GEPL Technical Analysis view on Nifty – 13th September 2010


Nifty finally closed above 5600 and showed a breakout of the multi-month resistance trendline. Nifty exhibited a 300 point rally in the last two weeks. The current weekly close of 5633 is 53 points higher than the previous week’s close and also a 19-month high.

In the Nifty Futures Weekly Chart, a price gap is seen near the level of 5690-5700 and as a result, Nifty may show a temporary halt near this level. Hence we would like to recommended partial profit booking near the level of 5690 and on can re-enter long positions near the level of 5600-5500 if Nifty shows a corrective trend.

Sector specific, Capital Goods sector, Banking sector and Fertilizer sector attracted maximum buyers and the mid-cap sectors stocks are expected to continue their upward move. At the current level, we at GEPL would like to recommend NTPC and Hero Honda in the frontline segment and Thomas Cook and Jain Irrigation in the mid-cap segment on the long side for the coming week.

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