17 March, 2010

 

The sideways mode was finally resolved in favor as RIL led the Nifty above 5200. RIL was up around 4% on good volumes and this kind of move has been witnessed after a long time. As mentioned in our previous newsletters also, it does look that RIL could be preparing for a big up move and perhaps that move might have just kicked in. RIL was well supported by other heavyweights like Tata Steel, Tata Motors, Infosys, L&T and Cairns. Market picked up strong momentum during the later part of the session as more and more stocks and sectors joined the bullish bandwagon. Prominent gainers apart from the heavyweights were Apollo Tyres, Idea, Educomp, Polaris, Triveni, IVRCL Infra, Ind Hotels, McLeod Russell and Ashok Leyland. Few that could not participate in the up trend were PFC, Yes Bank, Neyvelli, Bharti, ACC, Lupin and Dabur.

Nifty gave a clear breakout above 5150 and met its first target of 5220 within a span of 60-90 minutes. Nifty could head towards 5280-5300 in coming days and support now shifts upwards to 5135-5150. Steel stocks have gained momentum and more upside is likely in JSW Steel and Tata Steel. Idea is again attempting a breakout and could move to around 72-73 in coming days. Positive breakouts are also seen in Ind Hotels, Ashok Leyland, BPCL, Videocon (above 234) and GE Shipping.

LOW RISK / LOW RETURN

NOTE : IN CASES WHERE CASH LEVELS ARE GIVEN, BUY/SELL FUTURES WHEN THE CASH PRICE CROSSES THE BUY ABOVE/SELL BELOW LEVEL IN CASH

MEDIUM RISK / MEDIUM RETURN

NOTE : IN CASES WHERE CASH LEVELS ARE GIVEN, BUY/SELL FUTURES WHEN THE CASH PRICE CROSSES THE BUY ABOVE/SELL BELOW LEVEL IN CASH

CAIRN ( CASH – Rs.281.40) : The stock has closed on a strong note and has given strong indications of a big upmove. Buying is advised above Rs.283 for a target of Rs.286 and Rs.292. Higher target of Rs.295-296 is also possible. Stop Loss of Rs.273 should be kept.