26 Sept 2011: Equity Buy/Sell (Technical View) IFCI research,

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Equity Buy/Sell (Technical View)

Ø  None of the scrips triggered buy levels. We will continue to look for key support levels to invest.

o   Cement sector has continued to fare well. If and when they react, one can look for investment opportunities in ACC near 1000 and 920 and Ambuja Cement around 120.

o   Chambal Fert. near 96, 90 and Hindalco near 128 and 107 can be considered.

o   Cipla > 288 ; Parsvnath > 67/50 are also good.

COMMODITIES:

Ø  We had already warned investors ( on 23/09) about huge volatility. Both silver and gold breached their support levels also.We would like to give clarity with reference to precious metals.

Ø  Gold and silver : The long term outlook on gold and silver is bullish. However, the move up will not be a one way street and will be interrupted by steep corrections. We had earlier mentioned that one can expect a 15-20% correction after the current bull run. The target in the longer term ( 1-2 years) could be upwards of 40,000 for gold and 80,000-1,00,000 in silver.

Ø  Medium term/short term : Volatility will be a factor to be reckoned with. The support in the short term for gold is around 25,500 and 22,900. Gold bounced up from 25,965. So far as 25,500 is not violated there could be a move up. Investors should wait for a clear signal for accumulation which should emerge in the next 5-6 sessions.

Ø  Silver has support around 49,500. Though there could be short term upmoves, we have to wait for a definitive signal.

Have strict stop losses