Weekly Update 17th Dec 2011

8/3/2019 Weekly Update 17th Dec 2011

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WEEKLY TRADING HIGHLIGHTS & OUTLOOK 17 Dec ,

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MARK ET OUTLOOK

The NIFTY opened the week on a tentative note and registered an intraweek high

of 4910. Thereafter the index spent the rest of the week in the negative territoryand the selling pressure increased as the week progressed. The index registered an

intraweek low of 4628 levels and finally closed the session at the 4651 levels with a

loss of 183 points.

The most important observation is that the index has registered a breakdown from

its critical support level of 4700 (as shown in the chart above). This breakdown

suggests that the index is likely to decline towards the level of 4530 - 4470 / 4300.

The violation of the multiple support levels of 4700 opens up the downside targets

of 4000 levels over the medium term time. Investors should be extremely cautious

of taking long positions in the market or its components at current levels.

Any up move from the current level is likely to face stiff resistance around the

4700-4750 followed by the 4920 levels.

S&P CNX NIFTY

OPEN 4906.85

HIGH 4910.25

LOW 4628.20

CLOSE 4651.60

Change(pts) -183.45

Change (%) -4.42




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MARK ET OUTLOOK

The SENSEX opened the week on a tentative note and registered an intraweek high

of 16360. Thereafter the index spent the rest of the week in the negative territory

and the selling pressure increased as the week progressed. The index registered an

intraweek low of 15425 levels and finally closed the session at the 15491 levels

with a loss of 722 points.

The most important observation is that the index has registered a breakdown fromits critical support level of 15750 (as shown in the chart above). This breakdown

suggests that the index is likely to decline towards the level of 15250 -1500 /14500.

The violation of the multiple support levels of 15750 opens up the downside

targets of 13500 levels over the medium term time. Investors should be extremely

cautious of taking long positions in the market or its components at current levels.

Any up move from the current level is likely to face stiff resistance around the

15750-16000 followed by the 16400 levels.

Key Leve ls & Averages

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

SENSEX 15962 15250 15000 15750 16000 15962 16400 17700

NIFTY 4651 4530 4470 4700 4800 4788 4922 5316BANK-NIFTY 8171 8000 7880 8268 8400 8552 8937 10317

BSE - SENSEX

OPEN 16354.95

HIGH 16360.30

LOW 15425.00

CLOSE 15491.35

Change(pts) -704.55

Change (%) -4.45




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TRADING RECOMMENDATIONS

Ashok Leyland Limited CMP - ` 23 .05

Technical Outlook & Trading Strategy:-

The most important thing to be observed in the price chart of Ashok Leyland is that the share price has given

breakdown after tr ading in consolidation m ode for over eight m onths in the range of ` 23.50- `28 levels. The share

price has now registered close below a new 52 w eek low. We expect th e share price to slide further t o the levels of

` 20.60 / ` 18 in the medium term.

From a t rading perspective, we recomm end selling at current levels with a stop loss placed above24.40. We expect

the share price to decline for targets of `21 / ` 20 levels in the short t erm.

Bajaj Auto Limited CMP— ` 1660 .00


The stock price of Bajaj Auto has been taking support at the rising trend line and tr ading in a contracting channel. It

has been noticed that the momentum in the stock price is fading and the stock price is no longer making higher

tops. The mom entum ind icators rolling in the negative would add to t he negative bias.

However, traders can consider opening a short trade only on a break below`1630 with a stop loss placed above

1701 for targets of `1590 / ` 1550 / 1505

CLOSE (` CMP) 23.05

SUPPORT-1 22.10

SUPPORT-2 21.60

RESISTANCE-1 23.60

RESISTANCE-2 24.20

52 week-High 71.20

52 week-Low 22.53

CLOSE (` CMP) 1660.00

SUPPORT-1 1630.00

SUPPORT-2 1590.00

RESISTANCE-1 1700.00

RESISTANCE-2 1732.00

52 week-High 1823.55

52 week-Low 1165.65




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Cairn India Limited CMP—` 298.80


The share price of Cairn Ind. appears to have br oken down f rom it s rising tr end line support. Such a breakdown is

likely to have negative implications for t he stock price. . Also This breakout on Friday’s session was backed by rise

in trading volumes crossing the average of past 10 day’s trading volumes. We expect strong declines to occur in

the next 2 – 3 weeks and believe that the technical set up suggests that the stock price could test support levels

placed at ` 286 / `266 . The mom entum indicators remain in sell mode indicating weakness.

Short positions can be initiated at current price and on pullbacks to levels of ` 300--`302 with a stop loss placed

above ` 310.60 for the above mentioned targets.

Dr. Reddy 's Laboratories Limited CMP—` 1598.00


The share price of Dr. Reddy's Laboratories Limited has been t rading sideways for past few sessions. Currently the

stock is trading above its cluster of moving averages and trading near mult iple support t rend line on the daily chart.

The momentum indicator is in a rising mode, indicating stock to head towards its resistance trend line placed at

`1650 levels.

We recomm end a buy only above `1650 w ith a stop loss placed below the level of ` 1598 f or the target s of ` 1730 /

`1765 / ` 1800 levels.

CLOSE (` CMP) 298.80

SUPPORT-1 290.00

SUPPORT-2 270.00

RESISTANCE1 308.00

RESISTANCE2 316.00

52 week-High 372.35

52 week-Low 249.30

CLOSE (` CMP) 1598.00

SUPPORT-1 1552.00

SUPPORT-2 1518.00

RESISTANCE1 1665.00

RESISTANCE2 1710.00

52 week-High 1838.65

52 week-Low 1386.10




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Disc laimer

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Weekly Update 17th Dec 2011

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