Nifty update

I am taking this opportunity to present my view on long term nifty chart. On Friday the index has given highest weekly & monthly close to  date. It also made a new all time high of 8617.

As seen in the above chart, nifty has completed 100% extension of the Oct 2008 to Nov 2010 rally if calculated from Dec 2011 low around 8620. So we can say that nifty is likely to top out this month. However this is just a probability based on the Fibonacci extension. There is no other sign signalling that the uptrend is over.

In fact, weekly & daily charts are still showing strong uptrend momentum. Although on weekly chart, nifty has touched the up trending resistance line on Friday, momentum indicator in favor of bulls. If 8630 is protected this week on upside, uptrend is likely to be paused. But the confirmation of beginning of correction will come below 8420. 

Forex update

EURUSD

The  pair looks to be in the consolidating in a price range before starting next move. If it trades above above 1.2____, it can go up to 125600. On the other hand if it trades below 1.2____, it can resume its downtrend towards 1.23000.

Container Corporation ready to blast?

Container Corporation (Concor cmp 1339) is trading in a range for last four months. Its a low volume high volatility stock. Although its trading in a range for last four months, the range is almost Rs. 200 due to high volatility.

On weekly charts, the stock is forming a bullish flag pattern. Close above 1450 will confirm the break out which can take stock to 1600 levels in the short to medium term. So we recommend to buy the stock at cmp 1340 for targets of 1440 & 1600 with a stop below 1270. Long term investors can hold the stock for target of 1800 with a stop below 1200.

Short term double bottom forming in CESC!

CESC ha been in uptrend for last one year. The stock has given more than 100% returns in last one year.. Its 52 week high low stands at 827 & 340 respectively.

After making a high of 827 in September, the stock has corrected significantly upto the levels of 645. The stock has bounced from the levels of 645 twice in last 10 trading sessions to form a short term double bottom. Its neckline stands around 693. Its most likely that the stock would go further up break out of the pattern. Declining volumes on correction & rising volumes on accumulation also supporting the view. So we recommend going long in the stock if it closes above 694 for targets of 740 & 770 with stop below 670 on closing basis. 

Arvind looks good for going long!

Arvind (cmp 300) has been the outperforming stock in broader market in last one year. The stock has given returns of 200% in lat one year. Recently the stock corrected almost 80 points from its high of 341 & completed 61.8% retracement of  last up move after sideways correction in July.

It looks like the stock has made a short term bottom near 265 & ready to go further upwards to new highs above its high of 341. So we recommend going long in the stock at cmp for targets of 323 & 352 with stop below 285.