Nifty crosses resistance... Will it sustain??

Nifty has managed not only to cross and close above it resistance line but also the 3 months average price. This was being tested for quiet some time in the last few days.

More positive triggeres for market to continue this rally... crude near 118$ and below that would be good for further fall. All global markets are positive.

As mentioned earlier above 4520 we can buy alot of stocks and hold for short term.

If nifty reverses from here we could see major selling and stocks getting beaten up. So safe to use stop loss for all trades.

View and stocks for the coming week starting 4th August

Nifty for the second time in last few days has closed near the upper trend line. Now sustaining above 4443 we could expect some upside and close above 4520 could lead to a new rally. So safe to enter stocks and nifty the day it close above 4520 levels.

Again a reversal from here would mean 4200-4000 and alot of beating in stocks which had left gaps. But it would continue as a range bound market for some more time and could break on either side again. I personally feel that breaking 4000 would not be possible as of now.

With the IAEA approving the nuclear deal and power sector reforms announced with just 17ooo crores, we would see a strong monday. Power stocks should be the focus still. Kalpataru power, NTPC, Areva, Walchand nagar, Power grid, PTC...

Balrampur chinni cmp 89. All moving averages converged and has broken all. Expect rally to continue upto 92-96 and may be 103 also. Close above 104 would see previous high. Should exit if closes below 84. This year there is a 40 m tonn shortage of sugar which may continue till december. With the festiv season on the head in coming weeks sugar consumption increases and also the prices and the 3rd and 4th quarter results of sugar companies are generally good.


Religare enterprises is still on my watch out list. Amazing accumulation happening. I love these kind of stocks because when they break out the returns are fantastic. Initially i was expecting 10-15% in this script on break out, but as days are passing I feel i would hold it for much longer. Either some thing positive is cooking in this sector or this company. So watch out for movement in this company or just accumulate and wait.
Edilweiss capital and india info line also would give break out soon. Indiainfo line buy above 720 SL 707 Target 740-766



Ambuja cements forming an inverted head and shoulder. Watch out and on confirmations buy for 88-93-97-102. Exit if closes below 81. Enter only above 86.
Other Cement stocks have not really shown strength but the results of India cement is fantastic and we could expect other companies also so show decent returns.

If market remains in positive trend then track the list of stocks mentioned below and enter above the levels mentioned and use stoploss in case market reverses or stop loss gets hit. Sensex above 15100 needs to sustain and close above it. If not we could again see a reversal. So over all be careful, use stop loss and regulate your volumes.

Buy DLF above 530 stop loss 520 Target 550-565-600
Buy Escorts cmp 86 Stoploss 83 target 92-96
Buy Everest kanto cmp 312 stoploss 303 Target 340-360
Federal bank above 206 Target 212-218-224 SL 202
Indiainfo line buy above 720 SL 707 Target 740-766
Ispat ind buy above 29 Target 33-35 SL 27.50
JP HYDRO Target 65 sl 54 cmp 56
Jet Air cmp 501 Target 540 SL 490
Mangalore chem & Fert cmp 22.80 Target 25-27-30 SL 21
Nagarjuna fert above 41.60 Target 45 sl 40.80
Parsvnath above 119 Target 124-133 SL 116
Praj Ind above 193 Target 196-202-206 SL 190
Punj LLoyd cmp 281 Target 310-315 SL 276

It is not necessary you trade all the time. Trade when the levels meet and you are confident. In case of any doubt its always better not to trade.