Trend Changer: Has Nifty Hammered A Near-term Bottom?

Firstly, to inform the readers over here that this post and the discussion of the chart pattern herein pertains only to the 'Near term' trend of the market. The Candle stick chart pattern as depicted in the below attached chart relates to a 'Trend Reversal' Pattern which could signify either a reversal in the prevailing down trend or simply a trend bottom/changer.

Nifty has been in a short-term down trend after witnessing stiff Resistance around 5280 level. The 5 day short term RSI has climbed down from 70 to 15 during the downward journey of markets, yet another hint of market in over-sold zone in near term horizon.

Charts Courtesy: www.icharts.in



Hammering Out A Bottom

Investopedia.com defines a Hammer as, "A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick."

It further adds, "A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom.The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening."

A Hammer is a Bottom Reversal Pattern. The rationale behind the analysis and logic of this pattern formulation is explained as under:

1) The market is in a pronounced downtrend.
2) A candle stick with small real body but a large lower shadow appears at the end of the downtrend indicating some sort of reversal in prevailing downtrend.
3) The bulls took charge of the situation after bears tested the lower waters but could not sustain/hold their short positions with conviction.
4) Taking note of the situation, the bulls took the lead from the front and closed near the day's high with little or no shadow at all.
5) The primary idea from here is that further downward slide could come for a halt atleast for very near term & at best- a trend reversal towards up side could be seen.
6) In very near term, bears can recoup the control over markets only if the lows tested on the hammer forming day is breached.

The pattern is typically characterized by a long lower shadow with a small real body on the top. The color of the real body (white or red) is not of greater significance while studying the pattern. However, a white body gets a first preference as it signifies that markets sold off as a last leg of the near term down trend and bulls were good enough to bounce back to ensure that markets closed near to the highs of the session. The waters at the lower levels were tested and found good enough for a reversal. The pattern signifies that bulls are eager to gain some lost ground in days to come.

Another study that goes into the Hammer pattern is that the lower shadow should be at least twice the size of the small real body on the top. It signifies that bulls attempted a significant come back from the lows to prove it's dominance. However, even without the fulfillment of above condition a Hammer is a hammer, but its effectiveness could be questionable and uncertain. A smaller real body coupled with longer lower shadow will give the hammer a more complete look and meaning. After all, the chart patterns are nothing but the mirror image of a trader/investor's psychology and their collective action put on paper.

Further, it is desirable for traders who want to bet on this reversal chart pattern to confirm the effectiveness of this bullish hammer pattern by checking the follow-up chart signals (of next 2-3 sessions) in look-out for bullish White Candles or even bullish Continuation patterns.


Nifty & Hammer

On January 29, 2009, Nifty established a low at 4765 and from there on bounced back to close at 4880, a little above the day's opening at 4825. This led to emergence of a small real body with a long lower shadow and a very minute upper shadow. Add to it, on the preceding day of witnessing the hammer pattern, the Nifty witnessed a 'Doji' day which is also a trend reversal signal indicating an equal tug-of-war between the bulls and the bears. A Doji followed by a Hammer could be hinting towards a dissipation of prior (short term down trend) trend's force possibly with a last attempt to test lower waters on a Hammering day. Hence, a doji followed by a hammer pattern is a stronger clue of trend change, in direction of the original bullish trend.

Further, if Nifty closes below the low hammered by Nifty at 4765 on January 29, the analysis and prediction of the bullish reversal pattern can be termed as failed/void and could act as a significant stop loss level for Traders.

Note: Quite often, it may also happen that the reversal patterns may play out well in the near term, but the effectiveness of the trend fizzles out eventually over medium term horizon. So, it is necessary to check and update the view in light of changing market times and environment periodically. Like, for example, a bullish reversal pattern in 'Hammer' ensures that markets move up. But, over a period of time, markets may develop yet another reversal pattern but this time in bearish bias in form of a 'Hanging-Man' pattern which signifies a Top, eventually pulling the markets down. So, it is necessary to review chart patterns in the light of passage of time and development of various chart patterns.

Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any kind/nature for your trading and investment decisions and its consequent results.

