Stock Tips for the Week
Nifty Started the week with negative tone after reaching to financial year 09-10 record high of 5399.65 in the previous week. Nifty lost its upside momentum in the very first trading session and continued for entire week just ahead of RBI credit policy review due on Tuesday next week. Profit booking led the nifty retrace to low of 5237.55. Nifty is currently moving in the range of 130 points from 5230 to 5360 on account of low implied volatility. Technical indicators like RSI and stochastic oscillator are currently on the verge of entering into oversold zone and moving in medium negative territory. MACD has also shown negative divergence indicating correction in near term. Nifty is currently moving in rectangle and likely to break it on the lower side. Any decisive break on the lower front of the rectangle could take the nifty to 5150-5100 level. Expecting nifty to remain range bound in between 5150- 5325 in next week. Next week market movement will solely depend on RBI move. Any hike in key rates would led nifty to 5100-5000 levels, however probability of this seems very low as inflation figure is still in single digit which is temporal sign of relief for RBI. On the day of RBI policy review we could see high volatility in nifty. If the key rates remain unchanged we could see bounce back in nifty up to 5350 levels. Nifty has intermediate term support at 5150 and resistance at 5325. Nifty is currently trading below 5 and 13 day EMA which indicates weakness of the uptrend.
And now some stocks which trader must keep watch for next week are:
Oriental bank of commerce
CMP 326.65
Target 310
Stop loss 336
Support resistance 310/340
Sesa Goa
CMP 471.55
Target 482-489
Stop loss 454
Support resistance 455 / 495
TATA STEEL
CMP 695.70
Target 710-725
Stop loss 670
Support resistance 670 / 735
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