Financial Daily from THE HINDU group of publications
Sunday, Dec 11, 2005
Financial Daily from THE HINDU group of publications Sunday, Dec 11, 2005 |
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Investment World
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Technical Analysis Markets - Stock Markets Near-term outlook remains bullish for Nifty B. Krishnakumar
NIFTY (2756.5) Preferred view: The market action was in line with expectations. The Nifty ruled firm and also moved to the target zone of 2740-2750 that was mentioned last week. The near-term outlook remains bullish, as the recent upward move does not appear complete. The index could move to the next target zone at 2820-2830. A close above this range may push the index within the striking distance of the 2900-mark. The positive short-term outlook would be valid as long as the support level at 2630-2640 remains intact. A close below 2630 would have negative implications and could push the index to the 2540-2550 band. Stop-loss for long positions may be placed 2680. Comments: After the sideways correction in the earlier week, the index went into a trending mode in the week gone by. The strong move on Friday pushed the Nifty to new historic highs and also resulted in a close above the psychological 2700-mark. Court approval of the proposed de-merger of Reliance Industries provided the impetus for the upward move on Friday. Quite a few mid-cap stocks have attracted market interest in the recent weeks. Prominent amongst them are companies such as Coromandel Fertiliser, Titan Industries, Godrej Industries, Aegis Logistics, Blue Star, VST Industries, and Asian Electronics. The companies in the logistics/transportation industry were prominent among the gainers. Gateway Distriparks, Container Corporation and Gati recorded sharp gains during the week. The outlook for most of these stocks remains bullish. Investors may hold with a tight stop-loss in place. Long-term view: The index appears to be headed towards the 3000-mark in the long term. This view would be valid as long as the index holds above the long-term negative trigger level of 2300. The positive outlook for quite a few index stocks tends to confirm the long-term bullish outlook for the index. SENSEX (9067.3) The index closed above the 9000-point mark during the week. Helped by the surge in the share price of Reliance Industries, the Sensex sailed past the 9000-point mark and closed above the level on Friday. The short-term outlook is positive and a move to 9200-9250 appears likely. This view would be invalidated on a close below 8750. CNX IT (3769.7) The movement in the index was in alignment with last week's expectations. The trend was bullish and the index moved to the target zone of 3700-3750. The short-term outlook is positive and a move to 3840-3850 could materialise. The positive outlook would be negated if the index closes below 3620.
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