LUPIN : Is the correction over ?

Lupin has consolidated on daily charts and it closed above the previous week high. If it is able to close above 466 then it will be two week high closing for this stock.On the backdrop of sectoral tail wind this stocks may move higher to its resistance levels of 480-498. It has got multiple support at 445
Trade less, trade well

Merry X mas

Nifty was bale to able to regain 6000 on the last day of the week.
There are a very few sectors that are taking the Nifty up.
From the pharma pack Sun Pharma, Orchid Chemicals  and Bio Con looks strong on charts.
Tata Chemicals and Nagarjuna construction seem to have bottomed out.
Mid cap space is showing lots of buying interest and some of the fallen hero like Crew Bos, Hanung Toys etc may show some more upside from here.
Tata Chemical has support at 380 and res are at 416/ 425

Food Inflation :

We posted on our blog earlier in November that food inflation is here to stay.
http://swingtradingideas.blogspot.com/2010/11/food-inflation-is-here-to-stay.html

Yesterday these factors coupled with some more internal factors resulted in lackluster session. As far as Nifty is concerned 6070 remains a major hurdle. On charts Nifty is making  lower top . On the other hand 5900-5950 remains strong support.
Orchid Chemical looks strong on chart and so does Vijaya Bank. But overall Banking sector is not performing  therefore, sectoral tail wind is not there for Vijaya Bank but its a buy on dip stocks.
Pharma  and IT sector may remain isolated from rising inflation and Interest rate worries .

Metal Sector outshines : Bhushan Steel

The sectors which we described earlier moved as per the probability we foresaw.
Bhushan steel seems to coming out of consolidation and has potential to move up to 490 - 500.
On LME Copper is making new high . Sterlite has  a very choppy chart . It has multi support at 160  and 180-190 is resistance zone.
As far as Nifty is concerned the level of 6070 is very important. Once it trade above this level for  few session then only we can see some more upside.

IT, Oil and Gas, Metal & Phrama may provide support to the broader market.

Last week though truncated saw Nifty having a positive closing supported by IT, Metal and Oil  & Gas sector.
We believe these sector may provide support to Nifty. Nifty has a stiff pivot resistance at 6070. Once it is able to trade above this level then only we can expect some more upside to 6150-6200 lvl\s.
Aurbindo Pharma is poised to make a new high.TCS and Infosys may surprise us on upside.

Will Reliance provide leadership in 2011.

Markets are inching back to upward resistance levels with lots of worry in short term which may result in some volatility.
Metals stocks have done well in the recent pull back. Reliance has provided support to the Indices. Banks are still under performing. Will Oil and Gas , Infra and Metal will provide leadership in next bull run ? We will be tracking these sectors closely .
Will Reliance provide the leadership in the next year? Is has multi support at 900-950 and stiff resistance at 1140-1150.
We are also presenting here the monthly chart of Reliance.

Time to sip coffee

Markets are still volatile but Nifty managed to close above 100 EMA amids lots of news flow both positive and negative.Resistances are at 5930-5950 and supports are at 5800-5850.

In this recent carnage some of good stocks got hammered for no apparent reason . They have corrected to 200 EMA and now are showing resumption of uptrend.
Tata Coffee  CCL are some of the stocks one should consider. Tata coffee has good support at 480 and resistance at 590.
Small PSU banks like UCO bank , Vijaya Bnaks are showing good buy patterns on charts.

Nifty may trade in a range and action may shift to individual stocks .

Trade less, trade well