Stock Tips for the Week

Indian markets ended deep in the red on Friday as bears came out in the open following unexpected rise in jobless claims in the US and deficit scare in Europe. All the sectoral indices closed in the red, with realty, metals and capital goods being the worst hit.

Nifty ended at 4718.65, down 163 points or 3.35 %. The index fell below the psychological support of 4700 to touch a weekly low of 4692.35.

“Nifty trend is weak as the global sentiments are not in favour of the stock markets. If we look at the Indian markets, Nifty has fallen by only 11 % from their recent high of 5310 but technically trading near to its oversold region as the oscillator RSI is at 29 on the daily chart.

In the short term we don’t see a major downtrend from this current level of 4,710 and chances are that we could bounce back from the level of 4,660 / 4,580 levels. And to the extreme the fall could extend up to 4,410 / 4,140 if any major negative news flows from the Asian or Western countries or if the Indian budget is not encouraging.

India’s benchmark indices are down about 11% from their recent peak, making stocks cheaper, but concerns over deficit, earnings and policy remain. Investors may wait till the Budget on February 26 to take a call on investments as they would want to see whether finance minister Pranab Mukherjee takes tough measures to put the house in order, or gives in to corporate demands to retain stimulus.


STOCK FOR NEXT WEEK:

BUY DABUR INDIA IN CASH IN NSE ABOVE 172.05 WITH SL OF 169.45,TGTS 174,176,177.80.

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