| The market made an upside breakout and consolidated above a key support. The Nifty closed at 5974 points for a week-on-week gain of 3.67 per cent after registering a new intraday high of 6042. |
| The Sensex was up an equivalent 3.11 per cent though it didn't register new highs. The Defty rose a disproportionate 4.36 per cent as the rupee strengthened through the week. The Nifty Junior rose even more strongly to register a 4.49 per cent gain. |
| Breadth was fairly good through the week and there was a volume expansion. However, there was a burst of profit-booking on Friday afternoon after the market opened high. The BSE 500 was up 4.49 per cent while the CNX Midcap was ahead by an amazing 6 per cent. |
| The CNX IT made a significant contribution to overall gains with a 6.3 per cent bounce. Both mutual funds and FIIs were aggregate buyers during the week though the mutuals were net sellers on a couple of sessions. |
| Outlook: If the market closes above 6000 Nifty, there would be a short-term target of 6150 and a medium term target of 6350. But trading on Friday evening suggested that there could be more profit booking at these levels. |
| Rationale: The market has almost completed a bullish saucer formation but it is testing severe resistance at the 6000 Nifty levels. On the downside, there is a lot of support available at 5850. It could oscillate between the narrow confines of 5850-6050 through much of next week. |
| Counter-view: The medium-term trend seems to have turned positive again after a brief three-week correction that saw prices pulling back till a low of 5519. The volume expansion at current levels suggests that the next upwards breakout is imminent. |
| Bulls & Bears: At the level of individual stocks, Friday's trends were a little mixed. The IT sector saw sharp recoveries across the board on the basis of the US rate-freeze which is seen as good for the rupee. Leaders like Infosys and TCS did well and so did second level IT stocks such as Polaris, Geometric, Kale Consultants, RS Software etc. |
| There was also bullish action in pharma majors such as Dr Reddy's, Ranbaxy and Cipla though the latter saw a sell-off at higher levels. Apart from these, there were scattered winners such as Bharti, Bharat Forge, HDFC, ICICI and Oriental Bank. |
| However Bajaj Auto and Bhel saw heavy selling and there was also profit-taking in traders' favourites such as GMR Infrastructure, RNRL and RPL. |
| MICRO TECHNICALS |
| BAJAJ AUTO Current Price: 2702 Target Price: 2650 |
| The stock has seen a bearish engulfing formation with Friday high-low range being larger than the previous sessions and the stock closing near the low. It has also seen a drying up of volumes. If support at 2700 breaks, there would be a minimum downside target of 2650 and likely drop till 2550 levels. Keep a stop at 2735 and go short. |
| BHARAT FORGE Current Price: 352 Target Price: 375 |
| The stock has made a five-session move off a low of 307. It has seen reasonable volumes during this period. There's scope for a climb to 375 levels on at least intraday basis. Keep a stop at 345 and go long. Start booking profits above 370. |
| ORIENTAL BANK OF COMMERCE Target Price: 300 |
| The stock seems to have completed a breakout on volume expansions. It has a potential target of 300 "� this would be a new high. Keep a stop at 272 and go long. Book profits above the 295 level. There is potential for OBC to move till 315-320 in the long-term. |
| RANBAXY Current Price: 407 Target Price: 440 |
| The stock has seen a consolidation and recovery from the 375 level. It has seen a volume expansion in the past two-three sessions. There will be some selling at 420-425 levels but there is a likely target of 440 before it runs into really serious resistance. Keep a stop at 397 and go long. Book partial profits above 425. |
| (The target price and projected movements given above are in terms of the next five trading sessions unless otherwise stated.) |
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