NDPMS Wealth Management

#thestocktalk - January 17, 2014 After testing the resistance of 6330 level yesterday, a fall out back into the 6120-6300 zone was surely on the cards. Nifty crossed below an important level of 6317, retested the 6300 as a resistance level ultimately falling down the 6282 level and ending up at 6272 levels today. Our caution is still maintained as the various daily momentum indicators speak different languages. Same was the script presented to BAnkNifty by the sole power. BankNifty too has been pushed below 10976 level and is now staring a crucial support level of 10805. Cutting across below this level would mean a huge 3-4 % fallout out from current levels for beta sectors. Keenly waiting for "Big Boy" Reliance's Q3 earnings report at 1700 hrs today.

Cnx Nifty faced resistance at discussed levels of 6320 - 6330 levels and closed at 6318. Though it failed to  breakout to the upside above the resistance levels, it made sure, that it did not slip below the 6300 levels which shall clarify a bullish trend with buy on dips strategy across all large cap and mid cap stocks. On the banking side, bank nifty continued to show the bullish spark, however some selling pressure due to profit booking was witnessed. Stocks or the sectors to watch out are IT & Telecom and keep a keen eye on Reliance which has formed a W formation on technical canvas. Stay away from financial / banking sector until further clarification. Lemme tell you, if nifty has to break the significant level of 6320-6330, banking sector has to give its full support !!

CNX Nifty closed just above its daily 21 moving average. Nifty untill yesterday had been range bound with the band of 6250 on the upside and 6150  to the downside. However yesterday it seemed to have broken above the weekly band and has closed just above its 21 MA today. Traders still need to wait until there is a breakout either above or below the range to make long or short positions in high beta sector respectively. Stock Watch: Since the tricky nature of Nifty for the day persisted, it is advisable to have a micro view and be stock specific. Short PFC (power finance corp), Jan Series @149.5 levels with a target of 145 (3 %) to the downside. Keep a stop loss at 150.5. Trade days: 2-3 sessions Long DivisLab @ 1280-1285 levels with an upside target of 1340 (3%) with a stop loss of 1265. Trade Days 3-4 Sessions