WEEKLY TRADING HIGHLIGHTS & OUTLOOK

01 Oct, 11

S&P CNX NIFTY

OPEN

4878.60

HIGH

5034.45

LOW

4758.85

CLOSE

4943.25

Change(pts)

75.50

Change (%)

1.55%

MARKET OUTLOOK In our previous update, we had suggested a negative bias on the nifty indicating that the nifty could test levels of 4840 /4800 /4750 in near future. The nifty opened at 4878, recorded a low of 4758 (thus meeting our downside targets). The index witnessed a pullback from the lower levels and finally closed at 4943 levels with a gain of 75 points The overall movement of the index is currently in the broader range of 4750- 5200 levels. As long as the index remains in this range we are going to witness choppy and volatile moves in the either direction. Going forward, the next immediate resistance is placed at 5060 levels. A sustained move past this level would see the index rallying to the next level of 5110 /5170-5200 levels. On the downside the index has been taking good support at the 4900 levels for the last few sessions. Hence, these levels should be taken into consideration as crucial support. A close below the 4900 could see the index declining towards the levels of 4830 / 4750 levels.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

01 Oct, 11

BSE - SENSEX
OPEN HIGH 16209.20 16756.10

LOW

15801.00

CLOSE

16453.75

Change(pts)

291.70

Change (%)

1.80%

MARKET OUTLOOK In our previous update, we had suggested a negative bias on the Sensex indicating that the Sensex could test levels of 16070 / 15850 -15800 in near future. The Sensex opened at 16209, recorded a low of 15801 (thus meeting our downside targets). The index witnessed a pullback from the lower levels and finally closed at 16453 levels with a gain of 291points. The overall movement of the index is currently in the broader range of 15800- 17350 levels. As long as the index remains in this range we are going to witness choppy and volatile moves in the either direction. Going forward, the next immediate resistance is placed at 16830 levels. A sustained move past this level would see the index rallying to the next level of 17200 /17350 levels. On the downside the index has been taking good support at the 16300 levels for the last few sessions. Hence, these levels should be taken into consideration as crucial support. A close below the 16300 could see the index declining towards the levels of 16100 / 15800 levels.

Key Levels & Averages

INDEX SENSEX NIFTY BANK-NIFTY Close Support-1 Support-2 Resistance-1 Resistance-2 8 DMA 34 DMA 200 DMA

16453 4943 9468

16300 4900 9407

16100 4830 9280

16750 5060 9675

16900 5170 9970

16522 4967 9553

16808 5050 9752

18626 5591 11041

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

TRADING RECOMMENDATIONS

01 Oct, 11

CLOSE (CMP)

9468.30

SUPPORT-1

9400

SUPPORT-2

9260

RESISTANCE-1

9675

RESISTANCE-2

9970

Bank NIFTY Ltd. CMP 9468.30 Technical Outlook & Trading Strategy:The Share price of bank nifty is still trading in the range of 9200-9970 levels. The immediate support is placed at 9400 levels, below which the index could decline towards the lower end of the range (9260 levels). On the upside the index needs to sustain above the 9675 levels to test its key resistance level of 9970levels.

CLOSE (`CMP) SUPPORT-1

410.55 396.00

SUPPORT-2 RESISTANCE-1

385.00 416.00

RESISTANCE-2 52 week-High

422.00 537.75

52 week-Low

403.00

GAILCMP` 410.55 Technical Outlook & Trading Strategy:The price of GAIL Ltd has been consolidating within broad ranges of `403 to `476.5 levels. But, the key observation to be made is that the price of GAIL Ltd has formed a head and shoulder pattern on the Daily charts. A breakdown from the said pattern would be confirmed when the price breaks below the neckline level of `409 levels. The momentum indicator is also in sell mode. The prices of GAIL Ltd will face severe selling pressure once it starts trading below the neckline level of `409 levels. We recommend traders to sell below `409 with a stop loss placed above `422.1 levels for targets of `392 / `380 levels, expected to be achieved in coming few Sessions.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

01 Oct, 11

CLOSE (`CMP) SUPPORT-1

409.15 402.00

SUPPORT-2

394.40

RESISTANCE-1

430.00

RESISTANCE-2 52 week-High

440.00 528.00

52 week-Low

360.00

HCL Technologies Ltd. CMP - ` 409.15 Technical Outlook & Trading Strategy:The share price movement of HCL Tech from 17 Aug 2011 till date appears to be forming a symmetrical triangle pattern. It should be noted that symmetrical triangle patterns signify accumulation and suggest price advances once the breakout is recorded (at ` 414 for the said pattern). A break above the price level of ` 414 should start an upside movement with possible price targets of ` 440/ ` 455 in a short period of time. The momentum indicators on the daily chart are also in a bullish zone suggesting more upside in the stock. We recommend traders to buy 50% now and again in the range of `402 `406 levels with a stop loss placed below `394.4 levels for targets of `430 `440 levels.
CLOSE (`CMP) SUPPORT-1 71.75 65.00

SUPPORT-2

62.00

RESISTANCE1

76.60

RESISTANCE2

78.80

52 week-High

188.00

52 week-Low

70.90

Reliance Communications Ltd. CMP` 71.75 Technical Outlook & Trading Strategy:The share price of Reliance Communications has closed right at its support level of ` 71.7. This is an important support level. With the price decline over the past few sessions, there are indications that the stock price might violate this support in near future. Traders should look to initiate short positions on a sustained breakdown of ` 71.7 for price targets to levels of ` 65 / ` 62. We recommend all sell positions be protected with a stop placed above ` 76.6. OR Sell `70 Oct call @ cmp6.90 for the targets of `1 and follow a stop at 10.70 levels.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

01 Oct, 11

CLOSE (`CMP) SUPPORT-1

875.40 866

SUPPORT-2

840

RESISTANCE1

892

RESISTANCE2

920

52 week-High

1279.00

52 week-Low

813.90

ICICI Bank Ltd. CMP` 875.40 Technical Outlook & Trading Strategy:The ICICI Bank has seen a sharp fall from highs of `1111 on 4th July 2011 to a lows of ` 813.55 on 26th Aug 2011.The stock has since then pulled back and tended to trade within the 930---813 range. The recent consolidation has formed the shape of a Symmetrical Triangle pattern. Traders should note that symmetrical triangle pattern is a consolidation pattern and the breakout to the either side of the above mentioned pattern would indicates sharp move in the share price of ICICI Bank. We recommend traders to buy closing above `888 -- `892 levels with a stop loss placed below `863.8 levels for targets of `920 `945 levels. OR We also recommend traders to sell on a closing below `868 -- `866 levels with a stop loss placed above `892.6 levels for targets of `840 `810 levels.

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