WEEKLY TRADING HIGHLIGHTS & OUTLOOK

29 Oct, 11

S&P CNX NIFTY

OPEN

5114.7

HIGH

5399.7

LOW

5084.75

CLOSE

5360.7

Change(pts)

310.75

Change (%)

6.15%

MARKET OUTLOOK The Nifty opened on a positive note and maintained its strength throughout the week. The Nifty registered a high of 5399 and closed very near to that level at 5360, a total gain of 310 points. In our previous update we have discussed that the index has consolidated in a narrow range of 5000-5170. In intra week the index has continued to trade above 5170 (Triple top breakout) levels and filled up the previous gap of 52305270 levels. Going forward the NIFTY has resistance at its 200 days moving average near 54105420 levels. Sustenance above this can see Nifty to head towards 5460 levels (Declining long term trend line) in a short span of time. On the downside a close below the 5330 level could bring about a corrective move which could see the NIFTY test the levels of 5270 /5230 /5170.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

29 Oct, 11

BSE - SENSEX
OPEN HIGH 17011.06 17908.13

LOW

16898.6

CLOSE

17804.8

Change(pts)

1019.16

Change (%)

6.07%

MARKET OUTLOOK The SENSEX opened on a positive note and maintained its strength throughout the week. The SENSEX registered a high of 17908 and closed very near to that level at 17804, a total gain of 1019 points. In our previous update we have discussed that the index has consolidated in a narrow range of 17200-16650. In intra week the index has continued to trade above 17200 (Triple top breakout) levels and filled up the previous gap of 17360--17660levels. Going forward the SENSEX has resistance at its 200 days moving average near 18050 levels. Sustenance above this can see SENSEX to head towards 18260 levels (Declining long term trend line) in a short span of time. On the downside a close below the 17700 level could bring about a corrective move which could see the SENSEX test the levels of 17600 /17450 /17280.

Key Levels & Averages

INDEX SENSEX NIFTY BANK-NIFTY Close Support-1 Support-2 Resistance-1 Resistance-2 8 DMA 34 DMA 200 DMA

17804.8 5360.7 9917

17600 5270 9710

17450 5230 9515

18050 5410 10095

18260 5460 10150

17135 5155 9664

16834 5062 9605

18047 5417 10585

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

TRADING RECOMMENDATIONS

29 Oct, 11

CLOSE (CMP)

340.50

SUPPORT-1

333.00

SUPPORT-2

329.00

RESISTANCE-1

357.00

RESISTANCE-2

368.00

Bhushan Steel Limited ` 340.5 Technical Outlook & Trading Strategy:The price of BHUSHAN STEEL has registered a breakout from its symmetrical triangle pattern on the daily charts. Traders should note that breakout from a symmetrical triangle indicates trend reversal. Another sign of strength is that the price of BHUSHAN STEEL has closed above its key moving average clusters. The momentum indicator is also in rising mode. We recommend traders to buy 50% now and again in the range of `335` 337 levels with a stop loss placed below `329.4 levels for targets of `355 `366levels, expected to be achieved over the coming few sessions.

CLOSE (`CMP) SUPPORT-1

761.15 754.00

SUPPORT-2 RESISTANCE-1

739.00 781.90

RESISTANCE-2 52 week-High

806.00 841.90

52 week-Low

581.75

Divi's Laboratories Limited CMP` 761.15 Technical Outlook & Trading Strategy:The price of Divi's Laboratories Limited has gone through severe correction from the highs of `841.9 levels as on 28th July till date. The price of Divi's Laboratories Limited has been trading in a broad range of `748.75to `703.2levels since it registered a low of `690.05 levels on 26th Aug, 2011. The price witnessed a strong up move during the previous session of trade and it registered a close above its rising trend line. Another, key observation to be made on the charts of Divi's Laboratories Limited is that its indicators are coming out of the oversold territory and have given a buy signal. We recommend traders to buy 50% now and again in the range of `750`755 levels with a stop loss placed below `739.4 levels for targets of `785 `805levels, expected to be achieved over the coming few sessions.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

29 Oct, 11

CLOSE (`CMP) SUPPORT-1

26.90 26.00

SUPPORT-2 RESISTANCE-1

25.3 27.6

RESISTANCE-2 52 week-High

28.5 81.9

52 week-Low

22.8

Ashok Leyland Ltd. CMP - ` 26.90 Technical Outlook & Trading Strategy:The share price movement of Ashok Leyland from 06th Apr 2011 till date appears to be forming a symmetrical triangle pattern. It should be noted that symmetrical triangle patterns signify accumulation and suggest price advances once the breakout is recorded (above `27.10 for the said pattern). A break above the price level of ` 27.10 should start an upside movement with possible price targets of ` 28.3/ ` 29.5 in a short period of time. The stock has also closed above its 200 DMA and the momentum indicators are also in a bullish zone suggesting upside in the stock. The stock is also sustaining above its cluster of moving averages adding weight to the Bullish argument. We recommend traders to buy above `27.1 levels with a stop loss placed below `25.9 levels for targets of `28.3 `29.5 levels
CLOSE (`CMP) SUPPORT-1 58.40 57.70

SUPPORT-2

55.80

RESISTANCE1

61.00

RESISTANCE2

64.00

52 week-High

134.70

52 week-Low

52.05

Punj Lloyd Ltd. CMP` 58.40 Technical Outlook & Trading Strategy:The Share price of Punjlloyd corrected sharply from the highs of `221.35 levels as on 17th Jan, 2010 to register an all time low of 52.05 levels recently. But, as outlined in the chart above, stock has taken support between the `52--54 levels and this price action has now taken shape of a triple bottom formation. The stock has also closed above its key moving average clusters, which is also a sign of strength in the counter. The RSI indicator has also given a buy signal backed by a positive divergence. All of the above technical evidence is suggesting a trend reversal.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

29 Oct, 11

We recommend buying at current levels and again on dips to `57.5 -- `58 levels with a stop placed below `56.4 for an initial target of `60.6 -- `62 in the coming sessions.

CLOSE (`CMP) SUPPORT-1

855.00 800.00

SUPPORT-2 RESISTANCE-1

760.00 890.00

RESISTANCE-2 52 week-High

912.00 1025.00

52 week-Low

455.00

VIP Industries Ltd. CMP` 855.00 Technical Outlook & Trading Strategy:The Share price of VIP Ind. Ltd has registered a breakdown after completing a bearish Head & shoulders price pattern on its daily charts. Traders would note that a breakdown from a head & shoulders price pattern has negative implications on the future price movement of an index/stock. The momentum indicators were trading with negative divergences despite the recent rally. The share price has also closed below its moving average clusters support which was lending good support during the recent uptrend. We recommend traders to sell now and again in the range of `865--`872 levels with a stop loss placed above `884.6 levels for targets of `820 `800 levels

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