Market Outlook:
S&P CNX Nifty has broken down from Rising WEDGE with a Gap-down (5046-4985) which becomes important resistance for any rally. Nifty has made low in 8trading days and closed below 20DMA 4987, any rally will face resistance around 5000-5050 and it can be a opportunity to reduce position, below 4910 Nifty correction till 4800 & 4720 becomes possible. IIP data which can around 21months lowest level around 3.3%, weak Rupee which is 47.22 and rising Dollar Index are weakness in Indian market as Strong Dollar Index would force FIIs to move out of emerging markets. BANKNIFTY has Gapped-down (9647-9347) which indicate major weakness and levels below 8917 and 8500 can become a possibility. SBIN, AXISBANK, CANBANK, ICICIBANK, IDBI, FEDERALBANK are few banks which has Gapped-down and Caution is advised as 8-10% downside can be possible.
§ Sensex- after making double Top 17200 has Gapped-down (16830-16668), which has strong reversal as it comes near gap-up levels. Now if the Gap sustains then chances of Sensex moving below previous low of 15765 is very high. Sensex 200Simple weekly average 16068 below close market correction would be fastest and 14,000 levels is not ruled out. Sensex which was trading above 20DMA 16614 for 6trading days has now closed below that. Sensex failing to cross 16700 would be more negative today as on downside 16400 support has been breached.
Technical Calls:
BERGERPAINT-108, Stock on Weekly charts has been forming a triangle for last 12months and now stock has broken away from a triangle formation on higher volumes. Stock looks very good to target Rs.123 which is all time high and move higher from these levels. Stock traders above all major moving averages with 20DMA Rs.101, 100DMA Rs.100 and 200DMA Rs.95.
ABGSHIPYARD-382, Stock has made inverse Head & Shoulder formation stock above Rs.390 can target Rs.430-445 as target for the said formation. Stock trades above all major moving averages with 200DMA Rs.372, 100DMA Rs.370 and 20DMA Rs.363. Stock has shown out performance in last 6months where Nifty has corrected 16% this stock has gained 3% with 19% outperformance this stock looks very attractive for long term investor also.
Technical View: Power Stock- NTPC-TATAPOWER-ADANIPOWER-RPOWER
NTPC-TATAPOWER-ADANIPOWER-RPOWER all thermal power producer saw selling pressure with NTPC making 33Months low, TATAPOWER 28Months low and closed below Rs.1000. The Appellate Tribunal for Electricity's (APTEL) verdict on ADANI POWER, imply no hike in Power tariff and cost of higher coal prices added to that non-availability of coal Impacts these stocks, while NHPC, PTC and POWERGRID are safer bets now. NTPC can target Rs.130 & TATAPOWER Rs.830 on downside as per our technical view.
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