Swinging with RSI Momentum Indicator

Often Technical indicators are used as a guide or to predict the future course of action of equity markets, especially short-term market movement. Usually the use of technical indicators over a short term period involves studying demand-supply indicators irrespective of fundamental aspects of the market or a stock. Though it is not advisable to predict markets based on any particular technical indicators but a combination of indicators to arrive at any type of concrete decision of the market's next price direction.
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Short Term Momentum with RSI

However, in this post we shall try to focus on predicting the very near-term (next 5-15 sessions)market movement for the markets in general. For this purpose, we will use one of the most widely tracked technical momentum indicator for determining the relative strength of the market - the Relative Strength Indicator (RSI).

RSI as defined by Investopedia.com is, "A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset."

It further elaborates on the working of RSI as, "The RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued. "


Charts Courtesy: www.icharts.in



From the above attached Daily Nifty Charts with range of last 3 months, I have used RSI 5 to determine over-bought & over-sold position of markets for next 5-15 sessions.

1) RSI below 30 around July: As can be seen from the charts, the benchmark index Nifty got over sold during the 10 days prior to and post July 2009, leading to short-term revival in the index immediately for next few sessions.

2) RSI above 70 in July End: During the last 2 weeks of the July 2009, Nifty went into over-bought territory. However, Nifty did not witness any sharp correction but went for small-time consolidation at lower levels for 2 times only to bounce back in the over-bought territory.

3) RSI support at 30 in August: However, the correction of over-bought phenomenon in the latter half of July was inevitable which was witnessed in first half of August 2009. Nifty took strong support at 4400 levels in the first half of August.

4) RSI above 70 in Sept: Again markets have bounced back in the over-bought territory in the September first half.

Based on the above evidences from history of short-term price movements, we can conclude that sooner or later Nifty has to consolidate or correct in order to ensure in line movement with a 'likely' retract in RSI at lower levels in future.


Future Possibilities:

(A) Stretched-Out Pattern: RSI stays above 70 for some more time and Nifty remains over-bought for few more sessions. This possibility could see Nifty testing higher grounds like 4900-4950. On RSI indicator, this would reflect as 'stretching zone' for markets above RSI 70 mark. But, after a certain point, Nifty has to retract to lower range of 4780-4840 levels for consolidation or may be even deeper for correction up to 4680-4740.

(B) Zig-Zag Pattern: The other possibility could be Nifty immediately takes a small 'U' Turn for consolidation below RSI 70 for a week or so. The support area could be 4680-4740 mark for Nifty at such times. But, later, Nifty could again bounce back above RSI 70 mark to head towards higher levels (like the RSI pattern witnessed in last half of July 2009).

(C) Pronounced Correction: Third possibility for Nifty could be that the RSI opts to retract back to 50 mark where it may find Support. This move back for the RSI to 50 could drag Nifty substantially lower at around 4570-4640 range over a period of 10-20 days. Nifty 4570 is a strong support zone for Nifty.

Caution: RSI is 'not' the only technical indicator that determines the movement in any asset class. It is just one of the few indicators which can be more fruitfully utilised in integration with other technical momentum indicators. So, do not build your wholesome judgement or decision based exclusively on above thoughts related with market momentum based on RSI swings.

Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any kind/nature for your trading and investment decisions and its consequent results.

Market Review: Nifty Analysis

Markets Nearing Trend Deciding Zone

Chart Courtesy: www.icharts.in

Sturdy 4570 levels

Nifty closes the week at 4680 on a positive note aided by revival in Chinese markets during the last session of this trading week. Currently, Nifty seems to be in a narrow trading range of 4570 to 4750 levels. It is significant to mention over here that the Nifty took support at 4570 level for 4 times during last 10 sessions, clearly confirming the view that these are the levels to be watched out for the downside support for short term traders.

Crucial 4350-4400 Zone

Over medium term basis, Nifty could be broadly trading in 4350 to 4750 range. The significance of Nifty 4350 to 4400 comes from the fact that markets took downside support for 8 times during mid August 2009. This forms as a crucial levels to be watched out for bulls, below which it would be advisable to play safe and exit or book partial profits. Below 4350 levels, bears are expected to take control of the situation for some time to come once the levels are taken out on the downside.

