// SHREE // Technical Research for coming week 3rd Feb 2014 NIFTY On monthly chart Nifty has given a 2 month lower close in Jan this is a sign of weakness (lower then Nov and Dec ), It has also formed a rising wedge this suggests caution , Nifty has given a short term trend reversal signal as it has closed below the monthly upward sloping trendline and lower then the previous higher low of 6139. On weekly chart Nifty is forming a Rounding top and indicates that it will face strong resistance at recent top and it will consolidate and correct sharply if it at all pullbacks on the upside as then the 78.6 % retracement will come in to play and it can then correct to 5350( 78.6 %) levels and fill the gap present on the down side ( Note : This will only get achived in near future if Nifty closes below the 200dam at 5972 in the next down move after giving a bounce and in case if Nifty moves higher then 6359 then it will open up possibility for a rally , but finally it will correct sharply as the rising wedge will get matured). Nifty will start the process of forming the right shoulder of the bearish H&S Pattern it will have its neckline at 5972.( To form the right shoulder Nifty has to give a bounce from the lows and climb higher to 6235 / 6295 and consolidate at the top and retrace back to 5972 and give a downward breakout below the neck line at 5972) this suggest bearishness. On daily chart Nifty has closed below all the major moving averages and has formed a gap this is a negative sign. All the major indicators are weak and may improve from the lows In the coming week Nifty will find support at 200dma @ 5972 and give a sharp bounce fill the gap formed on the upside at 6188 / 6265 test the 12dma weekly. Note : Currently upside for Nifty is capped at 6265 / 6301 Bias : Weak Trading range : 6188 / 6265 5972 / 5801 Support : 6027 / 5972 / 5945 / 5876 ... 5825 Resistance : 6139 / 6171 / 6231 and 6265 Trades for Nifty 1) Sell below 6067 target 6027 / 5972 stop at 6099 2) Sell below 6027 target 5972 / 5945 stop at 6068 3) Sell on rise around 6229 target 5972 and below stop at 6309 4) Buy lower puts with 5972 as target 5) Buy calls once near 5951 with target of 6188 BANK NIFTY On monthly chart BankNifty has formed a major downward sloping trendline market at 11778, with two lower highs this suggest that BankNifty is in its C wave of the A-B-C corrective,It has also formed a Big Symmetrical triangle with its lower limit in form of upward sloping trendline is marked at 9258 and indicate the it will fill the gap present on the downside in near future. BankNifty has closed below all the major averages, the previous higher low (10410) and below the bearish H&S Neckline this is a shortterm trend reversal signal. The next important support on the downside are seen at 9781 and 9582. In the coming weeks BankNifty will find support at the above levels and show a sharp bounce on the upside and test the moving averages present above at higher levels. Bias : Weak Trading range : 10786 / 10915 9781 / 9582 Support : 10101 / 9877 / 9781 / 9582 Resistance : 10410 / 10635 / 10768(12dma) / 10915 (100dma) / 11095 ( 200dma) Note : Bank Nifty Should be sold at highs if it at all test the above resistance / moving averages , the upside is capped at 10900 / 11050 Trades for BankNifty 1) Sell on rise target 9730 / 9652 stop at 10569 2) Sell below 10101 target 9730 / 9652 stop at 10355 3) Buy OTM Calls/ Puts 4) Buy around 9588/9631 target 10101 / 10338 stop at 9249 5) Buy higher calls once near 9600 6) Sell around 10890 stop 1150 target 10101 7) Buy puts once near 10890 Technical Stock Picks ACC : Buy target 1061 stop at 969.55 Adaniport : Buy higher call target 153 / 159 Anantraj : Buy in between 50.55 / 45.55 with target of 63 / 67 stop at 42.55 BharatForge : Sell on rise around 361 target 335 and 318 stop 371 Bhel : Buy / buy above 175.65 target 181.85 stop 172 Hindalco : Buy with stop of 106.55 target 113.9. HINDUNILEVER : Buy / buy above 584.95 target 605 / 623 stop at 567. ITC : Buy above 332.15 target 352.55 stop 322.95 REC : Positional trade Buy with target of 201 stop 166 PFC : Buy target 145.65 / 153 stop at 128 Prepared by: Jai B Solanki (Technical Analyst / Business Associate of MOSL ) Email : Jaisolanki.ta@gmail Mobile : 9833144578
Posted on: Sun, 02 Feb 2014 16:40:34 +0000
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