First Morning Technical Call

Market Outlook:

S&P CNX Nifty has closed negative after 3days of rally making lower high and lower low and now we should see if that pattern continue. Nifty high 5030 & low 4964 so if nifty fails to cross 5035 and falls below 4960 then it confirms end of rally and start of downtrend and below 4920 correction in days to come would be faster. Nifty 200WMA 4823 is very crucial support and if we break and close below that Indian market could see fastest correction in shortest time period as in last 9months correction has been slow to erode wealth. Market to show any major strength should cross the 5150 levels on closing basis for 2-3days for short term rally. IT stock seeing selling pressure due to multiple factor as PMI service data, 49% drop in Indian IT hiring and U.S and Euro trouble could make INFY, WIPRO, TCS and HCL-TECH correct more.

 

 

§  Sensex- has failed to cross 17k levels and now below 16440 which is 4days low would confirm bear rally has ended, Bear market rallies are fast, swift and takes everyone by surprise before they fizzle out timing is a big problem in such cases but confirmation would come once it fails to hold certain important support levels.

 

Technical Calls:

 GSFC-Cmp Rs.404 has closed @ all time highest level, now the stock looks very good to cross all time high Rs.412.9. Stock is making V-shape pattern and any move above Rs.413 on sustainable basis the stock can give 10-15% return in next few months. On long term basis we have a target of Rs.590 which becomes a possibility if we close above Rs.415 in days to come.

 

 

IRB-159, Stock has started to make higher low and now higher high could be above Rs.170 levels. Stock has strongly closed above 20DMA Rs.154 now 100DMA Rs.169 & 200DMA Rs.187 can be possible levels to watch for the upside.

 

 

  Technical View: :  BHEL- Break-down

BHEL-1711 has formed a negative triangle pattern which is very negative and stock looks very weak on charts trading below all major averages. Stock has strong support around Rs.1660 breaking which Rs.1570 which becomes 29months low would be a support; stock is falling in a falling channel where support comes to Rs.1550 around levels.