Markets ended flat after a very choppy session today. They had gotten off to a strong start, but gave up gains on global uncertainties even dipping into the red for a while.
The Nifty closed just 17 points higher, and the Sensex shut shop at 15,832 up 82 points.
Technical Analyst Rajat Bose of rajatkbose.com is positive on Orchid Chemicals.
“After yesterday’s fall, there is hardly any meaning in pre-empting that we are going to embark on our intermediate uptrend or we are going to cross the 200-Day Moving Average (DMA) above 5,050. I have advised my clients that unless the Nifty successfully clears the supply zone between 5,050-5,200, which is a very significant resistance area, I would not be giving any investment buy call. Unless and until I see a clear bottom formation or the successful clearing of 5,200, I would not be initiating buy calls. There is no point trying to bottom fish and then you realize that it is going to fall even further. Even with the best of cues yesterday we could not sustain. So, I do not need any more cues for weakness to play on the short side,” said Rajat Bose.
Here’s how Rajat Bose views the stocks on board:
On Siemens and BHEL:
BHEL posted a three-month low if I am not mistaken. If BHEL were to cross Rs 2,000 now, only then we will say that BHEL has acquired strength and a bottom is in place. Unless that happens, selling might actually come in. On the other hand, the significant support is around Rs 1,550. Around that level, you might actually see some value buyers coming in to buy. In between, any rally is best sold off.
Regarding Siemens, it has almost run its full course on the downside. If the market were to really become weaker, it may actually go even further down. Between Rs 600 and Rs 580, there might be some support from buying coming in.
On Orchid Chemicals:
Orchid Chemicals recently had a staggered V-kind of a formation by which it is trying to move up. But it is now at a significant level of Rs 175-185. If Orchid clears these levels and stays above that for sometime or for at least 2-3 trading sessions, you would trust this rally. If you enter from a trading perspective, you would put your stop loss below Rs 167 and carry on. Otherwise, one should be very watchful at these levels. Some people who have entered earlier might be tempted to book profits between Rs 175-185.
On Essar Oil:
If Essar Oil manages to get past those levels, then only will it be really positive. Otherwise, it may come all the way down to test Rs 215 to Rs 210. This is on a short-term perspective. Otherwise, I am not very positive about Essar Oil at these prices.
Disclosure: It is safe to assume that my clients and I may have an interest in the stocks/sectors discussed.
Source: Moneycontrol.com
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