DAILY NIFTY OUTLOOK(25-01-12)
Yesterday it opened gapped up to mark the high of 5141 & formed the bullish flag pattern as shown with the brown colour in chart. Opening with the gap up & maintained to close near the top of the day against the event like RBI policy, just displays the dogmatic bullish determination of buyers against the wall of worries on economic fundamentals. Practically there is only one target 5215-5235 for the day; however for the unforeseen catastrophic event we label the support & resistance levels. For the day we see 5090-5175 as the trading range, breach below 5090 will head for 5030-5050(low probability) & cross above 5175 will lead to 5215-5235(high probability).
We recommend a buy on HCLTECH at 428 with the stop of 420 for the target of 455 & above.
We recommend a buy on RELINFRA at 478 with the stop of 463 for the 540 & 580 in next 15 days.
Bank nifty has been mercurial & high beta index compared to nifty as usual. Yesterday’s movement was swifter & sharper than nifty, however traders are warned that it very close to upper downward slopping weekly channel which market has respected for more than year & it may be too much to expect to cross this at first attempt. For the day we see 9700-10100 as trading range with 10250-10300 as resistance & 9500-9550 as support.
We recommend a buy on HCLTECH at 428 with the stop of 420 for the target of 455 & above.
We recommend a buy on RELINFRA at 478 with the stop of 463 for the 540 & 580 in next 15 days.
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