Nifty may retrace to 5650-5700. All Eye on Infosys results.

Nifty has had a negative closing week after   a  strong run up to key resistance level of  5950.It may retrace  back to 5650-5700. This zone offers a good buying opportunity. Market will look for Infosys results to be announced on next Friday.
Meanwhile , Pharma stocks are showing some signs of strength.Ajanta Pharma has made multiple bottom at 195  and offers  good buying opportunity at 220-225 with strong support at 200 and the next target seems to be 250-260-270.  It has broken out with huge surge in volume.Biocon and JB Pharma are another stocks in this space which are  showing relative strength. Here one thing is to noted that JB Pharma is trading at life time high and life time highs should always be bought.It has support at 130 and traget is 200.
 Something is happening in Graphite  space.Stocks like Graphite India and HEG  are showing buying patterns on the charts.

Nifty above 5300 : needs to sustain above it

Nifty did go below 5300  thus violating a crucial pivot point but  had an equally sharp bounce back. The improvement in geo -political situation may also improve sentiments and  lower crude prices  will augur well for Oil Marketing companies like BPCL, HPCL and IOC.
Banks stocks had a sharp bounce back and may continue to rise further. Budget related stocks from fertilizer sectors like United Phosphorous are expected to do well .
Jubilant foods , Kiri dyes are good long term bets at this satge.
Inflation is expected to cool down in coming months and China is also tightening its credit policy this will result in softening of commodity prices which again help in cooling off inflationary pressure.Therefore, this dip offers  an opportunity to  buy  with 25 % of your capital ( out of capital allocated for equity investment)

As long as Nifty is able to trade above 5300 the longer term bull market remains intact.

5300 is crucial now : Buy Kiri dyes in small qunatity

Nifty made a  down move as we wrote  this  probability of its going down  in our earlier post. Now as per the Dow theory as long as Nifty is able to trade above 5300 the bull market remains intact . Nifty going below 5300 will be a sign of reversal of   uptrend on weekly charts . If this happens then then the  long term trend line on Nifty weekly charts will be violated and the markets will be in bear phase.
Lets see how the events fan out in the coming week. Rising Inflation is already priced in. Geopolitical tension is likely to subside and back home the focus will be on budget session.
Pharma , Fertilizer and IT stocks will be on our radar .

Kiri dyes and chemicals offer a good  buying opportunity for long term investment of one year horizon. One should buy in small quantity  by buying  25 %  at a time.

Power of Chart Analysis

We posted earlier on our blog about the chart patterns of Orchid Chemical, Lupin, Bio Con, TaTa Chemiclas , Arvind and Nagarjuna Construnction.
The bottoming out patterns were there and once Nifty was able to take the key resistance level of 6070 there was no looking back for these stocks.
We were early to identify the pattern and once market support was there these stocks out performed. Therefore, one need to identify the chart patterns , identify low risk entry areas and then wait for the things to fold out .

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.

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

Videocon and Lupin

Videocon  Ind has mad a multi bottom at 258 and has developed a range at upper prize band being at 270.Traders should watch for  breach of either of these levels .
Lupin has had a closing at life time high and is poised to move higher from here

Shipping Sector

 As we expected yesterday Nity had a flat session but shipping sector as a whole zoomed and came out of troubled water with GE Shipping cruising ahead of all. MLL and SCI also followed it. Now for GE shipping the pivot is 340 and if it can retest it then its a good buying area. For initiating long at this stage 340 is support and resistance is at 400.

Some fertilizer stocks also showed upward traction. Manglore Chemical and Fertilizer has support at 41 and resistance at 50-55
Today Nifty may trade above 6150 and if it closes above 6150 then we may see it facing hurdles at 6230-6250
Trade less , trade well

ICICI Bank

ICICI Bank was up more than 6 % on last trading session on the back of better than expected Quarterly result. This stock has now support at 1105 and resistances are at 1245-1275 and 1300.
Bajaj Auto has support at 1480 and resistances are at 1540-1580 and 1615.This stock is coming out of downward sloping channel and has consolidated a lot.

If Nifty is able to trade above 6150 then we may see some more upside provided RBI credit policy and Fed QE goes well with the market.
Nifty has got supports at 5930-5960 and resistances are at 6150.

Trade less, trade well.

Banks outshine again

PSU Banks are outperforming in this ranged market.
Dena bank had a spectacular closing yesterday with large volume and this stock can be accumulated at every dip.
Crew BOS has support at 185 and resistance is at 230. This stock also closed at new high.
Textile sector is another space which is outperforming the broader market. Keep Arvind  Mill on your radar.
Markets may remain volatile on the back of future and options expiry.
Nifty has support at 6030-6050 and resisatnce is at 6150

PSU banks as a sector outperforms

Banking space is the one space where one is going to make money consistently.

Andhra bank, Allahabad bank, Canara Bank all are trading at new highs and any dip should be used to buy.


Karur Vyasya Bank has come out of consolidation and may face resistance at 590-610


Trade less, trade well

Canara Bank and Central Bank zooms

Yesterday we talked about Canara bank and Central Bank and both of them performed well. Though market also supported the move but nonetheless both of them had a very good chart pattern.

Markets had a smart rally yesterday. Some of stocks made a new high after a  long consolidation.

Bhushan Steel and United Phos are the two stocks which saw a sharp run up to new highs .

Bank of India has also seems to have resumed its uptrend.

Smart recovery but the correction is not over

Yesterday  Nifty bounced back from key support levels but the correction is far from over . It needs to close above 6180 .Going forward Nifty may remain volatile as result season kiks in and may trade in a range.

Bank of India can be bought on intraday basis with stop of 524 and possible target of 538-550.


There are some stocks which are in correction mode but may come out of it and resume uptrend. Mcdowel, Exide and SRF fall into this category. Keep them on your radar . Of these three SRF looks strong on charts.

Nifty is at support level : Textile Sector in Focus

Nifty is trading at crucial support levels. Liquidity may tighten up  a bit on the back of Coal India IPO  but 5960-6030 are support areas.We may see  a pull back to 6150-6180 levels
Textile stocks as a sector has shown momentum build up.Garden Silk, Raymond, SKumars are good bet.
 Arvind has support at 47 and resistances are at 60-62.
Uflex has support at 290 and resistance at 350.

Shipping Stocks Zoom

Yesterday shipping sectors saw momentum on the back of short covering and initiation of some long positions.

Though most of the stocks have been trading in  a range GE shipping may break out of the range . The upper part of the range is at 325 and once it trades above it then it may zoom to 340-350.

Bank of India  and M & M closed at life time high and they become a buy on dips stocks.

Oriental Bank of Commerce has support at 448 and resistances are at 476-500.

Berger Paint

Nifty showing somecsign of tiredness and frontliners are also showing pause .

Welcorp has support at 255 and resistances are at 275-280

Berger Paint  has support at 106 and resistances are at

123-130