Technical Analyst, E Mathew is of the view that one can buy Bajaj Hindusthan and Balrampur Chini on declines in sugar sector.

Mathew told CNBC-TV18, "Sugar sector itself was displaying strength, and even now in this market both Bajaj Hindusthan and especially Balrampur qualifies as a buy on declines. In fact, Balrampur has got very strong support at around about the 70-74 zone, that incidentally becomes your stoploss also. On a market sell off, one could possibly accumulate the stock. One could play for a bounce up all the way to Rs 86-88 zone - that is the stiff resistance zone. Beyond that of course one could look at the Rs 95 too. As of now I think Balrampur and Bajaj Hindusthan, in fact the entire sugar sector, is still not showing the sort of weakness which one is seeing in quite a few of the other sectors."

Disclosure: It is safe to assume that analyst & his clients may have an interest in the stocks/sectors discussed.

Source : MoneyControl

Sensex (14833): Well the market survived the onslaught and short covering came. We had always maintained that Short covering could come in near strong supports of 4448. The market never cracked 4448 and bounced very near it, looks like short covering could move the market up before the long weekend.

The support for the Sensex is at 14500-13462 and the resistance to the up move at 15480.

NSE Nifty (4533): The support for the Nifty is at 4448-4353 and resistance to the up move at 4640.

Source : MoneyControl

The markets opened on a steady note and proceeded to see saw through the session before finally closing way off the intraday perches. The market breadth was negative as the combined exchange figures were 1088 : 2781. The capitalisation of the breadth was also negative as the commensurate figures were Rs 9354 Crs : Rs 12433 Crs. The f&o data for the session indicated a higher turnover as traders participated in the day's volatility. The Nifty PCR eased to 0.83 which indicates some bear covering.

The indices have closed at the lower end of the intraday range as the bulls were on the back foot on the eve of the FOMC meet. That the market internals were negative indicated a bias towards profit sales on advances. The 4340 / 4670 range specified for Tuesday held as both parameters were not tested.

The coming session is likely to witness a range of 4440 on declines and 4680 on advances. The traded volumes above the 4570 levels will determine the strength of the buying by the bulls as this level is the bullish pivot for the coming session.

The market internals indicate a higher turnover as the participation levels rose. The number of trades increased and the average ticket size was higher, indicating buying bias in the markets by weak players. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets today is that of cautious optimism as the overseas triggers ( FOMC meet ) will impact domestic sentiments. Should the cues be strongly positive, attempt small sized buys.

Disclosure: The analyst has no exposure to any scrip/s recommended above.

Source : MoneyControl

Sensex: (15761)

Nifty: (4746)

14.3.2008

We said ‘Technical the market is at a very crucial juncture…and I go back to my analysis of some weeks back where I had said the previous Sensex low of 15332 could be tested as the next strong support exists at 15003 and 14942 but Nifty low of 4449 is a line in the stone…and if that goes then we are in rough weather’

The market unfolded as expected…the Sensex tested the previous low of 15332 but Nifty low of 4449 stood its ground…

Technically the analysis is still the same…we have a very strong support at 15003 and at 14942 on the Sensex front and our Nifty low of 4449 is still a line in the stone…we have just a three day week as Thursday & Friday is a holiday and the market is not likely to show any fireworks…yes…short covering could hold the market near our strong supports…

The crucial support for the Sensex is at 15003-14942 the resistance to the up move at 16550

The crucial support for the Nifty is at 4455 and the resistance to the up move at 4800

From a trading point of view I would cover my shorts, as bounce is a possibility

Happy Trading,

Source : PRAKASH GABA

Market Review for 19th March 2008

Sensex :(14833) well the market survived the onslaught and short covering came…we had always maintained that Short covering could come in near strong supports of 4448…the market never cracked 4448 and bounced very near it…looks like short covering could move the market up before the long weekend...

The support for the Sensex is at 14500-13462 and the resistance to the up move at 15480

NSE Nifty: (4533) the support for the Nifty is at 4448-4353 and resistance to the up move at 4640

Source : PRAKASH GABA

Technical Analyst, E Mathew is of the view that RPL has strong support at Rs 140-142 zone.

Mathew Told CNBC-TV18, "RPL was showing quite a lot of strength till yesterday and in this recent carnage also it went nowhere near that 22 January low. Today of course some negative news came but inspite of that, I think the stock has got very strong support at the Rs 140-142 zone. This stock has the potential now if the Nifty is in the process of consolidating and it starts moving up and if it takes the positive cues globally, then we could see Reliance Petro possibly move up to Rs 165 and beyond that even all the way upto Rs 172-175".

Disclosure: It is safe to assume that analyst & his clients may have an interest in the stocks/sectors discussed.

Source : MoneyControl

Technical Analyst, E Mathew is of the view that Ranbaxy is showing short term weakness.

Mathew Told CNBC-TV18, "Most of the pharmaceuticals stocks are looking good. Orchid Chemicals is an exception but unfortunately the incident in Orchid is now being utilized as an opportunity to paint all possibly some of the smaller pharma companies with the same brush, which I don’t think is fair. But if you look at something like a Ranbaxy, it is showing a short-term weakness. But, at lower levels, Ranbaxy may be, if it drifts by about Rs 10-15 odd from the current levels, Ranbaxy would also qualify as a buy on declines rather than a sell on rise".

