First Morning Technical Call 14th May 2013

MARKET OUTLOOK

NIFTY (5980): CNX Nifty almost made a double top with 6111.80 on 29^th January ,2013 and 6114.55 on 11^th May,2013, Nifty has rallied substantially from 5477.20 to 6114.55 in 21 trading days which is important Turn date where profit booking was seen. Nifty's rally from 5477.20 to 6114.55 has already has retraced 23.6% and now 38.2% comes to 5871 and 50% comes to 5795. For the day Nifty holding 5960 and crossing 6040 to target 6080 & 6111, while Nifty below 5960 could have chances of correcting till 5871-5844 ,which cannot be ruled out. Multiple factors aide d market correction, Market talks of PM stepping down, weak trade data, Fed's exit strategy has been associated with market weakness and RBI probe into COBRA post expose, Banks suppressing alerts on suspect dealings. Exports from India up 1.6% even as trade deficit widens to USD 17.7 bn, Gold and silver imports during the month under review has increased by a staggering 138 per cent to USD 7.5 billion from USD 3.1 billion in April 2012.

SENSEX (19692): Sensex corrected 430 Points almost highest ever single day correction in last 14 months and in the process closing the gap of 19694 caused on 7^th May by making a low of 19667. Sensex rallied from 18144 to 20146 in 18 trading days for which 38.2% retracement comes to 19381 & 50% comes 19145. For the day Sensex has to cross 19840 to negate the corrective move, while below 19660 the index could witness support around 19550 & 19380 levels.

TECHNICAL CALLS

BUY CADILA Rs.805: CADILAHC has closed at its  63 trading days high after making good bottom formation, on weekly making a U-pattern which would complete near Rs.870. The company announces its result on 22^nd May,2013 and hopes are very high on good turn around results. The stock is trading above 50DMA Rs.757 and 100DMA Rs.801.

SELL CANBANK Rs.406: CANBANK is on the process of completing a Head & Shoulder pattern, below Rs.396 the stock would break the neckline, therefore expect a correction of 8-10% from current levels in the stock. CANBANK has closed below 200DMA Rs.422, 100DMA Rs.444 and 50DMA Rs.408.

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