NDPMS Wealth Management

#thestocktalk February 19, 2014 Towards the later end of today's trading session, bulls victory over bears was almost confirmed. Last minute buying into the Indian cash markets put the perfect cherry on the bullish dessert. Nifty has closed above a major major 6150 resistance level, however as per my understanding, i would consider this as an actual bullish breakout, only when nifty closed above this level for this week at least. BankNifty working out same as the Nifty. Daily momentum indicators too speaking off the bullish tone. Nifty to face strong resistance at 6180 levels tomorrow. Our today's portfolio consisted of banking, Info Tech and Oil n gas front runners with an upside target of 1.5% and a stop at .5% of our entry levels.

In a broader perspective, the stock is oscillating within a wide range of `133 to `94. After a steep fall from `124, the stock slipped into a consolidation mode and moved in a narrow range for nearly two weeks. In the process, it has managed to find the support marginally above the lower end of the range and posted a low of `100.50. At this juncture, the hourly chart displays a breakout from the ‘Falling Wedge’ pattern at `104. The volumes have also picked up significantly during this price activity. In addition, the daily ‘RSI-Smoothened’ momentum oscillator is now on the verge of giving a positive crossover. Combining all the above technical evidences, we advise traders to buy the stock from current level to a decline up to `102. The stock initially has a potential to rise towards `116 and in extreme bullish scenario, it may even test `120 level. The stop loss for this trade set up can be maintained at `97.40.