WEEKLY REVIEW WEEK 22 31 MAY 2013
NIFTY OVERVIEW What has changed from last week to the current week is that USDINR has surged up strongly. And that is a concern. In last one month it has moved up by close to 4.5%. Technically, previous week was a bearish engulfing candle, which suggests bearish reversal. On the daily charts, the momentum has turned weak. So caution is advised. The outcome of GDP will be watched out for by the traders. However, in the near term if USDINR rises further, it could result in pulling out of some liquidity from the markets. Nifty has supports at 5960-5850 and on the upside resistance lies at 6150-6170 in the short term. Daily Candle Chart of Nifty (Futures) 2
BANK NIFTY OVERVIEW Technically, Bank Nifty has made double tops around 13340 levels and post that on the weekly charts, it has given a bearish engulfing candlestick pattern. This is suggests bearish reversal. In the coming days, we could see either some sideways movement in bank nifty if private banks continue to hold higher or else there could be profit booking here. Again volatility can be expected here depending on the outcome of GDP. Weekly Candle Chart of Bank Nifty (futures) 3
STOCKS IN FOCUS ASHOK LEYLAND LTD BSE Code:500477 NSE Symbol: ASHOKLEY P/E :38.65 ISIN Demat:INE208A01029 Div & Yield %:4.10 EPS :0.63 Book Value:11.87 Market Cap (Rs Cr.):6478.80 Face Value :1 Recommendation : BUY Last Close : 24.35 Targets : 26-28 Stop loss: 22.50 (closing basis) Ashok Leyland has moved sideways for last few months and now the stock is showing a rounding bottom formation. The momentum indicators are suggesting divergence, which is positive for the stock. The stock is a buy for the targets of 26-28 and stop loss of 22.50 on closing basis. 4
STOCKS IN FOCUS WELSPUN CORP LTD BSE Code:532144 NSE Symbol: WELCORP P/E :9.75 ISIN Demat:INE191B01025 Div & Yield %:0.87 EPS :5.09 Book Value:166.72 Market Cap (Rs Cr.):1305.49 Face Value :5 Recommendation : BUY Last Close : 49.70 Targets : 55-62 Stop loss: 43 (closing basis) Welspun has made multiple bottoms at around 43-45 range. This could be a long term base formation for the stock and we could see some the stock surprising on the upside from here. Recently the stock has given a bullish engulfing candlestick pattern on the daily charts along with sudden jump volumes. Such action near bottoms suggests accumulation in the stock. The stock is a buy for the targets of 55-62 and stop loss of 43 on closing basis. 5
STOCKS IN FOCUS MRF LTD BSE Code:500290 NSE Symbol: MRF P/E :9.09 ISIN Demat:INE883A01011 Div & Yield %:0.16 EPS :1651.3 Book Value:6740.09 Market Cap (Rs Cr.):6366.12 Face Value :10 Recommendation : SELL BELOW 14870 Last Close : 15018 Targets : 14400-13500 Stop loss: 15425 (closing basis) MRF has seen a strong rise over the last few years. However, now the stock is facing loss of momentum on the higher levels. On the daily charts, the stock has given bearish engulfing candlestick pattern, which suggests weakness from here. The stock is a sell ONLY below 14870 for the targets of 14400-13500 and stop loss of 15425 on closing basis. 6
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