Sun: 24th July

There has been very little to about the Indian markets this week. After a volatile session Nifty gained mere 0.9% while Sensex closed with a gain of 0.8% only. Once again Nifty closed above 5600 levels after making a low of 5532 Nifty once again gained on the last day of the week and some how managed itself to close above 5600 levels.

But Midcap and the Small caps were the flavor of the week. Praj ind gained nearly 26%. Petronet lng gained 20% after the announcement of its Quarterly result. Gspl rose nearly 16%. Ruby Mills was the major gainers in the small cap stocks which gained more than 45%, Sterling hotels closed above with a gain of 38% while Kothari Produts gained 30%.

There were some gainers in the Frontline stocks also. Gail and Bharti were the gainers with 4.5% higher closed then its previous close. Infosys gained nearly 4.4% which helped the IT Index close higher by 1.2%. Tata Power closed higher by 3.8% while Sterlite by 3.7%. Allahbad Bank gained 4.5% and Yes bank 3.2%. Pfous was another gainers in the midcap stocks which closed higher by 7.5%/.

On the losers side Tata motors lost 3.6%, Ntpc closed down 3.5%. rally in the Telecom stocks on the last day of the week could not help Rcom stocks to recover its lost glory and it closed down 2.5% while most of the telecom stocks gained more that 4-5% on the last day of the week. Wipro was the only looser in the IT stocks which closed down by 2.16%.

Nifty after its recovery from its Head and Shoulder Pattern is still not sure of the way to go in. FII and DII activities have been very less in the India markets. Indices gained mere 1% in a week. In the chart we can clearly see that the after the recovery from the Head and Shoulder pattern, a similar kind of pattern is in the formation, but an inverted one. Yes an Inverted Head and Shoulder pattern is under formation. But the breakout above 5740 will only confirm the same. In the chart we can clearly see that the Nifty took support at its 50DMA and closed at 5634 levels. In the chart it is also noticed that Nifty took support at its 50% retracement levels and bounced back.

Nifty close below the 5532 levels could take the Nifty to 5400 levels and close above the 5740 levels will take the Nifty to 5800-5850 levels. At the higher side there is wide opening but the nervousness is still there in the markets as there are very few people interested in trading.

This weeks call

Buy Rel Cap above 610 SL 605.

Buy Lnt above 1830 SL 1823.

Buy Yes Bank above 330 SL 326.

Buy Bajaj Auto above 1451 SL 1443.