Disclosure: It is safe to assume that analyst & his clients may have an interest in the stocks/sectors discussed.

Source : MoneyControl

Technical Analyst, E Mathew is of the view that in case JP Associates stop loss should be kept at Rs 180.

Mathew told CNBC-TV18, "JP Associates if one compares it chartically of course with RPL, it is not showing that kind of strength but having said that I must say that the stock has been extremely oversold and I think if one is looking for something like a trading bet, possibly at lower levels may be if it comes down to round about the Rs 185 zone, keeping a stop loss of around about Rs 180 odd one could take a short-term put into this".

Disclosure: It is safe to assume that analyst & his clients may have an interest in the stocks/sectors discussed.

Source : MoneyControl

The markets opened with a gap down as the overseas cues eroded sentiments at the outset and the bulls simply crumbled under the onslaught. The market breadth was negative as the combined exchange figures were 345 : 3547. The capitalisation of the breadth was also negative as the commensurate figures were Rs 332 Crs : Rs 17550 Crs. The f&o data for the session indicated a truncated turnover as traders shirked from longs at lower levels.

The indices have closed at the lower end of the intraday range as the bears were on the prowl, daggers drawn. That the market internals were negative indicates a higher weight of evidence towards further declines. The 4650 / 4850 range specified for Monday was violated by a wide margin.

The coming session is likely to witness a range of 4340 on declines and 4670 on advances. The traded volumes below the 4580 levels will determine the strength of the selling by the bears as this level is the bearish pivot for the coming session.

The market internals indicate a marginally lower turnover as the participation levels fell insignificantly. The number of trades decreased and the average ticket size was lower, indicating mild buying bias in the markets by weak players. The capitalisation of the market was lower in line with a down tick session.

The outlook for the markets today is that of caution as the overseas triggers ( FOMC meet ) will determine the near term sentiments. Aggressive bulge bracket trades are ruled out for now.

Disclosure: The analyst has no exposure to any scrip/s recommended above

Source : MoneyControl

Sensex (14809): Well there was too much of activity but the market is now very close to strong support of 4448. Will it survive is the big question. Now the last hope for a bounce is 4448 on the Nifty.

The support for the Sensex is at 14500-13462 and the resistance to the up move at 15700.

NSE Nifty (4503): The support for the Nifty is at 4448-4353 and resistance to the up move at 4640.

Source : MoneyControl

Technical Analyst, Sudarshan Sukhani is of the view that more upside left in steel stocks. He further added that correction can occur in steel sector if the broad market sells off in the next week . Tata Steel is little behind but rest of the midcap and SAIL are heading for much higher levels.

Sukhani told CNBC-TV18, "Small correction could occur in steel sector which means that if the broad market sells off in the next week then these stocks are not going to go against it."

He further added, "But beyond that I think there is a lot more upside left in these stocks they are just beginning a bull run, steel is doing amazing things on the charts. Tata Steel is little behind but rest of the midcap and SAIL are heading for much higher levels."

Source : MoneyControl

Technical Analyst, Sudarshan Sukhani is of the view that one should stay away from fertilizer stocks as the fertilizer seems to give the impression that it is going into a period of consolidation, now such periods are not good for traders while investors can simply wait on because consolidation will also be completed at some point of time and traders may not find the momentum that they are looking for.

Sukhani told CNBC-TV18, "I would stay away from fertilizer stocks. The fertilizer seems to give the impression that it is going into a period of consolidation. Such periods are not good for traders while investors can simply wait on because consolidation will also be completed at some point of time and traders may not find the momentum that they are looking for. So fertilizer would be a sector, which I would say okay let it do it’s own thing and rest it out."

Source : MoneyControl

Technical Analyst, Vijay Bhambwani:

The markets opened on a bullish note but ended off their intraday perches as the 6005 resistance specified for Thursday proved to be a formidable one in the near term. The indices ended in the green but the activity was clearly indicating a lack of follow up buying conviction at higher levels. The market breadth was positive as the combined exchange figures were 2408 : 1553. The capitalisation of the breadth was also positive as the commensurate figures were Rs 17257 Crs : Rs 14360 Crs. The f&o data for the session indicated a 0.61 % increase in net long positions amidst a marginal fall in the Nifty PCR.

The indices have closed off their intraday highs and in the lower half of the intraday range. The traded volumes being higher on an insipid session indicates a possibility of distribution at higher levels in the absolute short term. The closing on the daily charts is still at it's highest which could be a consolation for the bulls. The market breadth indicates a continued buying bias from the retail segment till the fag end of the session. The range for Friday will be 6025 on advances and 5885 on declines. The session could go to the bulls provided the Nifty spot remains above the 5985 - 5990 band on higher volumes.

The outlook for today is that of guarded optimism as the weekend factor and overseas cues will impact the immediate sentiments. Ignore aggressive big ticket fresh buys for now.

Disclosure: The analyst has no exposure to any scrip/s recommended above.

Source : MoneyControl