Weekly Market Commentary, 3rd FEB 2014

1. Weekly Commentary
2/3/2014
Technical View of Indices
Nifty
Due to weak global cues, Nifty broke both the first and second
support levels we had given last week. It gained a bit from week’s
low at 6027 to close at 6090.
In This Issue

We will be covering technical
view of Nifty and BankNifty
for the coming week as well
as give trading strategies for
Charts are showing weakness and our recommendation is not to
these indices to come out on
go long in index at least for now.
the top and minimize losses.
Let us evaluate Nifty’s daily chart in detail to check out important
levels for coming week:
We will also be giving some
stock recommendations on the
basis of technical analysis.
As can be seen from the daily chart, Nifty is still trading in a range and 5970 is an important level for
trading in the coming week. Charts are showing weakness but RSI is nearing oversold zone. Keeping this
in mind, our trading strategy for the coming week will be:

2. a) We will recommend going short in Nifty rather than going long. One can easily buy puts on any rise
above 6100 with stop loss of 6140 with target of 5980-5985.
b) If Nifty breaches 6135 and closes on any day above 6150, one can expect it to go to 6200 levels where it
faces good resistance at 6230 level.
c) Nifty has very strong support at 5970. Start accumulating and go long if Nifty falls to this level.
Bank Nifty
RSI is indicating oversold levels in BankNifty. But we are still seeing weakness in BankNifty. Let us
evaluate its daily chart for important levels:
a) We will avoid going long in banks for now as BankNifty is seeing weakness. Minor bounce back can be
expected in it once it falls to 10000 level. One can short bank nifty on any rise near 10450 levels with
strong stop loss of 10520.
b) Longs can enter at 10000-10050 levels with TG1 10200, TG2 10400 and stop loss as 9950.
c) 9600 acts as very good support level. Go long on any fall to this level.
Stock Picks
Very important: Remember to trade with no more than 2 lots at one time. Whenever you buy or
sell a stock, remember to place a stop loss immediately. This ensures mental preparedness.

3. Also, our research and recommended levels ensure that you get good risk to reward ratios.
Therefore, please ensure that you do not enter the stock if it is not in our suggested price range.
Secondly, always make sure that you book some profits at different target levels and start
placing trailing stop losses as per your comfort levels.
Last Week’s Picks
a) Our first pick of Wipro didn’t show much movement. It traded flat within 561-578 range. We
recommend to close this call as we see a little more upside in Wipro before the correction begins.
b) M&M opened near its support level of 860 and showed good up move to close near 890 levels. Once
can expect to book profits at 915 level and put a trailing stop loss at 878.
This Week’s Picks
1. Our first pick for the week is ADANIENT. Stock has been consolidating and getting ready to break
out.
Current Market Price: 238.85
Recommended Action: Go Long in 234- 240 range
Stop Loss Price: 228
Target 1: 255
Target 2: 272
Timeframe: 1-2 Weeks
2. Our second pick for the week is HINDALCO. Good buying has been seen at 107 levels.
Current Market Price: 109.55
Recommended Action: Go Long in 106-107 levels
Stop Loss Price: 103
Target 1: 114
Target 2: 119
Timeframe: 2-3 weeks.
Disclaimer: This document has been prepared by technical analysis team of Marwah Financial®. This
document is prepared for assistance only and is not intended to be and must not alone be taken as the
basis for an investment decision. The user assumes the entire risk of any use made of this information. Each
recipient of this document should make such investigations as it deems necessary to arrive at an
independentevaluation of an investment in the securities of companies referred to in this document
including the merits and risks involved. The investments discussed or views expressed may not be suitable
for all investors.