Stock Tips

It was a good week for the Indian markets as the indices after huge consolidation finally gave an upside breakout on account of friendly budget by our Finance Minister Mr. Pranab Mukherjee. The measures which were taken in the budget focused on lower fiscal deficit ahead , implementation of GST and DTC from 1st April, 2011, focus on infrastructure growth in long term and tax relaxation for individuals and corporate. Both the indices the Sensex and Nifty surged more than 1.50% and managed to give a weekly close above their crucial levels of 16200 and 4900. For the coming week our market may take cues from how the global markets pan out. Technically, nifty will continue to face resistance at higher levels of 4970/5040 and will simultaneously find support at 4860/4830 levels. A decisive break of either range of 5040 on the upside or 4830 on the downside will give further direction of the markets. If we maintain above the 5040 mark then further rally may continue up to 5080/5130 levels whereas if the downside support is broken then nifty may drag towards 4780/4740 levels.

Stock to watch for the upcoming week:

Hindzinc: Hindzinc in its daily charts is replicating a bottoming formation. The stock is consolidating in the range of 1125 on the upside and 1065 on the downside. Once the stock gives a decisive breakout above its resistance mark of 1125-1130 the stock can head towards 1165/1190 levels whereas immediate support for the stock is seen at 1095 mark.

Commodity Tips

Copper:

Technical view:

Copper MCX has broken an important trend channel on the downside, so overall trend in copper is weak. As a natural technical tendency it might go for testing the trend line of the channel which has resistance around 340 area and then correct again on the downside. Major support levels on the downside are 323/318/313.50. A crossover of 345 levels on the higher will doom the chances of correction and the trend then will be positive.

Strategy:

As the overall trend is weak, copper should be shorted on rise to the levels near 338-340 for targets 330/323/318/313.50 or if doesn’t shows a rise it should shorted below 323 levels for targets of 320/318/313.50.

Gold:

International COMEX Gold is currently trading in a range of a symmetrical triangle which is most likely to break to its important supply zone of 1132 level and shoot up.

The up move breakout will of course not be easy as 1129-1132 levels will act as a strong hurdle which needs to be crossed before we confirm an uptrend in gold.
Gold is also forming a inverted head and shoulders which is again signaling a reversal in trend on the positive side.

Strategy:

Long positions can be built in gold above 1132 for targets of 1141, 1147, 1162. However if gold breaks 1088 level on the downside, it dooms the chances of an uptrend in short term.

Silver:

International COMEX silver is also forming a symmetrical triangle, after it had a breakdown from big head & shoulders pattern, overall longer term trend looks negative in silver, but in short term, if we talk about next 1-2 weeks, it might see some corrective rally on the upside if it crosses the major resistance level of 1657.

Strategy:

Long positions can be built in silver above 1657 levels 1680/1695/1725. On the higher 1725-1740 can act as a good supply zone and bears will try hard to take the lead from there and trend can move in a negative direction. So one should be looking to short around 1725-1740 levels on the rise.

Crude:
Technical view:

Crude is overall in bullish trends and is facing strong resistance around 80.50-81 levels.
Beyond $ 81 it can continue the uptrend up to 82.30, 83.90,86 levels. On the downside $ 76 is a major support level and below which the trend can move in the negative direction for targets of $ 74, 72.50, and 69.50.

Strategy:

Long positions can be built above the levels of 81 for targets of 82.30, 83.90,86.
And could be shorted below $ 76 for targets of $ 74, 72.50 and 69.50.