XL Telecome SSl 200 and buy tgt 215,225
NTPC is looking good for the coming week and the stock is likely to test Rs225 on upside
scrip S1 S2 (Rs) R2 R1
NIFTY Futures4932 4972 4987 5005 5050 Go long ab R2,Go short below S2.
Adlabs Film 673 679 684 688 694 Buy on decline to S2.
Century Text 730 736 741 746 752 Go long with stop loss below S2.
DLF 685 692 696 701 707 Go long with stop loss below S2.
ICICI Bank 822 829 835 841 848 Go long with stop loss be S2.
Infosys 1504 1518 1526 1534 1548 Go long with stop loss below S2.
J P Associates 235 238 240 242 245 Go long with stop loss below S2.
Reliance 2320 2339 2348 2361 2378 Go long with sl bel S2.
rel Capital 1375 1388 1399 1408 1420 Go long with stop loss be S2.
RelComm 527 532 536 539 544 Go long ab R2,Go short S2.
Satyam 401 405 408 411 415 Go long with stop loss belS2.
SBI 1655 1668 1680 1692 1706 Go long with stop loss below S2.
The medium term setup suggests that a larger threewave corrective is over with an impressive weekly reversalbar. Momentum indicators too are signaling upsides hencewe are looking for Upside-Down, meaning a relief rally which would give an opportunity to take 10-15% profits from theindex, before another correction sets in, the chart alongsideshows those initial pending downsides at 14,000-13,000 which are lower channel supports.
The daily charts alongside show the shorter-term picturewhere a three-wave corrective is complete with positivedivergences and bullish signal cross overs. More over abullish inverted Head and Shoulder formation signals animmediate reversal. The ensuing rally should now target17,200, which is 55 DEMA, 38% retracement as well as a bearish gap area on the charts. The final targets for this correction could take this rally till 18,000-18,700, which is 50-61% retracement range for this fall and could fill the bearish island at 18,509. Bottom line trade long but with strict stop losses and don’t forget to book timely profits because the downtrend would be sharp once it resumes.Market opened on a positive note, but was unable to takeany clear direction till noon. The Sensex during the day made an inverse head-and-shoulder pattern, the breakout of which occurred in the last hour of trade. Thereon the market went one way northward till it finally closed near the day’s high. Nifty has breached the crucial downward trend line at 4,900 and finally closed with gains of 112+ points. At this juncture it would be ppropriate to assume that the current rally is wave 3 as per the Elliott wave theory, above 5050 the inimum target for which would be 5,200. The target seems quite likely considering the momentum indicator KST on the daily charts, which is well poised for upward momentum. Nifty on its way up may face resistance near 200-DEMA, which is around 5,050 levels, however on downside Nifty has support initially at the
neckline of the inverse head-and-shoulder pattern at 4,860 level. If Nifty breaches this initial support, the next support is around 4,800, which seems unlikely looking at the strong weekly closing. The breadth of the market were strongly dominated by bulls with the advance/decline ratio around 7:1. On the hourly chart, Nifty has given a breakout from the inverse head-and-shoulder pattern the target of which is5,350. The momentum indicator KST has given a positive crossover indicating bulls will continue to ride this rally in the coming trading sessions. Our short- and mid-term bias is up for the target of 5,050 and 5,400 with the short- and mid-term reversal pegged at 4,740 and 4,445 respectively.
