EUROPEAN BULLS ARE ROARING...THE BULL PARTY MAY CONTINUE!

EUROPEAN BULLS PUT UP A BRAVE FIGHT.

With the Budget out of the way, we are back in synergy with the global indices. The problem which haunted the world just before the Budget was the sovereign debt default by Greece. But it seems Greece may not default on sovereign debts after all.

The FTSE made a high at 5600 on Jan 11, 2010 which was retested on Friday and the index closed bang on 5600 levels.The concern however is that the rally has taken place on low volumes.The technical indicators, particularly the RSI is showing a mild negative divergence.This may stall the bull run, if not stop it.

The DAX is falling only a few points short of the high made in Jan 2010 at 6094 but hasn't crossed it. The CAC 40 has risen on good volumes but is still 5% away from the high made in Jan 2010. The technical indicators are favouring the bulls across Europe. 

SENSEX MAY CONSOLIDATE.

As mentioned in last few posts, the SENSEX has retraced its fall till 17000 odd levels but was not able to cross it. The view was to generate cash as there was global uncertainty regarding the problems in Europe. That seems to have been solved for the moment.

The valuations of the Large caps are starting to get stretched. The market may oscillate in the range of 16700-17000 as the midcaps take centrestage.For Nifty the corresponding levels are 5000-5100. If the range gets broken on the upside we can target 17500 and 5250 respectively in the near future.

Have a great trading week,

Regards,
Rahul T.

FOR SOME STOCK SPECIFIC UPDATES FOR THE WEEK..........REFER TO READ MORE BELOW.

RAYMOND LTD


The stock has hogged the limelight ever since the promoters have declared their intentions of developing the massive land at Thane (140 acres). The company has 600 crores cash on books which translates into over 100rs cash per share.


Technically, the stock has formed an INSIDE DAY ( Such bar patterns are formed when the range of the stock for 2-3 session lies within the range of the previous session) Such patterns normally precede a change in trend. Besides the stock trades at the lower end of the channel and was up with good volumes.

BUY FOR A TARGET OF 245-250 WITH A STOP LOSS AT 215 ( TRADERS ). INVESTORS CAN BUY THE STOCK WITH A LONG TERM PERSPECTIVE.








BOC INDIA LIMITED.


The company is an 89% subsidiary of BOC which is now a part of Linde group, Germany which is a significant player in industrial gases and medical gases business. Besides the company is into project engineering.


The interesting point to note is that almost 2 years back the company came up with an offer for delisting at Rs. 200.and it could manage to get just 1% short of the the target of 90%. The recent volumes in the counter are hinting at a second attempt

Technically the stock has never closed above 220 odd levels over the past 18 years  (Find the monthly chart attached below ). If that is crossed the technical targets can be as high as 300-320 ( unless the company meddles it with an offer around Rs.250 )


The stock is a strong buy at every level :)