First Morning Technical Call 2nd April 2013

MARKET OUTLOOK

 

Nifty (5704): S&P CNX Nifty closed positive on 1^st day of new financial year, and last 3days have been positive with beaten down sectors and stock rallying. BSE-REALTY +5.3%, BSE Small Cap +2.3% and BSE Mid-cap +1.28% on news flow, short covering and selective value buying DLF, SHOBA, HDIL, GODREJPROP and UNITECH up 6-8% and IBREALST likely play catch-up. Today Nifty has to cross 5725 failing which selling pressure till 5660 is possible. Weakness could begin in the Nifty only below 5660 where a fresh correction could start otherwise rally till 5788 & 5831 can be possible. Eight core industries shrank 2.5 per cent in February, a worst ever performance in decades, which is likely to result in muted overall factory output numbers. The India Meteorological Department will issue its first forecast of 2013 southwest monsoon in this month. India's manufacturing growth dropped to its slowest in 16 months, according to HSBC Purchasing Managers' Index, which reported a figure of 52 in March. NATCOPHARMA Rs.452 has Gapped-up (Rs.431-435) giving a break-out in daily & weekly chart and looks very good to target Rs.530 on higher side.

SENSEX (18865): Sensex closed positive on Monday, the first trading session of the financial year 2013-2014. Sensex for the day has to cross 18960 and sustain 18900in order to make a possible up move towards 19000-19050 in the days to come. On the other hand, Sensex could witness selling pressure if the index fails to hold onto current levels are not held. On the down side the Sensex slipping below 18700 could open up chances of lower levels like 18600-18550, being revisited.

 TECHNICAL CALLS 

BUY MRF Rs.12074: MRF has been making higher lows for the last 3 trading sessions after bottoming out at around 11350 levels. The stock is trading above its 200 DMA level from where it has taken good support and has made a bullish bat harmonic pattern on daily charts which suggests strength and a possible up move towards   12400-12450 cannot be ruled out. The stock can be bought on dips for higher levels.

BUY BAJAJCORP Rs.232: BAJAJCORP has given a triangle break-out after very long consolidation almost 53 trading days after making all time high of Rs.263.75. Stock looks very good to cross all time and target Rs.283 on higher side. Stock trades above all major averages 200DMA Rs.192, 100DMA Rs.226 and 50DMA Rs.230.

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