DAILY MORNING EQUITY REPORT OF 29 DEC 2011

INDEX REVIEW & OUTLOOK

Open             High            Low           Close          Change(Pts)        Change(%)   8EMA    34EMA       200EMA

4756.  20      4756. 20    4685.65    4705.80        -44.70                   -0.94           4735          4840        5287

The NIFTY opened at high of the day placed at 4756 and traded southward throughout the day. The nifty recorded a low of 4686 and finally closed at 4705,  with a loss of 44 points. The index has fallen all through the day and witnessed support from the crucial trend line placed at 4700 (as shown in the chart). If index sustains and trades below 4700, then  it is likely to drop down to the previous swing lows of 4640 / 4600 / 4530 levels. Any pullback from current level would retrace to the levels of 4730—4782 / 4800.  Trading above 4800 could see index to head towards its declining trend line placed in the range of 4880—4900 levels.

TOP TRADES TO WATCH OUT FOR:-

Bharat Heavy Electrical Limited CMP—RS. 247.80

CLOSE       52-H       52-L        SUP-1         SUP-2      RES-1        RES-2      8EMA          34EMA           200EMA

 247.80      472.60    223.35     238.80      234.40      258           264            242               268               358

The share stock price of Bharat Heavy Electrical Limited has fallen from the highs of RS.292 to the lows of RS.223.35 and now trading sideways. The stock is sustaining above its near term moving average. The stock is also forming bullish reversal pattern. Sustaining above RS.247 the stock can rally to the levels of RS.260-- RS.268 levels. Traders can go long above 247 with a SL placed below RS.238.8 for the above mentioned targets.

IFCI Limited CMP— RS. 25.35

CLOSE         52-H         52-L         SUP-1       SUP-2      RES-1       RES-2       8EMA        34EMA       200EMA

25.35           68.50        19.65        24.40         23.80        26.80          27.40        17.50              23            40

The stock price of IFCI Limited has been falling from the highs of `33.60 and registered a low of RS.19.85, since then the stock has pulled back and now trading sideways for few sessions. The important point to be noted is that the stock is about to generate breakout from its cluster of moving averages. On the weekly chart the stock is also forming a bullish reversal candlestick pattern. The momentum indicators are rolling upward indicating more upside for the stock. We advice traders to go long above RS.24.50 with a stop loss placed below RS. 23.40 for the targets of RS. 27.50.

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