Is 100 point rally in Dow Jones enough to take us past 5300??... Let's see. Midcap Banking space looks good

Dow Jones shot up around 100 points last night on the account of merger between Kraft Foods and Cadbury. This might give world markets a direction to move instead of trading in a range bound fashion. As mentioned in the blog yesterday Nifty took support from around 5225 level and it was advised to buy at that level and sell at 5265 ( which you can do today if Nifty opens gap up.)


Nifty View:

Now Nifty's 5150- 5160 level is becoming a strong support. Till 5150-5160 the index is a buy on every dip. A closing above 5300 will open gates for 5400-5450.






Stock View: Federal Bank


The stock tried to give a channel breakout today but it was an unsuccesful attempt. Buy this stock if sustains and closes above 274 for targets of 300 or Buy on dips to 260 with a stop loss kept at 256 for the above mentioned targets.




Stock view: IOB

Excellent converging pattern seen on charts Buy above 115.5-116 for targets of 122. The stop loss for this trade should be kept at 109.5.




Previous Stock Recommendations:

Brigade rocked hitiing a 20% circuit
Rel Cap and Uco Bank hold with stop loss
Wait for GVKPIL to breakout


Have a Nice trading day

Regards

Ankit