Stock market research report 8.11.2010

From Our Technical Desk

Bullish gap intact

Nifty opened with a gap up once again on Thursday and rallied steadily for the remainder of the day to register an all-time high closing for the index. Nifty has now closed above the 6300 mark is only a few points off from the all-time intraday high of 6357. The momentum oscillators are in bullish territory, the daily MACD has also triggered a buy crossover. Market wide breadth was in favor of advances. Nifty is trading in a rising trend channel and unless that channel is intact one can expect Nifty to test our medium term bias.

BSE Auto

The index has gone past the previous swing high indicating that the bullish momentum is still strong and one can look for targets in range of 10550-10700.

From The Dealing Desk

Trading Ideas

• Remain stock specific from current levels.

• Trading ideas which we like are KFA (Target Rs88), Ranbaxy (Target Rs668), Jindal Saw (Target Rs248) and Apollo Tyres (Target Rs80). Traders maintain stop loss accordingly.

Investment Ideas

• Mahindra & Mahindra: CMP @ Rs778 (Target Rs 880)

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