22 November 2010

Edelweiss Technical Reflection (ETR) & Stocks in News: Nov 22, 2010

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 Stocks in News
§  Norwest in talks to buy 20% in TutorVista for Rs225 cr  (ET)
§  APL Apollo Tubes acquires Lloyds Line Pipes for 40 cr (ET)
§  IOC to buy 26% in NPCILs Kota N-plant for.900 cr (ET)
§  Mexicos Cemex set to buy Murli Cement for $550 m (ET)
§  Tilaknagar Industries takes QIP route to raise 135 cr (ET)
§  Kingfisher fined 1 cr for not providing facts during probe (ET)
§  Poscos 51k-cr Orissa steel plant runs into fresh trouble (ET)
§  Dr Reddy's gets nod to launch Zafirlukast in US (BS)
§  Lavasa wins case against London's The Times (BS)
§  L&T reported to be in talks to sell IT arm (DNA)
§  CBM delivery to start in 2 months: Essar Oil (DNA)
§  JPAssociate to revive naptha-based fertiliser unit of Duncans Industries Ltd in Kanpur (DNA)
§  JSW Energy looking to raise 2400cr through bond issue (DNA)
§  Rel PowerLanco shortlisted for solar-thermal modules (DNA)
§  Essar Shipping to invest Rs 5500cr (Mint)
§  Core Project to invest Rs  450cr to open schools (Mint)
Edelweiss Technical Reflection (ETR)
§  The index went into another tailspin after a positive day earlier as the selling was evident from the start of the session. Last hour saw the activity intensify as supports conceded and Nifty closed the week below 5900. It was the second consecutive weekly loss for the index as it has lost ~7% off the 6338 high. Momentum oscillators have turned bearish and the bearish strength has gained momentum. Market breadth turned back strongly in favour of declines. Nifty 50 stocks breadth was at 1:6. The index is now hanging onto the crucial six month trendline support of 5840, and since the oscillators are highly oversold on intraday charts with positive divergence, a substantial pullback towards 6000 is on the cards in the early part of the week. Key moving averages of 21 and 50 day EMAs will now act has hurdles on the way up.
§  The market downfall was brought in by the high beta Realty, Oil & Gas and Metals shares. CapGoods and FMCG stocks managed to outperform the market. RIL has closed below 1000, with a weekly loss of 6%. The stock is near the 975 multiple swing support from where a 2-3% pullback is expected. Bullish Setups: ITC, HNDL, TATA, CIPLA, UNSP, HH Bearish Setups: JSP, BHEL, IVRC, LICHF.
§  Western equity indices closed the week on marginal to good gains despite a choppy European and Asian trade indicating underline strength there. Shanghai Composite has re-tested the breakout level of 2900 in a deeper weekly loss. The medium term trend remains up as long as 2705 is not breached.
§  Interesting chart setupsTATA, LT, ITC, CIPLA, JSP, IVRC

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