#212 Nifty update: Sky is the Limit

Heat Wave and Modi Wave are the 2 unstoppable waves currently prevailing in the climate. No one would have dreamt that Nifty could reach this high in such a short period. Such a vigorous rally has two implications 1) Still more upside is left or 2) this is a false rally and we may see sharp correction. I am support the first view and SKY IS THE LIMIT for this bull run. Looking at the economy data yet it hasnt recovered so well that it get digest such a move in markets but its just the expectation of the world that New govt will make India a better place and the work has already begun. Many infra and mining bills are cleared on the fast track and also Power sector is seeing some huge reforms. Two laggards in the markets since last few years were Power sector and Mining which has recently outperformed other sectors of the markets. We have Trade Balance number at 12 today during the market hours and that could be important for the markets. In my last post we did mention a range bound movement but we recommended to go long if Nifty closes above 7488 which happened last week. Our First target than 7688 almost has been achieved  which now makes us hold nifty with the tgt of 8031 on the upside. Technically indicators have turned positive for now on daily charts while weekly and monthly continue to be suggesting a strong bull run. As we all can notice in the chart, nifty is resisting near to the line which is 7715 level. Once we break the resistance line on the upside than we could see a sharp move ahead to 8031. 5 day EMA has been acting as strong closing support which is at 7568 as of now.

Our recommendation: Hold the longs which has triggered at 7488 with the next tgt of 8031. Keep a trailing closing Stop loss at 7568.

*Disclaimer: all the view are based on technical analysis and are personal. Please rely on our recommendation after thorough study and at your on risk.

#35 Stock Update: Bank on Some Fitness

              Market mid-caps are at attractive to valuation but we have to select few out of the pool. One of them after Dena Bank amd Adani Power which we recommend is Talwalkars Fitness. Why??? Looking first into some basic fundamentals. Sales Turnover has been gradual increasing from 66 crores on March 2010 to 145 crores in March 2013 (rounded off). Earning per share (EPS) for the same period has been up from 4.39 to around 10.5. Talking about Book value than its currently at Rs. 77. One safe thing about talwalkars is that it has secured loans of around 125 crores while has reserves of 176 crores. Looking at listed peers for the stock than its only COSCO India with EPS at 0.70 and Book value at 32. Indias demographic says we have most population of the age between 18-35 and i guess they are now more health conscious.  Firstly, Gym is like a trending fashion amongst high school kids and College teens. Secondly, Going for a branded title is also a must for them. Both the conditions are favorable for Talwalkars.

                 Coming to charts. Talwalkar has given a breakout to strong resistance line with Huge volume as seen in the charts. Secondly now its taking support at new line. Stock has given a double bottom support around 109 level after listing in 2011. Currently it is resisting near to its 200 EMA at 141 but looking at indicators and volumes its a buy on Dip for long term

Our Strategy:We recommend to go Long at CMP at 137 tgts 179/320 Sl: 117 for a long term view

#178 Nifty Update: Super Bullish confirmation achieved!!!

Our 1st tgt 5988 on Nifty has been achieved as we stated in our #175 Nifty update. Today we saw a weak opening but markets rebounded strongly on Trade deficit numbers which came at 2 years low. Technically nifty took support at a moving average. But close has given a more useful bull sign as per candlestick i.e., A bullish engulfing. Though it is more significant at the lows of chart but we cant ignore today's pattern. We could consider it as a continuation pattern of the current bull trend. Indicators are still expecting some upmove. We are intact with our next to targets 6090/6150 with a trail SL of 5900 (closing basis)

#34 Stock Update: New Morning for Adani Power

Our new recommendation for Multibagger is ADANIPOWER. I know stock has been in down trend since a life time high of 144 but now i am witnessing some accumulation on the weakly chart around 32-34 levels and Volumes are way above avg volumes. Technically on daily chart indicators have turned Super Bullish and stock is comfortably trading above all short term moving averages. A resistance line is around 35 which could act as a miniature breaker but the bull power since to over come it. On weekly chart currently candlestick pattern 'morning star' is in formation and for risk taker its a good time currently to go long for long term.

Our Recommendation: GO Long for risk takers and safe traders above 35 with tgts of 47/55