Weekly Update 22 Oct 2011

8/3/2019 Weekly Update 22 Oct 2011

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WEEKLY TRADING HIGHLIGHTS & OUTLOOK 22 Oct, 11

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MARKET OUTLOOK

The Nifty opened on a positive note and registered an intraweek high of 5160 levels. The Indexwitnessed selling pressure from the higher level which led it to decline to an intraweek low of

5011. The index finally closed at 5049 levels with a loss of 82 points.

The index consolidated in a narrow range of 5000-5170 after witnessing a sharp rise of almost 5

% in the previous 2 weeks. As long as index remains in this range, we are likely to witness avolatile and choppy trading sessions. On the upside the index has multiple resistances at the

5170 (Recent swing top) / 5230 (Negative Gap resistance level). On the downside a close belowthe 5000 level could see the declining momentum accentuate to the levels of 4960 /4910 /4880

levels.

Sustenance above the 5230 level could see the index filling up its negative gap and the index

could head towards the level of 5270 / 5330 in a short span of time.

S&PCNXNIFTY

OPEN 5156.2

HIGH 5160.2

LOW 5011.05

CLOSE 5049.95

Change(pts) -82.35

Change (%) -1.6%


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MARKET OUTLOOK

The SENSEX opened on a positive note and registered an intraweek high of 17188 levels. The

Index witnessed selling pressure from the higher level which led it to decline to an intraweek low

of 16669. The index finally closed at 16785 levels with a loss of 297 points.

The index consolidated in a narrow range of 17200-16650 after witnessing a sharp rise of morethan 5 %in the previous 2 weeks. As long as index remains in this range, we are likely to witness

a volatile and choppy trading sessions. On the upside the index has multiple resistances at the17210 (Recent swing top) / 17360 (Negative Gap resistance level). On the downside a close

below the 16650 level could see the declining momentum accentuate to the levels of 16515/16180 /16000 levels.

Sustenance above the 17360 would see the index filling up its negative gap and it could headtowards the levels of 17500 / 17650 levels in a short span of time.

Key Levels & Averages

INDEX Close Support-1 Support-2 Resistance-1 Resistance-2 8 DMA 34 DMA 200 DMA

SENSEX 16785 16650 16515 17210 17360 16819 16733 18435NIFTY 5132 5060 5115 5230 5300 5058 5030 5533

BANK-NIFTY 9695 9520 9380 9920 10030 9628 9590 10618

BSE -SENSEX

OPEN 17176.05

HIGH 17188.55

LOW 16669.04

CLOSE 16785.64

Change(pts) -297.05

Change (%) -1.74%


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TRADING RECOMMENDATIONS

Alok Industries Ltd. CMP ` 19.50Technical Outlook & Trading Strategy:-On the daily chart the share price of Alok Ind. has registered a breakout from ascending triangle pattern. Tradersshould note that ascending triangle patterns signifies accumulation and suggest price advance once the breakout isrecorded. The mom entum indicators on the da ily chart are also in a bullish zone suggesting more up side in the stock.The stock is also sustaining above its cluster of moving averages adding we ight to the Bullish argument.We recommend traders to buy in the range of `19.4` 19.6 levels with a stop loss placed below `18.8 levels fortargets of `21 `22levels, expected to be achieved over the coming few W eeks.

Arvind Ltd. CMP` 106.60Technical Outlook & Trading Strategy:-On the weekly chart the stock has registered a running breakout to its rising channel resistance trend line. Thebreakout has been registered with the robust volume on the weekly chart. The MACD indicator on the weekly chart isalso in a bullish zone suggesting more upside in the stock.We recommend traders to buy in the range of `106`107 levels with a stop loss placed below `103.4 levels fortargets of `111/`115 levels

CLOSE (CMP) 19.50

SUPPORT-1 18.80

SUPPORT-2 17.90

RESISTANCE-1 21.00

RESISTANCE-2 22.00

CLOSE (`CMP) 106.60

SUPPORT-1 103.40

SUPPORT-2 101.80

RESISTANCE-1 111.00

RESISTANCE-2 115.00

52 week-High 109.65

52 week-Low 46.30


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Hero MotoCorp Ltd. CMP - ` 2052.30Technical Outlook & Trading Strategy:-The stock price of Hero Motocorp has given a breakout to its consolidation of past few days. The stock is also takingsupport at cluster of averages. We would like to point out that on the weekly chart the price of Hero motocorp hasgiven pulled back from its inverted head & shoulder n eckline. On the daily chart the stock is also sustaining above itscluster of moving averages. The momentum indicators on weekly chart are in the buying mode.We recommend traders to buy 50% now and again in the range of `2020` 2030 levels with a stop loss placed below`1988.8 levels for targets of `2120/` 2200 levels.

TVS Motor Ltd. CMP`66.40Technical Outlook & Trading Strategy:-The price of Tvs Motor has registered a close above weekly key resistance during the previous session of trade. Theprice of Tvs Motor has also been sustaining above its 8 day mov ing average over the past few sessions of trade whichis also a bullish sign. The momentum indicators are in rising trajectory and are in buy m ode.We recommend traders to Buy 50%now and again in the range of `65 `65.5 levels with a stop loss placed below`64.4 levels for targets of `70/ `72 levels, expected to be achieved in com ing few Sessions.

CLOSE (`CMP) 2052.30

SUPPORT-1 2020.00

SUPPORT-2 1988.80

RESISTANCE-1 2120.00

RESISTANCE-2 2200.00

52 week-High 2237.00

52 week-Low 1375.75

CLOSE (`CMP) 66.40

SUPPORT-1 104.00

SUPPORT-2 102.80

RESISTANCE1 110.00

RESISTANCE2 114.00

52 week-High 87.40

52 week-Low 43.60


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Weekly Update 22 Oct 2011

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