Resistant 4750 Zone

Nifty 4730-4750 continues to act as a strong Resistance for the markets to cross over. Above 4750, a quick burst to 4800-4850 can't be ruled out. If global markets stay sound & steady with upward bias for some more time, it wont be much before we see bulls crossing this crucial indicator at 4750 mark.

Summary
1) Below 4570: Short term Traders be Cautious on Long Positions
2) Below 4350: Book Partial Profits / Exit Partial Longs
3) Above 4750: Hold Trading / Investment Positions

Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any kind/nature for your trading and investment decisions and its consequent results.

Correction: A Cool-off to Say the Least

Twice Tested, Much Stronger!! -
The Resistence at Nifty 4750.

We have witnessed a strong resistance in Nifty at around 4725. The journey from nifty 3900 to 4700 was as exciting as one could imagine with almost a one-way ride in the upward direction. Nifty 4700 were the levels which were tested during Mid-June 2009 only to form a top for that month. Those levels are back to hound the market in form of stiff resistance to surpass. So, until this crucial zone of 4700-4750 gets taken out on the upside, it would be safe to assume that the Nifty broad range remains 3900 to 4750, a steady 800 point range. A narrow range could be spelled in between 4250 to 4750 range or 4400 to 4750 range, whichever stands the test of time.

Once again Nifty succumbed after testing 4730 during the first week of August 2009. On the downside, many important levels have come and gone. But, as of now, it would be safe to presume that the 'uptrend' is intact and this could just be a correction before next trending move. Markets have reversed from Nifty 3900 to 4700 without a breather. So, as of today, we can conclude that markets are in a short correction mode. Support for Nifty could be sought at 4400 or even 4250 on the lower side. Traders can buy around 4400-4450 with Stop Loss of 4380 with a probable target of 4650-4700 again. However, formally, if there is a tradeable call from my side, I will post it on blog as was done during previous week. Below 4380, another 100 point crack-down on Nifty can't be ruled out.

What could be the Chances of Revival Again?

We can again test 4700 after some bit of consolidation at lower levels. Support lies around 4250-4400, which ever stands the test of time.The broad range continues to be Nifty 3900-4700. Below Nifty 4250, the consolidation and waiting time could be for an extended period & may be even questions could be raised on the existence of current market uptrend if such crucial level is breached on the downside.

Can we again cross 4750? Quite possibly, we could go to 4900-5200 zone before this phase of exuberance come to a halt. Markets have a tendency to top-out when there is excess euphoria in the system and it succeeds in inducing investors to take an entry at higher levels when every thing is looking gung-ho and optimistic.

This is the way markets usually work: on the downside, weak hands are induced to lighten up their positions based on news and rumours of pessimism. This stock gradually moves in the hand of big people; the mentality that gets worked over at this stage is 'Fear'. Similarly, at the exuberant and higher levels, weaker hands take an entry at higher levels, when everything is looking optimistic. At such times, strong hands loosen their positions only to be dumped with weaker section of the system. The factor that works out at this stage is 'Greed' which induces investors to take entry at higher levels.

However, it is too soon to think about such higher levels as Nifty 4900-5200 zone, unless we cross 4750. But, I have a feeling that 4700 will come for yet another testing in near future. Markets will decide for itself whether Nifty 4750 needs to be taken out on the higher side or not, but before that: a Re-test of 4700 is more imminent prior to a big trending move either on the upside on downside. Well, markets could as well prove me wrong.

Money Making with Nifty

During the previous week, on this blog, Two Carry Forward Position were recommended in Nifty. One as a Trend player and one as a Hedge against the same. We cheerfully ended the Net position with smart gains as follows:

Date: July 29, 2009

Nifty Trading (Positional):
Sell in 4500-4550 zone
Stop Loss 4620 (Must have)
Targets 4425-4380

Date: July 30, 2009

COUNTER NIFTY POSITION
Buy in 4520-4540 Range
Stop Loss of 4470
Target 4650-4700

This Nifty view is opposite to the one mentioned above on July 29. One call will get stopped out and other will run at Profits in the direction of next trending move for the markets.

