The targets for the intermediate uptrend to fizzle out are at 15,869 for the Sensex and 4,769.60 for the Nifty. Keep on trailing this stop as these indices move higher. As per the time cycle we are likely to see the bullish trend to continue for the next seven trading days and traders can look to buy in declines and sell higher in this period.
In the last week, the Sensex gained 9.18% and the Nifty gained 8.05%. The CNX Mid Cap index ended 8.65% higher. Among the sectors, the BSE Consumer Durable index ended 12.94% and was followed by the BSE Reality index, which gained 12.66%. On the weaker side, the BSE Auto sector ended 4.13% higher and the next was BSE Healthcare index which gained 5.01%.
Our Markets continue to follow the world Markets and this is likely to continue. An intermediate rally has already started in some of these Markets and more Markets around the world are following suit. The earlier intermediate downtrend, which had started on February 4, has now ended on the March 18. The major trend remains down and only if we see a sort of consolidation between 14,500 and 18,500 for the next few months and then breakout on the upper side, a new major uptrend will start. However, currently the major trend remains down and investors must stay away and wait and only trade in the direction of the intermediate trend. They must remember that the current intermediate uptrend is an intermediate rally, unless the indices are able to move past the targets suggested above.
Today, I will take a look at the tech stocks, which have been improving and are poised to move higher in the current intermediate rally.
Infosys
Infosys was an underperformer in the earlier major uptrend, as the stock has been in a major downtrend since the beginning of 2007. The stock has been staying below its falling 30 WMA and will have to move past its earlier intermediate top of 1,685 in the current rally for the major trend to turn up. However, as this level is below its falling 30 WMA, higher levels by the stock will see profit-taking and investors must not be in a hurry to get into the stock. The current intermediate rise is a good trading opportunity for traders on the long side. The weekly MACD Histogram is making rising bottoms indicating that the bears are becoming weaker at this stage n this stock.
Wipro
Like most of the tech stocks, Wipro also went into a fresh intermediate uptrend by exhibiting rising minor tops and bottoms. The stock is in a major downtrend and is exhibiting descending intermediate tops and bottoms. It has come closer to its falling 30 WMA and could move higher in the current week after some consolidation. The earlier intermediate top for the stock is at 552 and the stock will have to close past this level if the major trend of the stock has to turn up. Before the stock moves past this level, it has to face a strong resistance from the major descending trendline. The relative strength line for the stock has started to improve and it is a good trading opportunity for the intermediate rally.
TCS
TCS will have to close past its earlier minor top of 899 to confirm an intermediate uptrend. However, with most of the stocks in the tech sector already in an intermediate uptrend, TCS will follow suit. Once the stock moves past 875, traders can look for long positions with a stop at 840. Trail this stop as the stock moves higher. The 30 WMA for the stock has been falling and this long term moving average will act as a strong resistance to the intermediate rally. The trading volumes for most of the stocks and the indices will be low in the rally. Investors must stay away for some more time till we see signs of the indices bottoming.
No comments:
Post a Comment