FUTURE PAISE: Market Trends

Wednesday, October 19, 2011

Market Trends

19 October 2011

SENSEX (Close - 16748.30) Sensex opened with a huge gap down this time and remains in that range for whole day. It was just too limited move to trade. We have seen Dow Jones moving higher over 1.60% last night and that will now cause a moderate gap up opening. In between, Apple earnings disappoint the wall street. Technicals suggest that we might see little gap up today but those rise might not sustain. We have already seen a sharp sell off in whole technology pack after TCS quarterly result. I am not very much optimistic towards today's trade. Technical support will be at 16650 levels while it will face stiff resistance above 16900 levels only. Cross over of 16900 will trigger a strong buy.

Support -16650/16540/16400 Resistance - 16900/17070/17212

NIFTY (Close - 5037.50) Nifty has 50 days moving average at 5004. If it breaks and sustain below 5004 then we can see the end of hope for strong rise. As of now it looks like to open near 5070 and so technical resistance will be expected near 5100 levels.Support - 5004/4990/4950 Resistance - 5100/5148/5170

SAIL (Close - 103.40) This stock has multi year low of 98. Somehow it has not responded strong with the recent recovery in index and remains weaker. Technicals are suggesting for re-test of 98. I am advising short on rise above 104-105 with stop loss above 106. Expect 100 to 98 sooner.

Support - 102/100/98 Resistance - 105/106/107

BHEL (Close - 321.70) We have not seen strength at higher levels on this stock. As long as it is sustaining below 325, it has every chance of fall. Technically use levels near 324 to short this stock with stop loss just above 327. I hope that gap up will provide the higher ranges.

Support - 319/317/315 Resistance - 324/327/330

LT (Close - 1348.70) A close below 1354 is concerning. Technicals suggests that as long as it sustain below 1354 we can expect a fall towards 1302 levels anytime. After a gap up if we get 1365+ then it will be good to trade on short side. Maintain stop loss of 10 rupees only.

Support - 1338/1321/1302 Resistance - 1354/1365/1375

INFOSYS As remain hold 2670 bull favour Above 2715 stay with volume It will show strength.

HCL TECH Disappoints Results... Below 410 bear favour...

RELIANCE Panic to Buy... Worst and result fever is over.

HINDALCO Below 130-131 weakness continue And likely test... Above...do not remain short position.

CHAMBAL FERT: (87.45) 84.50 a crucial support break below which it'll fall down to 81.75 where buying support will be seen & it'll surge up correctively to 94. Downward side break below 81.75 it'll fall down to 76.50.

ONELIFECAP ( Onelife Capital Advisors Limited )