Date: August 03, 2009

NIFTY PROFITS BOOKED
SL trigerred in the Nifty Sell call dated July 29 at 4620 & Profits booked in Nifty Buy call dated July 30 at 4700.

Loss: 4620 - 4550 = 70 points
Profit: 4700 - 4540 = 160 points.
Net Profit: 160 - 70 = 90 points.

If you would dealt in Minifty, your profits should be 90 points x 20 units = Rs.1800/-If you would have dealt in Full Nifty, your profits should be 90 points x 50 units = Rs.4500/-

Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any kind/nature for your trading and investment decisions and its consequent results.

The Melting Point... Nifty Corrects Further

Treading on a Thin Rope.

Nifty back to 4000 levels. It went almost 30 points below 4000 during the last hour of trade on July 10, but got averaged out a trifle above 4000 in last 10 minutes of adjustment period. On Thursday (July 9), Nifty made a futile attempt to cross 4105-4125 zone for multiple number of times only to end lower and in the process not witnessing that crucial cross over.

Again coming back to July 10, Nifty made last attempt to cross 4125 during the first half of the trade, but all in vain - it didn't manage to cross the crucial hurdle of 4125. Thus, nifty made level testing of 4125 levels twice in last 2 trading session only to end lower. This provided enough indication that Nifty (read Markets) was witnessing a constant supply of paper at lower levels, unwilling to wait even for a minor bounce back.

What Next ??

As mentioned in my previous post, Nifty seems slated to test 3800 levels in short-term horizon. The journey from Nifty 4000 to 3800 need not necessarily be as swift and fast as we witnessed from Nifty 4400 to 4000. But, quite possibly, we could see some consolidation in between 3900-4250 (perhaps even 3900-4125), before moving forward to attaining Nifty 3800 or even sub-3800 levels.

When Should Investors Start Buying ?

Investors were alerted (in the previous post) as to not to indulge in catching the falling knife when Nifty breached an all-important 4250 levels. However, they can indulge in small quantity accumulation in Nifty 3900-4000 range, preferably as nearer to Nifty 3900 levels as possible. Presuming that Nifty might take some support at 3800-3850 levels, investors can accumulate in small quantity below 3950 levels. The second tranche of buying to be done around Nifty 3600-3700 zone.

A point for Investors to note is that even if they don't get the opportunity to accumulate their favourite stocks around Nifty 3900 levels in very near-term, they could rest assured that for any substantial upturn to occur Nifty has to cross 3 significant Resistances situated around 4125, 4250 and 4400 levels. Also, the upward ride to cross all these 3 resistance would not be a unilateral rise and it would be a slow, wacky and a consolidating move.

Yawning Gap

But, there is no surety that Nifty will sustain a support at 3800 levels. A yawning gap on charts have been left post-election results. A jump from Nifty 3650 to 4350 was a huge 20% gap-up opening on the day Congress-led UPA Government was re-elected on Centre. This gap needs to be filled up on charts sooner or later. Half the gap has been already filled from Nifty 4350 to 4000 levels, remaining from 3650 to 4000 still pending.

However, it is not necessary that Nifty might make an attempt to fill-up the whole gap at this very attempt. It may take longer time depending upon market trend and mood. Markets have a knack of giving its participants a feeling that it moving ahead to do that pending repair job of filling the gap, but it may well decide to do it later. The idea to convey over here is that the repair job needs to be done, but not necessarily at this attempt and at current juncture.

Rocky Resistances

Lastly, to point out over here that now markets have 4 hurdles to pass for indication of any kind of bullishness. A primary level would be Nifty 4125 which proved to be a hurdle on weekly basis. Second hurdle is Nifty 4250 which was an active support for the old Nifty range of 4250-4650. however, that support turns out into Resistance unless Nifty rules below it. A Trend Reversal could be witnessed above Nifty 4400 levels and a confirmation that we are moving ahead with a rally for a substantial rise could be procured only above Nifty 4650.

