In my previous report,I had mentioned that the immediate support for index was at 200-day SMA which was at 5618. Further I had mentioned that normally 200-day SMA act as support for prices, hence bounce could not be ruled out. The week began on a pessimistic note and selling dragged down the index to test the 200-day SMA and made a low of 5604 from where a bounced was witnessed. The Sensex ended with a net gain of 0.53% whereas nifty gained 0.55% previous week.
Pattern Formation: On the Daily chart, I'm observing a positive Divergence on the Elliot oscillator which suggests of upside momentum. Further I'm observing that prices have closed well above the 200-day SMA.
Future Outlook: Combining all the pattern formation on different time frame it is evident that we may witness a bounce from current levels. On the upside, 5751 – 5850 – 5940 ( spot) levels may act as resistance for the current week. On the other hand if nifty spot trades below 5604 the next support for nifty is at 5550 – 5500 – 5450 levels. Broadly, I ' ve opinion that initially we are likely to witness a bounce. However the trend remains down, hence rallies near the resistance levels mentioned above are likely to witnessed selling pressure.
Hence one should adopt cautious approach at current level. Technical Stock To Focus for short – mid term - ( keep Stop loss for any trade)
Buy HDFC Bank at current level or on a decline up to 610 (CMP 625) SL 600 Targets 640-656-670.
Data Alert From India –
Manufacturing PMI for March, by HSBC.
Data Alert From Overseas -
US ISM Manufacturing PMI at 7:30 pm
Domestic Stock Specific News –
India Apr-Dec current account gap 5.4% of GDP vs 4.1% year ago
India Apr-Feb fiscal gap 5.07 trln rupees, up 2.8% on yr
Moody's sees India power sector remaining grim over next 12-18 mos
US FDA lifts import alert on Aurobindo Pharma's Hyderabad unit
GMR Group co to sell stake in 2 South African coal mining assets
Novartis India promoter to cut stake to meet public shareholding norm
Godrej Properties launches affordable housing scheme in Ahmedabad
DQ Entertainment in licensing pact with Walmart for sale of DVDs
KEC Intl MD expects revenue to grow 20% in FY13, 15-20% in FY14
IL&FS Transport gets order for 13.5-bln-rupee road project
Bharat Electronics to mfg sub-assemblies for Boeing's F/A-18 jets
Source says BHEL to supply main equipment for 2x800 MW Gadarwara plant
Power minister says RBI, fin min OK transitional fund plan for power co
Valecha Engg gets orders worth 1.22bln rupees
Open Interest of derivative segment decreased to Rs 63701.41 Cr vs Rs 105111.98 Cr.
FIIs net sellers in index future to the amount of Rs 140.54 Cr and in index options net buyers to the amount of Rs 214.22 Cr.
Put-Call Ratio at 0.84 vs 0.80. (Bullish).
