INDEX - TECHNICAL STAND POINT - Equity Research Report By Mansukh

Nifty | Bank Nifty
















 


  



TREND LINE CONJECTURE:-

We have drawn trend line joining two significant bottom 3918 and 4786. According to trend line theory next levels of support could be around 5400. Any closing below this trend line may further dampens the current scenario and possibility of getting new lows near to 5200-5250 could be more justified. On the upper side any bounce back from 5400 may leap indices towards 5640-5650 where we might see some profit booking
Same in the Sensex , channel line drawn from the lows of 13219 and 15960 may provide crucial support around 17900-18000. Below this flood gates may open and we might see some drastic fall near to 16000 in a short span of time. On the flip side 20500 could be the key resistance level to watch.

MOVING AVERAGES AND THE CANDLE STICK PATTERN:-

The short term moving average is an indicator of the trend in the near future. The value for the short term moving average (20 DMA) is at 5470 and medium term moving average (50 DMA) is at 5740. Presently, the Nifty trading below20 , 50 and 2000 dma, which would be treated as bearish si signal coupled with oversold territory. Hence possibility of bounce back couldn’t be rule out at any stage though5640-5650 (200 dma) might be the key resistance zone.

FIBONACCI RETRACEMENT:-

Entire rally from the lows of 4786 to 6335 took 25 trading weeks without any substantial correction. If we applying Fibonacci theory and took retracement of this current rally, 50% and 80% retracement stood at 5555 and 5375 respectively. Any break down above this level could open the flood gates and possibility of losing another 100-200 pts should be on higher side. Moreover spot index created some gap on 14/02/211 of more than 30pts which has not been filled yet. Hence we are expecting this gap should be filled in the upcoming week however possibility of bounce back couldn’t be rule out at any stage.

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Equity Research Weekily Report by Mansukh (7-March-2011)

Equity research report
SNAPSHOT
With an exception of the last trading day of the week, Indian benchmarks showed high-spirited performance in four back to back sessions of the passing week as they extended last Friday's pullback rally with bottom fishing in fundamentally strong shares gathering greater force. Markets finally witnessed the much needed relief as they commenced the week with around 500 points rally,though took a couple of days off to consolidate and then made another move upto 5,500 on Thursday. However, all the good work was partly undone by Friday's trade as the frontline indices capitulated to the selling pressure exerted by bears of the market. Meanwhile India VIX, a gauge for market's short term expectation of volatility, gained 7.13% at 24.18 from its previous close of 22.57 on Thursday (Provisional).








WEEK GONE BY
The Bombay Stock Exchange (BSE) Sensex surged by 482.91 points or 2.72% to 18211.52 during the week ended February 18, 2011 while the S&P CNX Nifty was up by 148.95 points or 2.81% to 5458.95. The BSE Mid-cap index was up by 2.87% to 6661.65 and the Small-cap index zoomed by 4.10% to 8128.91. On the National Stock Exchange (NSE), CNX Nifty Junior dipped 3.00% to 10406.25, CNX IT tumbled 1.91% to 6719.65 and CNX midcap was the worst performer, declining by 3.45% to 7483.9. On the other hand Bank Nifty closed flat, up by 0.13% to 10447.75. In the BSE sectoral space, there was only one loser, Realty down by 2.24% for the week to snap the week at 2052.11. On the other hand, Bankex was the biggest gainer up by 4.87% to 12419.72, followed by Metal up by 4.02% to 15892.31, Capital Goods (CG) up by 3.93% to 13132.51, Consumer Durables (CD) up by 3.40% to 5719.04, Fast Moving Consumer Goods (FMCG) up by 2.94% to 3295.36, Auto up by 2.67% to 8717.71, Public Sector Undertakings (PSU) up by 2.12% to 8522.38, Power up by 2.09% to 2611.98 and TECk up by 1.53% to 3647.97.

DTC to be implemented from April 1, 2012: FM

Finance Minister Pranab Mukherjee today said the Direct Taxes Code (DTC), which will replace the Income Tax Act, is proposed to be implemented from April 1, 2012.

"... The code is proposed to be effective from April 1, 2012," Mukherjee said in his Budget speech 2011-12.
In the DTC Bill, which was introduced in Parliament last year, the annual I-T exemption limit is proposed at Rs 2 lakh, compared to Rs 1.6 lakh at present.

Under the Bill, the government seeks to widen tax slabs to levy 10% tax on income between Rs 2 lakh and Rs 5 lakh, 20% on Rs 5-10 lakh and 30% above Rs 10 lakh.

Currently, income up to Rs 1.6 lakh per annum is exempt from tax for individuals. For women and senior citizens, the limit is 1.9 lakh and 2.