish breakout from the downward price channel on the weekly chart as new
buying comes in. This suggesting the stock is projected the medium term target of 424/440 levels. After testing the
high of 440 on April 2012, the stock has tested the upward trend line low of 327 on monthly chart. In this context, the
lower level buying helped to break the downward price channel levels of 394/398 which is favorable signal for short to
medium term buyers and this suggest the stock can extend the rally towards 458 levels. The 14 day RSI on daily chart is
indicating that buy signal. The bullish support line continues to remain intact on the weekly chart which suggests buying
pressure in the stock during dips. However, 394/380 is the short to medium term key support level for RAYMOND.
JUBLFOOD
Technical View
The stock has been trading in upward sloping channel since Oct 2011 on the weekly chart suggesting that buyers are
accumulating the stock at lower levels. Recently, after testing the low of 1232, the stock witnessed buying pressure at
bottom level with huge volumes. The candlestick pattern on JUBLFOOD is suggesting that buyers are accumulating the
stock at lower levels. The weekly STOCHASTIC is indicating that the prices are set to rally from the current levels in short
term. The long term trend on JUBLFOOD is likely to remain uptrend as the stock has been trading above its respective
long term 200 day WEMA (731) since March 2010. We expect positive trend in the counter to continue with immediate
resistance placed at 1410 and 1470 levels. If it sustains this pressure, buyers would take the stock at 1540 levels in
medium term scenario. On the lower side, the support will be at 1260 and 1232 levels.
BIOCON
Technical View
After testing an all time high of 472, the stock has been trading within downward pricing channel since October 2012.
However, the stock has just given an upside breakout from downward pricing channel recently which is indicating
bullish signal. The technical oscillator, Stochastic also continue to remain in the positive zone indicating that the
buying pressure can be witnessed on every dips. The short term trend on BIOCON is likely to remain strong and
breakout of 301 levels would indicate that buyers may be strengthening its bullish trend and then we could see the
medium term resistance level of 332/340. On the downside, the downward price channel line on BIOCON is suggesting
that the stock has support at 279/272 levels. If it sustains this pressure the stock could test its medium term support
level of 261. In terms of long term perspective, the stock had just started to trade above its 200 day long term WEMA
(279) which is a bullish signal for long term. Moreover, breakout of 332/340 levels could see strong momentum on
monthly chart and then 392/427 are possible.
Is NIFTY looking for 6000+…?
Most probably.., we expect the NIFTY to be anywhere between 5950 and 6020 in near term. Technically speaking, after
six weeks range bound trading session, NIFTY firmly placed above the key resistance level of 5750 on 07th November
2012 due to strong buying support from index heavyweight stocks. On the weekly chart, the NIFTY has been forming
‘rounding bottom reversal pattern’ or ‘V shaped recovery’ since second week of February 2012 which is a bullish
continuation pattern. This indicates there are more buying than selling in the market. If NIFTY breaks/closes above 5750
levels on weekly basis, the rounding bottom reversal pattern indicating that fresh buy signal and highly optimistic short
term target of 5870/5950 levels on the upside. More over the upward trend line on weekly chart is indicating that NIFTY
is likely to test 6020 levels in short term to medium term scenario. On the downside, the ceiling of the upward price
channel formed on weekly chart at 5630/5580 and this will act as a strong short term support and move below this level
is needed before traders can initiate fresh short positions. If 5580 support level is broken we will advise to exit all long
positions.
BAJAJAUTO
Technical View
The stock gave a breakout from the ‘rounding bottom reversal pattern’ on weekly chart which is a bullish
continuation pattern. Moreover, the stock has given a break out from the upper range of 1843/1850 on last Friday with
steady volumes. This suggests that, Baja Auto is well prepared for an up move and it can move towards 1980/2070 levels
in near term. The stock has been moving in an upward slopping channel since January 2011 on the weekly chart and
stabilized above its short term 20 days & 50 days EMAs on the daily chart indicates the stock is likely to remain positive
trend in short term. Based on observation of positive crossover in RSI on the weekly chart, the stock is likely to continue
its uptrend in the short term. One is advised to note that, the stock has been trading well above its long term 200 weekly
EMA since April 2009. This indicates the long term trend on BAJAJAUTO is likely to remain positive. However, Bajaj Auto
has got the support level of 1810/1758 on the downside.
ICICIBANKTechnical View
The stock has given a bullish breakout from the level of 998 on second week of September 2012 on weekly
chart. After given a bullish break out on the weekly chart, the stock has been consolidating in a narrow range between
1030 and 1100 levels with good volumes. One is advised to note that the stock has been trading above its all short,
medium and long term moving averages over the past eight weeks trading sessions. This indicates the stock may
continue to trade its rising upward trend and if the stock breaks/closes above 1100 on weekly basis, the rising upward
trend line in the near term which gives an immediate target of 1140 and 1170. Above 1170 levels we could see the
stock testing 1202 levels. However, on the downside, 1030 is acting a strong short term support for ICICIBANK.
Breakout of 1030 levels would change our bullish view and then 998 are possible
RAYMOND
Technical View
RAYMOND eventually approved the bullish breakout from the downward price channel on the weekly chart as new
buying comes in. This suggesting the stock is projected the medium term target of 424/440 levels. After testing the
high of 440 on April 2012, the stock has tested the upward trend line low of 327 on monthly chart. In this context, the
lower level buying helped to break the downward price channel levels of 394/398 which is favorable signal for short to
medium term buyers and this suggest the stock can extend the rally towards 458 levels. The 14 day RSI on daily chart is
indicating that buy signal. The bullish support line continues to remain intact on the weekly chart which suggests buying
pressure in the stock during dips. However, 394/380 is the short to medium term key support level for RAYMOND.
JUBLFOOD
Technical View
The stock has been trading in upward sloping channel since Oct 2011 on the weekly chart suggesting that buyers are
accumulating the stock at lower levels. Recently, after testing the low of 1232, the stock witnessed buying pressure at
bottom level with huge volumes. The candlestick pattern on JUBLFOOD is suggesting that buyers are accumulating the
stock at lower levels. The weekly STOCHASTIC is indicating that the prices are set to rally from the current levels in short
term. The long term trend on JUBLFOOD is likely to remain uptrend as the stock has been trading above its respective
long term 200 day WEMA (731) since March 2010. We expect positive trend in the counter to continue with immediate
resistance placed at 1410 and 1470 levels. If it sustains this pressure, buyers would take the stock at 1540 levels in
medium term scenario. On the lower side, the support will be at 1260 and 1232 levels.
BIOCON
Technical View
After testing an all time high of 472, the stock has been trading within downward pricing channel since October 2012.
However, the stock has just given an upside breakout from downward pricing channel recently which is indicating
bullish signal. The technical oscillator, Stochastic also continue to remain in the positive zone indicating that the
buying pressure can be witnessed on every dips. The short term trend on BIOCON is likely to remain strong and
breakout of 301 levels would indicate that buyers may be strengthening its bullish trend and then we could see the
medium term resistance level of 332/340. On the downside, the downward price channel line on BIOCON is suggesting
that the stock has support at 279/272 levels. If it sustains this pressure the stock could test its medium term support
level of 261. In terms of long term perspective, the stock had just started to trade above its 200 day long term WEMA
(279) which is a bullish signal for long term. Moreover, breakout of 332/340 levels could see strong momentum on
monthly chart and then 392/427 are possible.
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