DAILY REPORT FOR
NIFTY (5228 +63 pts)
Supp 5190/5145/5070 Res 5250/5320/5370
SENSEX (17600 +313 pts)
Supp 17550/17440/17230 Res 17710/17860/17980
· Banks, Auto and Realty stocks took the indices higher on Friday and the rally is slowly inching towards target of 5350-5400. Auto had been a gross underperformer in the rally so far but it too joined the bull-run and more gains are still possible in that sector.
· Markets to open flat to positive. Earnings season is almost over and now it is up to the liquidity flows to get the market higher. 17850-17950 is where this rally can have a breather. As this looks like a pullback rally, one should book profits regularly in this market. Sector and stock rotation is going to continue until we see any kind of profit-taking.
· For today’s trading, the trend looks sideways with range of the Nifty being 5300 to 5200. Fall below 5190 can take us to 5145. Reliance Industries looks to have another Rs 100 to go which can help the indices.
· Dr Reddy’s Labs (636):- Buy for target of 680-690. Keep SL of 612.
· Alok Textiles (68.90):- The stock can target 81-82 levels in short-term. Buy with SL 63
Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.