First Morning Technical Call_30082011

Market Outlook:

S&P CNX Nifty witnessed smart recovery on the first day of the week after a heavy sell off in last few days, now if it sustains the Double Top made in the last week around 4965 levels then pullback towards 5050 levels may be seen. Whereas if it fails to hold 4950 levels then again selling pressure may get intensified towards 4900-4860 levels. The rally was accompanied with lower volumes indicating lack of participation ahead of short week. Nifty started to fall from 5740 levels on 8^th July to 4720 levels and if we take the 24% retracement levels that comes to around 4970 levels hence it may act as immediate resistance for the market and sustaining above it may see further rally on upside. For strength to come in the market it has to close above 5100 levels for three to four trading sessions. Traders are advised to have cautious approach while trading and keep strict stop levels because in general downtrend of the market scenario pullbacks occurs at faster rate.

§ Sensex- Index closed near 16400 levels now next immediate resistance levels are around 16540 and sustaining above these levels may target 16800. Whereas on downside if it fails too hold 16400 levels then again selling pressure may get intensified towards 16000 levels. Sensex has not filled the gap made in last week around 16435 on closing basis.

§ Due to holdays coming in and lower participation, if market fails to hold 5000 levels then again profit booking may be seen in Banking-Metal space whereas some support base buying may continue in IT-Tech stocks.

Technical Calls:

UNIPHOS-Cmp Rs. 139.70

Stock has made base around 135-136 levels and bounced back from these levels with increasing volumes suggesting rally may continue in near term. Stock is looking attractive on charts and one can initiate long with stop below 136 levels and for the target of 145 levels.

ABGSHIP: CMP Rs.375

Stock has closed above the convergence of short term moving averages indicating strength in it. Counter is making Higher Highs and Higher Lows on daily charts. The Rally was accompanied by volumes; one can initiate long positions with stop below 367 and for the target of 383-385 levels.