TELECOM rally continues….

NIFTY has swept past congestion and aims for next resistance at 5370-390 levels. While Weekly charts are gaining strength on bearish divergence, Daily charts have gone past caution zone. Daily MACD lines are strong; this ensures that the rally is likely to continue.

TELECOMMUNICATION

TELECOM Sector ruled the show today. Doubts arise as to, while BHARTI and IDEA did not give big and RCOM even closing in Red. How is this sector leading? TELECOM Sector consists of Telecommunication Services and Telecommunications Equipment industry. Telecommunication Equipment has added more to existing strength. The leader of the Industry SIEMENS has swept past nearest resistance of 750 smoothly. The next resistance is far away at 860. Any weakness in this stock and price reaching value zone is a sure fire opportunity for a winning trade.

Telecom Services stocks have gaining further strength on the indicators, but has to reach value zone for any add on entries of new long trade entries.

HEALTH CARE

HEALTH CARE sector followed second in sector ranking today. Even here the Weekly chart is gaining bearish strength, while Daily chart is strongly bullish. SUN PHARMA is super strong here, whereas CIPLA and DRREDDY are mirroring the Index. All these three stocks can be added to watch list to trade long on weakness. Health Care equipments industry consisting of Hospitals is very strong, this industry has closed negative today. This is an opportunity to find long trades. Both APOLLO HOSPITALS and FORTIS are in value zone. Use MACD histogram up tick to trade long on these stocks. RANBAXY is weak here.

CONSUMERGOODS

CONSUMER GOODS Sector consisting Home Construction & Reality, Plastics and Detergents as a Sector is weak, with Reality Industry forming the major stocks in this Sector is witnessing huge selling pressure. Whereas Plastics and Detergents are strong. NIRMA has gained strength from weakness; it has to re-test lows before any renewed bullishness comes in. Jain Irrigation is strong, use upticks of daily MACD histogram to trade long in this stock.

ENERGY AND UTILITIES Sectors which were very weak and had no clear patterns on any levels and recommended to be kept of from trades by us in our previous post were the weakest Sectors today.

Among other weaker industries today, Fertilizer has very good chance of long trades as the Weekly chart of this industry is yet to retrace any bearishness. CORAMANDEL is a trade long stock on a daily MACD histogram uptick.

We have made a brief analysis using Sectors, Sub-Sectors and Industry Indices. Doing analysis in this way gives us a clear picture of what the stock is likely to do. Getting ourselves clear of it, we shall decide whether to trade, if so which stock to trade and so on. Top down approach of checking with the Sector, the same pattern with their Sub-sector and the respective Industry charts will narrow us in our search to trade the right stock. Then we find the stock which has similar patterns and take our trade.

So much for today, we have attached today's values for all the industries, sub-sectors and sectors on Free float. Happy trading.