Stocks to Watch for the Week

During the week, optimistic economic data including rise in Indian exports and advance estimates of GDP helped market to scale higher. Sensex closed the week gaining 236.94 points at 16,152.59 and Nifty up by 69.60 points at 4,826.85.

Nifty consolidated within a range with a positive bias during last week and tested 4,675 level on the lower side and 4,844 level on the upper side on the back of mixed global cues.

At present, Nifty is trading slightly above its 200 days exponential moving average on the daily charts, which is expected to provide it a strong support.

The technical indicators are still supporting its upward move and hence it is likely to continue its uptrend in the coming week as well.

But, it needs to breach its immediate resistance at 4,850 in order to move higher. Its MACD is about to give a buy signal by crossing above the signal line and RSI is at 42 levels which is also suggesting an upward move.

Global markets movement will also remain the key factor in deciding the trend for Indian market.


Upside 4,850 is the immediate major resistance for Nifty and if this level is breached, an upward move until 5,000 can be expected. Downside, it can test 4,600 levels if the crucial 4,750 support level is breached.

India's industrial output grew at its fastest pace in at least a decade in December, in further evidence of a strong economic recovery that could allow the government to follow the RBI in withdrawing stimulus.
Industrial output grew 16.8 per cent in December from a year earlier, up from revised annual rise of 11.8 per cent in November and also above analysts forecast for a 12 per cent rise, data showed on Friday.

Stocks to watch for the next Week:

MPHASIS

During the Current Week Mphasis Gained Momentum, and Crossed it’s Downward Sloping Trendline, the Stock is Trading Above all its Short Term Moving Averages. We Recommend Traders to buy this Stock Between Rs. 725 – 730 With a Stoploss Of 705 for a Target Of 750-770 in Near Future.

ORCHID CHEM

Orchid Chemicals has Been Stuck in a Downward Slopping Channel from the First Week of January 2010.

This Week the Sharp Increase led the Stock Closing above its Downward Sloping Trendline, This was Backed by Jump in Trading Volumes.

We Believe the move Above Rs 155 Could see the Stock Touching Rs 168 in Next one or two Weeks. We Recommend Traders to buy This Stock Between 155-156 With Stoploss of 151 for Target of 168 to 170 in Near Future.


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