MARKET OUTLOOK
It was a great week for equities as markets rallied more than 3%. More heartening was the fact that rally was
broad based as many sectors participated. Autos had a great week with Tata Motors stealing the show by
posting almost 10% weekly gains. Great monthly figures for almost all auto majors further boosted the
sentiments as stocks like Hero Honda, Bajaj Auto and M&M posted strong gains. Banks were also in
limelight. Overall it was a bullish week and even the global cues aided the positive sentiments.
Nifty broke past 4950 and is looking set to target 5180-5220 in coming week. Technically, the range of
5180-5220 could post significant challenge and we might see some pull back or at least some consolidation
around this level. Stock specific moves could dominate the proceedings in coming couple of weeks as more
mid caps join the bullish bandwagon. Cement stocks are looking good for more gains and Ambuja cements
looks positively poised. Strong new bids for fresh two IPL teams could propel stocks like DCHL, United
Spirits and Indian Cements to higher levels. Sugar stocks are showing some value buying at current levels
and are likely to move higher in coming weeks. Renuka Sugars and Bajaj Hind might move up by around 7-
10% each. Amongst the heavyweights, RIL, SBI and ICICI bank are showing bullish patterns. RIL seems to
have hit a credible bottom around 970-980 and could be bought for decent gains over next 4-6 weeks. Jindal
group had a great week and momentum suggests more gains in stocks like JSW Steel, JSW Energy, Jindal
Southwest holdings and Jindal SAW. Amongst others bullish bias is seen in GE Shipping, Punj Lloyd
(above 188), PFC (above 262), IVRCL Infra, Idea and REC.
Nifty has immediate support around 5035-40 and strong one around 4980 while resistance is likely around
5200-5220.
DERIVATIVE PICK
DCHL (CASH – Rs.169.40) : The stock gained more than 4% on Friday’s trading and once the next IPL
auction take place, market will give open prospects for the value unlocking of Deccan Chargers which is a
part of DCHL. Buying is advised above Rs.170 for a target of Rs.178 and Rs.184. Higher target of Rs.188
and Rs.198 is also possible. Stop Loss of Rs.158 should be kept.
Markets in rally
The Nifty closed the first post budget week with handsome gains, gaining 166 points (3.38%). On Friday,
when we were sleeping, the U.S Markets rallied strongly, with the Dow closing 122 points higher. This
should result in some positive feedback on Monday when our markets open. Resistance in the Nifty comes
in around 5200 where a large trading range finds its resistance line