After a Gap of 2 years….

Indian market remained very volatile since last 2 years. Some lost some gained heavily.

For the first time since Jan 2008, markets have given positive breakout signal above 5400 levels. But at the end of the week Nifty closed marginally below the 5400 mark.

So finally the Indian Rupee has also got its own identity. The rupee joined a select band of currencies such as the US dollar, Pound, Sterling, Euro and the Yen that have their own symbols.

In my last article I had mentioned that the markets are looking strong to me and that proved to be true. Nifty in a week closed above 5400 levels despite of profit booking by Local MF’s and Insurance. MF & Ins are being booking profits in many frontline stocks, but the markets are eyeing higher levels.

In the current week Indian brousers surged almost 0.7%. But Midcap and Small cap stocks performed better than the other major Indices. Small cap Index was up almost 2% and Midcap 1%. Frontline stocks that helped Index rally were TCS 8%, Tata Motor 8%, Axis Bank 7%. But there were some losers also. Like Infosys, Maruti and Bharti shrinked the rally by losing nearly 3.5% each. In the major looser was MNM which dropped 5.5%. Reality index was up almost 6%, Unitech 9%, DLF 8%, TCS 8%. Banking stocks too performed well in the current week. Bank nifty gained 3%. Capital Goods Index was up 2.5% whiled Oil Index lost almost 1% after a sharp rally seen in the last week. Deregulation of Diesel prices marked the correction in the Oil marketing stocks. Bpcl lost almost7 %, Gail 6.5%.

In the mid cap and the small cap stocks landmark Property rallied the most by gaining 70 in a week, followed by Onward tech 28%. In the Eduucation stocks Educomp surged 15%. DCB was up 9%, HDIL 6&, Hind motors 11%, Rallis 10%.

TCS surged 6.6%, reacted to better-than-expected Q1FY11 numbers. It reported net profit was at Rs 1,844 crore and net sales were at Rs 8,217 crore as against expected net profit at Rs 1784.39 crore and revenues at Rs 8079.6 crore.

Technically speaking, if we check in the line chart of Nifty we clearly see that the Nifty has given clearly indication of breakout through the inverted Head and Shoulder pattern. In the last weeks article also I had mentioned that the Nifty weekly chart is showing good strength and breakout.

As mentioned in the earlier article also that Nifty is taking good support at its 20DMA, and this week bounced back from the same levels and closed marginally below the 5400 levels. Nifty if closes above the 5400 levels, may take the Index to higher levels. Nifty will face resistance at 5428-5477-5549 levels.

FII’s remained net buyers to the tune of Rs.2700 Cr. While DII’s continue to book profits with Net selling of Rs. Rs1860 Cr ( till Thursday ).

Markets are still bullish and will continue to remain till 5600.

Last Weeks close:-

BUY Axis bank above 1280 SL 1262. Made a high of 1368 in the week.

BUY Maruti above 1431. Did not trigger the price.

This Weeks call:-

Buy United Spirits above

Sell Ambuja Cement with SL of 110.

BUY BOB with SL of 717.5.

BUY Drreddy close above 1497.