Fundamentally Sound

If markets correct substantially, here is a list of Mid-cap stocks to keep an eye on from strictly Long term perspective. Accumulation to be done in small quantity on dips, staggered over a period of time.

Thermax, Moser Baer, Kalindee Rail, Videocon Ind., Adlabs / PVR, Gitanali Gems, Alok Industries, Biocon / Glenmark, Financial Technologies, I-Flex / 3i Infotech, IVRCL / HCC / Patel Engg., Punj Lloyd / GMR / JP Asso, BOB / BOI / Indian Bank, Voltamp Transformers, I.B.Realestate / HDIL, Educomp / NIIT Ltd., Time Technoplast, Aditya Birla Nuvo, Deccan Chronicle, Crompton Greaves, Pantaloon Retail, Reliance Capital, Praj Industries, Jain Irrigation, Aban Offshore, GE Shipping, Everest Kanto, Opto Circuit, United Phosphorus, IDFC /PFC, Bartronics, Sesa Goa, BEL.

Note: The above list of Mid-caps is not a recommendation to Buy stocks. It is just a list of few mid-cap counters for investors to focus during down turn as probable buying targets when their valuations touch lucrative and reasonable levels. While some of the above mid-caps are already quoting at cheap levels, some others are not so cheap at current levels.

Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any kind/nature for your trading and investment decisions and its consequent results.

Nifty Outlook & Trading Ideas for Next 15 sessions

Nifty Outlook:

Technically, Nifty has established a weekly close above 200 DMA levels which is perched around 3450. Though, for a confirmation of this trend of sustenance of Nifty above crucial Resistance of 200 DMA, we will wait to determine a weekly close above 3500 for the upcoming truncated week.

A weekly close above Nifty 3500 levels would mean an uptrend which could stretch as high as 3850-4250 on the upside. On the downside, Nifty has a strong support at 3300 and 3120. In my previous to previous post dated April 10, 2009 following content was posted for readers on Nifty Technicals:

CURRENT MARKET TECHNICALS:

We have successfully crossed crucial levels of Nifty 3240 which acted as a strong resistance for the last 5 and half months. This level of 3240 proved resistance for 4-5 times in the last few months. Now, the next resistance is at Nifty 3450 level which incidentally is an all important 200 DMA levels.

CRUCIAL 200 DMA RESISTANCE:

Now, markets shall take a breather for some time around current levels or within a narrow Nifty range of 200-300 points lower from here as a pull back approach. Then again, markets are likely to re-test Nifty 3450 (for 1 or 2 times) to check its resistance strength. If in final analysis, markets succeed in crossing crucial Nifty 3450 level, we may well be in for a surprise rally towards Nifty 3850-4250. These ultimate targets of Nifty 3850-4250 may well be the highest point of current bear market rally, if we succeed to cross over 3500.

INTERVAL TIME FOR TRADERS:

Traders can remain cautious around Nifty 3400-3500 levels. They can book some gains around 3400 levels and wait for the volatility and pull back to fall out. They can again retain their long position if Nifty 3500 are crossed over which may engulf a new round of short-term rally. Nifty 2900-2950 should be an absolute Stop Loss for all kind of intermediate Long positions for the trading fraternity.

A 'Contra' call for traders would be to short the Nifty around 3400 levels with a Stop Loss of 3500 & book gains with initial target of 3240-3120.

As mentioned above, the markets faced resistance at Nifty 3410 and pulled back to 3310 for couple of days. Again markets have come back to re-test the crucial 200 DMA resistance and almost managed to sustain with a weekly close above it on the back of strong hold from bulls.

Nifty Traders: Traders can go Long on Nifty in around 3450-3500 range (preferably above 3500 closing) with upside Targets of 3850-4250 & observe a Strict Stop Loss of Nifty 3300 levels. Please note that the Stop Loss to be observed on Closing basis.

Stock Specific Trends:

In the same posting, i have made a narration of few more stock specific trends especially large-caps and mid-caps. Most of these stocks were predicted to have been topped out in short-term unless Nifty makes a fresh up move above its 200 DMA resistance.

SIGNS OF TIRING OUT:

These stocks are expected to take a small breather if the current rally is, in deed, to continue forward even from here: Reliance, Grasim, ONGC, Hero Honda, Bajaj Auto, Tata Steel among large-caps.

