Downtrend Interrupted Short-Term: Piercing through the down trendline, market interrupted the downwards progression with the 14-day RSI approaching 65 reading. In immediate-term, strength above 26,969 level would perpetuate positivity towards 27145 level. On the downside, a relapse below 26,687 level would expose risk for weakness towards 26,453 and 26,190 levels. Trade accordingly. General Outlook: Recovery from 25,384 level has interrupted the downwards correction initiated from Jan’14 high of 27,213 level, marked as wave iv of bullish impulse started from Oct’13 low of 21,476 level. To transpire this interruption into continuation of primary bull trend in wave v, we need a break above Jan’14 high of 27,213 level with clear five wave pattern visible on minute filters. Such action would mitigate chances of extended correction, and set continuation of primary bull trend possibly towards the 161.8% projection for the third cycle degree wave at 29,039 level. Slippage below 26,137 — 26,044 levels would reinforce the corrective trend for the 50% retracement at 24,706 level. Add positions on sustained break above 26,860 — 27,213 levels. Preferred plays include ENGRO, PSO, AICL, PTC, SNGP, PAEL, NRL, EPCL, AKBL, FABL and BOP. 13-day Leaders: TRG, PAKT, ICI, MUREB, HBL, PSO, EFUL, BAHL, UBL & JDWS 13-day Laggards: JSCL, GRAYS, NCL, CEPB, NBP, TRIPF, AGIL, ANL, FML & NESTLE
Posted on: Mon, 10 Mar 2014 04:19:50 +0000
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