Technical Analysis of Indian Equities by Nooresh

Nifty and Bank Nifty – At critical support levels and risk-reward buy areas . Kotak Mahindra and IDFC

Nifty blog

 

Nifty Technical View:

As being mentioned before 5080-5120 is a buy area for Nifty with a stoploss below 5020 on closing basis.

Technically previous top at 5020 and lots of bottoms at 5020-5050 makes it an excellent support area. Ideally even if this has to break we should see a brief move to a minimum of 5120/5200.

Today we did see Nifty spot hit 5032 lows and was quoting at 35 points future in next month with lows at 5070.

On the upside 5120/5140 has been a resistance for the last 2-3 sessions. A closing above those levels would be a first indication of a reversal.

Taking a risk-reward positional play keep a stoploss of 5020 on closing basis or a quick trader can do so with 5032.

If the reversal we would expect 5190 gap to be filled and next stop at 5260. One may then trail the position.

We may review the movements as it goes from here.

 

BankNiftyBlog

 

Bank Nifty – In our previous update we were waiting for a test of 10k-10.2k as a buying area with a stoploss of 9800. The index is into the range and one may expect some good recovery in banking stocks.

 

Preferred stocks – Kotak Mahindra Bank and IDFC

 

KotakMahindra

 

IDFC

 

Meanwhile one of the major bad picks were to get into Banking stocks which i was expecting to breakout. Apart from Yes Bank had to exit the others on small stoplosses. Good to have executed the same else the way IOB and Dena have cracked is bad. link here. Although still stuck up on South India Bank as bought closer to this levels of 23.5-24.

 

Some Thoughts

Read a good status update – India at Inflection point – Decide you want to be a Warrior or Worrier.

Well this is what we are placed at in current juncture of markets with many midcaps collapsing ( although quite a lot of them today were manipulated ones or having pledged shares – pipavav, parsvnath, glodyne.) At the same time value stocks like nesco or defensive ones dont take much of a hit.

 

Right now at current levels of 5000 Nifty and 16500 there might be many people looking at new lows but on a broader market basis and even on large caps. Will be posting an article on Index weightage and how it distorts the reality.

 

Fundamentally there are a lot of concerns but there was a sort of End of the World in 2008 but we did get back to our feet. Although have generally become optimistic whenever market cracks and that has helped. But right now the technical belief is holding 5k or say even 4800 for next 1-2 months will create base for something big on the upside. Lets see how it works. Time to deploy cash if you believe the long term story in India – If you dont 🙂 FDs are still a good option.

 

 

TECHNICAL ANALYSIS TRAINING MUMBAI --- JULY 28-29

 

For more details call  nooreshtech@analyseindia.com or call 09819225396 Nooresh

Article by Nooresh Merani

Nooresh has written 2581 articles.

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{ 5 comments… add one }
  • sanjay July 28, 2012, 17:46

    Hi Nooresh,

    Last weeks selling in IOB has hammered the stock down to 69 from 85 levels. I have purchased 50% of intended quantity at that rate (70) and wish to buy remaining. However with stock touch 52 weeks low, what is the right level to buy this stock? I have seen comments on financial sites that it can go to as low as 50 ?
    I can hold on for atleast a year with attractive dividend yield of 6% from current levels.
    Kindly guide.

    Regards,
    Sanjay

    Reply
    • Nooresh July 30, 2012, 11:21

      Hi Sanjay.

      Looks interesting with yield but would suggest you to accumulate over time then price.

      Reply
  • DEEPAKGAJRA July 29, 2012, 17:56

    GREETING SIRJI,
    WISH GOOD LUCK FOR ONE MORE WIN BULEYE
    ANY UPDATE FOR SOUTH INDIAN BANK
    I BOT @24 AS PAR YOUR CALL FOR TGT 30
    NOW 23.5+/-

    THXXX

    REGD,

    DEEPAKGAJRA

    Reply
    • Nooresh July 30, 2012, 11:20

      Hi Deepak,

      The stock did not breakout as expected. Would suggest to hold for medium term. sl 22

      Reply
  • charanjeet wadhera May 1, 2013, 13:10

    Hi!
    would you please tell me about the ORBITCORP share at the current market price of Rs. 25 now. What is future prospects for one year and what will be the target price for this stock?.
    Thanks.
    Chani

    Reply

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