After last week's consolidation, Nifty broke it's short-term moving averages at the start of this week and saw a big sell-off subsequently. At the bottom of week, the benchmark was down 6.2% but thanks to Friday's rebound, the losses were reduced to 4%. Still, this is the biggest weekly fall in 4-1/2 months. Nifty mid-cap index fell 5.2% while small-cap index was down 5.6%. All the NSE sectoral indices ended in red with Media and Metal indices leading the losses, down 9% and 8% respectively.
Coming back to Nifty, 10790, the low made during the week, roughly coincided with it's 200-day simple moving average. Hence 10790 would be the important support to eye going forward. If Nifty sustains below 10790, next meaningful support will come at 10400, where 34-week moving average is placed. On the way up, 11225, where an upward sloping trendline adjoining bottoms made on 14th August and 9th September is placed, would be the immediate resistance to eye. Above 11225, 11500, where a downward sloping trendline adjoining tops made on 31st August and 16th September is placed, would be the next hurdle to eye.
Banknifty fell 4.8% this week, extending the losing streak to fourth straight week and closing at 15-week low. 20405, the botoom made during the week, is the immediate suppor, upon breach of which 19700, where a trendline adjoining bottoms made in March and May is placed, would be the major support to eye. On the way up, 21400 is the immediate hurdle, upon crossover of which, 21850 would be next target to eye.
GARWARE TECHNICAL FIBRES (CMP: 1980): The stock has been consolidating in a narrow range for last one and a half month. A crossover of Friday's high, 2030, would confirm a breakout from this consolidation phase and would pave the way for fresh upmove. The stock should be bought above 2030 for the target of 2320. The stop-loss should be placed at 1886.
COFORGE (CMP:2304): The stock has been a big outperformer and hit it's all-time high on Friday. The stock also broke out of a trendline resistance on it's hourly chart with volumes which were twice than 10-day average volume. The stock can be bought at current rate for the target of 2451. The stop-loss should be placed at 2190.
INDIAMART (CMP: 5254): This is another outperformer which hit record high on Friday. The stock also broke out of ascending triangle formation on its hourly chart with good volumes. The stock can be bought at current rate for the target of 6000. The stop-loss should be placed at 4863.
RK FORGE (CMP: 299): The stock, on Friday, broke out of a channel formation on its hourly chart with good volumes. The stock can be bought at current rate for the target of 335. The stop-loss should be placed at 280.
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