WEEKLY TRADING HIGHLIGHTS & OUTLOOK

08 Oct, 11

S&P CNX NIFTY

OPEN

4874.40

HIGH

4922.60

LOW

4728.30

CLOSE

4888.05

Change(pts)

55.20

Change (%)

1.22 %

MARKET OUTLOOK The NIFTY opened the week on negative note on back of weak global cues. The nifty recorded an intra week low of 4728, before staging a strong comeback to move up to a high of 4922 levels. The nifty eventually closed at 4888 with gain of 55 points. The Index has taken strong support & seems to be making a double bottom at 4720 levels .On the weekly chart it has shown a reversal bar at this level, suggesting that the bottom is in place. Going forward the nifty now needs to sustain above 4920 levels, which would give strength and a possible test of levels of 4980 / 5025 /5060 /5130levels in the near term. Any pullback from the current level is likely to garner support at the levels of 4825 /4800 levels which should be considered as an opportunity to create fresh longs. Hence for the short term the 4720-4750 levels would provide a good support and only a weekly close below this level would be negative.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

08 Oct, 11

BSE - SENSEX
OPEN HIGH 16255.95 16347.50

LOW CLOSE

15745.45 16232.55

Change(pts) Change (%)

221.20 1.80%

MARKET OUTLOOK The SENSEX opened the week on negative note on back of weak global cues. The SENSEX recorded an intra week low of 15745, before staging a strong comeback to move up to a high of 16347 levels. The SENSEX eventually closed at 16232 with gain of 221 points. The Index has taken strong support & seems to be making a double bottom at 15750 levels .On the weekly chart it has shown a reversal bar at this level, suggesting that the bottom is in place. Going forward the nifty now needs to sustain above 16400 levels, which would give strength and a possible test of levels of 16650-16700 /16850 /17000 levels in the near term. Any pullback from the current level is likely to garner support at the levels of 16000 levels which should be considered as an opportunity to create fresh longs. Hence for the short term the 15750 levels would provide a good support and only a weekly close below this level would be negative.

Key Levels & Averages

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

16232 4888 9038

16000 4825 8920

15750 4750 8850

16400 4920 9120

16650 4980 9240

16194 4967 9167

16648 5050 9585

18298 5591 10718

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

TRADING RECOMMENDATIONS

08 Oct, 11

CLOSE (CMP)

116.40

SUPPORT-1

114.00

SUPPORT-2

111.80

RESISTANCE-1

122.00

RESISTANCE-2

130.00

Infrastructure Development Finance Company (IDFC) Ltd. CMP 116.40 Technical Outlook & Trading Strategy:The share price of IDFC has seen a sharp fall from the highs of `145 on 25th July 2011 to the lows of `103.25 Levels. The stock has since then pulled back and tended to trade within the ` 103.25---` 116 range. On the daily chart the stock has managed to close above its cluster of moving averages. The momentum indicator on the daily chart is also in a bullish zone suggesting more upside in the stock. We recommend traders to buy 50% now and again on dips up to `113` 114 levels with a stop loss placed below `111.8 levels for targets of `122 `130levels.
CLOSE (`CMP) SUPPORT-1 325.05 318.00

SUPPORT-2 RESISTANCE-1

313.40 338.00

RESISTANCE-2 52 week-High

350.00 586.00

52 week-Low

309.45

Bharat Heavy Electricals CMP` 325.05 Technical Outlook & Trading Strategy:BHEL has seen a sharp fall from a high of `405 on 26th July 2011 to a low of ` 309.45 on 5th Oct 2011. On the weekly chart the stock was trading at its crucial support zone. On the closing basis the stock has closed above that support level and formed a Hammer Candlestick Pattern. Traders should note that a Hammer candlestick formation is a significant bullish reversal candlestick pattern suggesting more upside for the stock. On the daily chart the stock has also closed above its near term moving average. The momentum indicator on the daily chart is also in a bullish zone. We recommend traders to buy 50% now and again on dips up to `318320levels with a stop loss placed below `313.4 levels for targets of `338 `350levels.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

08 Oct, 11

CLOSE (`CMP) SUPPORT-1

159.15 154.80

SUPPORT-2

151.00

RESISTANCE-1

168.00

RESISTANCE-2 52 week-High

176.00 276.40

52 week-Low

137.55

Tata Motors Ltd. CMP - ` 159.15 Technical Outlook & Trading Strategy: The share price movement of Tata Motors from 13 Sept 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 ` 160.5 for the said pattern). A break above the price level of ` 160.5 should start an upside movement with possible price targets of ` 168/ ` 176 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. The stock is also sustaining above its cluster of moving averages adding weight to the Bullish argument. We recommend traders to buy above `160.5levels with a stop loss placed below `154.8 levels for targets of `168 `176 levels
CLOSE (`CMP) SUPPORT-1 576.80 540.00

SUPPORT-2

525.00

RESISTANCE1

587.00

RESISTANCE2

601.60

52 week-High

898.95

52 week-Low

555.55

Shriram Transport Finance Company Ltd. CMP` 576.80 Technical Outlook & Trading Strategy:Shriram Transport has witnessed heavy selling pressure on Fridays session of trade. The price of Shriram Transport also fell on the back of strong volumes. The `587 levels was the crucial support for the price of Shriram Transport. But now a break below this level has opened up downside targets of `540 / `525levels. The momentum indicators are also in sell mode and the price of Shriram Transport have been closing below its key moving averages cluster since the past few sessions of trade. We recommend traders to sell in the range of `574 `580 levels with a stop loss placed above `601.6 levels for targets of `540 `525 levels, expected to be achieved in coming few Sessions.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

08 Oct, 11

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