All the above stocks except Grasim (which inched a bit higher in last 1 week) seemed largely stuck to their ground as most of them had rallied sharply in the recent run up of markets as a whole. RIL continues to remain perched around Rs.1700-1800 levels, ONGC is stuck around Rs.800-900 and Hero Honda remains bound in 1000-1150 range in spite of better than expected results. Tata Steel made a high of around Rs.290 and slipped to Rs.240 odd only to recover around Rs.260.

Though, these stocks are likely to further their winning streak if Nifty manages to sustain and move forward above 3500 levels. These stocks will slowly move to make higher tops but at a slower pace than other markets laggards.

Dark Horses:

DARK-HORSES FOR SHORT-TERM RALLY:

Stocks to watch out for sharp bounce in the upcoming times are Bajaj Finserv, IDFC, LIC Hsg, Patel Engineering, I.Bull Finance, Videocon Industries, A.B.Nuvo, Thermax, R.Comm, SBI & BHEL. This mix of large-cap & mid-cap stocks have not moved up appreciably as compared to other stocks. And there is every possibility that they move faster to catch-up with their lag against the market on the back of their buoyant fundamentals.

The above writing has presence in my same posting dated April 10, 2009. Bajaj Finserv, LIC Hsg, Thermax, Rcom, SBI and BHEL have moved at a faster clip in the last 15 days of market movement. While SBI has graduated from Rs.1000 to Rs.1300, Bajaj Finserv has rised from Rs.150 levels to Rs.230 levels. LIC Hsg Finance has moved exuberantly from Rs.230 to Rs.340 at yesterday's closing. IDFC has witnessed a sharp run up from Rs.50 to Rs.75 during the period.

In my previous post dated April 15, 2009 on Implication of Satyam Acquisition, a clear cut Sell call was given for Tech Mahindra around Rs.370-380 zone. The stock had slumped to Rs.310 levels before recovering to Rs.340 along with markets.

Trading Ideas for Upcoming 15 sessions:

1) IDFC: This company from NBFC space has run up smartly from Rs.60 to reach Rs.75-78 range. If IDFC manages to conquer Rs.82 levels as a weekly close, it will graduate swiftly to its next target of Rs.95-109 in a quick period of time on the back of break-out on the upside. CMP Rs.75.

2) BHEL: Heavy Engineering major BHEL can be bought around Rs.1550-1630 with a Target of 1800-1950. Strict Stop Loss of 1500 is a must for trading in this Power Equipment major. CMP Rs.1639.

3) Videocon Industries: Buy Videocn in the range of Rs.105-120 with a quick target of Rs.150-160 with in few sessions. Strict Stop loss for this diversified conglomerate should be placed at Rs.90. CMP Rs.122.

4) Power Finance Corporation: If this Power Finance company sustains above Rs.160 for 2 consecutive days it will witness a break out for Targets of Rs.185-195. Stop loss for this stock can be observed around Rs.140-145. CMP Rs.157.

5) Power Grid Corporation: Power Transmission major PGCIL would witness a break out if it manages to sustain above Rs.105 for next week closing. The stock can later on soar to Rs.120-130 without much patience. Stop Loss Rs.90. CMP Rs.100.

6) L&T: This E&C giant is most likely to cross Rs.1000 & touch Rs.1050-1100 if Nifty manages to sustain above 3500 for next week.The stock will lead the rally along with other heavy weights to prop up the markets from here.

7) Investment Idea: Long-term investors can grab Gitanjali Gems if it falls back in the range of Rs.35-55 for some reason. It is a leading mid-cap from Gems & Jewellery space with bright prospects from long-term horizon.

NOTE: Readers are requested to keep any eye on break-out signal levels wherever mentioned specifically in above Trading calls. Like for IDFC, PFC & PGCIL levels to watch out for are Rs.82, Rs.160 & Rs.105 respectively, above which those stocks should witness a break-out. So, short-term trade should be executed only if such signal levels are crossed over.

Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any nature for your trading and investment decisions and its consequent results.