WEEKLY TRADING HIGHLIGHTS & OUTLOOK

31 Dec, 11

S&P CNX NIFTY

OPEN

4718.15

HIGH

4800.50

LOW

4608.90

CLOSE

4617.80

Change(pts)

-96.20

Change (%)

-2.04

MARKET OUTLOOK

The NIFTY opened the week on a positive note and registered an intraweek high of 4800 levels. The Index witnessed selling pressure from the higher level which led it to decline to an intraweek low of 4608. The NIFTY finally closed at 4618 with a loss of 96 points. The index has continued its downfall and closed below its crucial levels of 4700. A weekly close below 4700 indicates that the downward momentum would continue in the upcoming sessions. Sustenance below 4600 could see Index retesting its 52 weeks low of 4531, below which declining momentum will gain velocity and head towards the lows of 4480 / 4420 /4300 levels. On the upside the index has multiple resistances near its moving averages placed at 4700--4750 /4815. A close above the moving averages would inject some optimism and the index could retest 4850 levels (declining trend line).
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WEEKLY TRADING HIGHLIGHTS & OUTLOOK

31 Dec, 11

BSE - SENSEX
OPEN HIGH LOW CLOSE Change(pts) Change (%) 15440.10 15911.23 15135.86 15738.70 -283.80 -1.80

MARKET OUTLOOK

The SENSEX opened the week on a positive note and registered an intraweek high of 16049 levels. The Index witnessed selling pressure from the higher level which led it to decline to an intraweek low of 15406. The SENSEX finally closed at 15454 with a loss of 283 points. The index has continued its downfall and closed below its crucial levels of 15750. A weekly close below 15750 indicates that the downward momentum would continue in the upcoming sessions. Sustenance below 15400 could see Index retesting its 52 weeks low of 15136, below which declining momentum will gain velocity and head towards the lows of 15250 /15100 /14500 levels. On the upside the index has multiple resistances near its moving averages placed at 15668--15877 /16064. A close above the moving averages would inject some optimism and the index could retest 16200 levels (declining trend line).
Key Levels & Average
INDEX SENSEX NIFTY BANK-NIFTY Close Support-1 Support-2 Resistance-1 Resistance-2 8 DMA 34 DMA 200 DMA

15738 4618 7968

15250 4540 7820

15000 4350 7688

15650 4700 8000

15870 4800 8234

15668 4687 8153

16064 4815 8581

17578 5278 10187

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

31 Dec, 11

TRADING RECOMMENDATIONS

CLOSE (`CMP) SUPPORT-1

692.95 666.00

SUPPORT-2 RESISTANCE-1

650.00 705.00

RESISTANCE-2 52 week-High

724.00 1091.40

52 week-Low

689.00

Reliance Industries Limited CMP` 693.10 Technical Outlook & Trading Strategy:The stock price of Reliance Industries Limited has been in a bear market since quite some time now. The stock price has now broken below the 52-week lows with above average volumes. The stock has also registered a breakdown from the head & shoulder pattern. This hints at fresh momentum on the downside in the coming sessions. We advice traders to initiate shorts at current level and again on the pullback to the levels of 700--705 with a stop loss placed above `722.6 for Targets of `666 / ` 645 in the coming trading sessions.

CLOSE (`CMP) SUPPORT-1

428.15 415.00

SUPPORT-2 RESISTANCE-1

400.00 444.00

RESISTANCE-2 52 week-High

460.00 520.00

52 week-Low

333.00

Kotak Mahindra Bank Limited CMP ` 428.15 Technical Outlook & Trading Strategy:The share price of Kotak Bank has registered a breakdown from a Bearish Head & Shoulders pattern. The measuring implication suggests a strong possibility of the share price declining towards the levels of ` 410/ `400 in the near future. On the oscillators front the ADX has already given a sell signal suggesting weakness on the downside. We recommend a sell at current price and on pullback to the level of `435--438 with stop loss placed above ` 441.60 for the aforementioned targets.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

31 Dec, 11
CLOSE (`CMP) SUPPORT-1 125.90 121.80

SUPPORT-2

118.80

RESISTANCE1

130.00

RESISTANCE2

136.00

52 week-High

313.95

52 week-Low

107.10

Crompton Greaves Limited CMP` 125.90 Technical Outlook & Trading Strategy:The share price of Crompton greaves had been in a downtrend since Mid June. It is now showing signals of reversals. The share price has moved above its declining trend line and we are also seeing positive crossovers of moving averages. The momentum indicator is also showing positive divergence which suggests that the declining movement of the price could have lost force and in all likelihood give some kind of a bounce back. We expect that the stock price to move up and test resistance levels of `130/ ` 134 in near future. We recommend traders to buy the stock at current levels and accumulate on pullback to levels of `123--`122. We would further recommend a stop loss placed below `120.4 for all long positions.

CLOSE (`CMP) SUPPORT-1

1590.00 1620.00

SUPPORT-2

1642.50

RESISTANCE1

1540.00

RESISTANCE2

1500.00

52 week-High

1823.55

52 week-Low

1165.65

Bajaj Auto Limited CMP` 1590.00 Technical Outlook & Trading Strategy:The above chart of Bajaj-Auto Ltd is a classic example of consistent trend following. As it can be seen, the stock price started an UPTREND from 1300 levels, continued to move up while respecting its rising trend line all the way till 1650 levels. In the last few session the stock price ended the cycle of making higher tops and higher bottoms while trading in a 100 point SIDEWAYS range, which was the first hint of uptrend come to a halt. Now, a break below 1585 on closing basis would set in motion a fresh DOWNTREND in the stock price. We recommend a sell below `1585 with stop loss placed above ` 1636.60 for the targets of `1545 / `1500 levels.

WEEKLY TRADING HIGHLIGHTS & OUTLOOK

31 Dec, 11

CLOSE (`CMP) SUPPORT-1

2757.25 2700.00

SUPPORT-2 RESISTANCE-1

2680.40 2830.00

RESISTANCE-2 52 week-High

2900.00 3023.90

52 week-Low

2161.50

Infosys Limited CMP` 2757.25 Technical Outlook & Trading Strategy:The Share Price of Infosys has been trading in a narrow range of ` 2650-` 2750 for the past 3 weeks. The share price has now given a breakout from this narrow range .We expect the stock price to move up and test resistance levels of ` 2830 / ` 2894 in near future. The share price has also closed above its cluster of moving averages. The momentum indicator is indicating fresh up move in the stock. We advice traders to go long at current level with a stop loss placed below ` 2692.8 for the above mentioned targets.

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