MARKET OUTLOOK
NIFTY (5783): CNX Nifty made a stellar comeback last week towards 5800 levels and closed highest in 20 trading sessions, as the BULLISH WOLFE PATTERN, took full effect in the previous week. For the day, Nifty has to cross 5830 and sustain 5780 on the down side to carry the positivity into this week as well. Nifty successfully holding 5780 on the down side for the week can target 5900-5920 levels. On the flip side if the index doesn't cross 5830 on the upside then chances of a steep correction could become high as a major conventional bearish head and shoulder can be formed if the resistance at around 5830-5850 is not crossed. Today parliament ses sion begins to complete the remaining budget session where expectation is very high as FM has been travelling abroad to assure more reforms to investors from abroad. Today we have results of CAIRN & ULTRACEMCO while tomorrow results of HDFCBANK and COROMANDELINTL will be out . WIPRO has disappointed the street with its results and all 4 IT Stocks look weak enough to correct ahead of derivatives settlement as INFY alone has lost 21% in this settlement. On the other hand, RCOM has gained 55% this month alone and expect huge short covering in the stock going forward.
SENSEX (19016): Sensex closed stunningly higher for the week as slump in prices of the yellow metal and crude pushed the investors towards the equity segment. For the day, Sensex has to sustain 18900 on the downside and target 19180-19200 on the upside which could negate the formation of the right shoulder of the bearish head and shoulder pattern on daily charts. Failing to cross the mentioned upside levels, could open up possibilities of the index drifting lower towards 18600 again.
TECHNICAL CALLS
BUY EIDPARRY Rs. 159: EIDPARRY has made broad unconventional Inverted Head & Shoulder on daily charts and above Rs.161, a target of Rs.180 becomes possible in the stock. EIDPARRY has corrected from high of Rs.256 to low of Rs.133 in 20weeks and now its 38.2% retracement Rs.180 & 50% 195 becomes possible soon.
BUY RALLIS Rs.126: RALLIS has made Rounding bottom formation and has given a break-out above sloping down trendline and now stock looks very good to target 145-150 levels on higher side. RALLIS is trading above 50DMA Rs.136 and also above its 20 DMA at 119.10 but, below 200DMA Rs.136 & 100DMA Rs.134.
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