15th March 2010 :- It was a boring week as far as the stock movement was concerned. After the excitement of Budget, it was back to basics as indices consolidated in an extremely narrow range. Nifty’s movement was confined to only about 50 points and that’s hardly 1% intra-week range. Significantly markets are consolidating at the higher end of the trading range of past 4-5 weeks and that suggests inherent bullishness. March is usually a sideways or negative month as domestic liquidity dries on account of year ending adjustments. So, a sideways move on the higher side signifies strong undercurrent and we might see a strong up move once we are through with current financial year. FIIs continue to pour in a lot of liquidity and that would keep bulls interested. Domestic insurance companies usually garner large amount of premiums during Jan to March period and they would normally be sitting on significant pile of funds now. Some of that liquidity might have gone into bailing out FPOs of NMDC and NTPC. But now that these issues are out of the way some of this liquidity could flow into the secondary markets. Global markets are also treading at the higher levels and in fact Nasdaq is at its 18 months’ high. Next week, the advance tax figures could impact the stock prices and it seems that most of the bigger names would be positively impacted. Banking stocks could seek higher levels and technically too the heavyweights like ICICI and SBI are on the threshold of decent breakouts. Higher targets of around 985 to 1020 and 2150-2180 are possible for ICICI and SBI. RIL is another heavyweight that seems to be preparing for a big up move in coming weeks. The charts suggest that strong accumulation is on between 980 and 1030. Stock is likely to target 1120-1140 in coming weeks. Nifty is likely to target 5200-5220 in coming week while strong support is likely around 5075-5080.

For the next week one can buy Ranbaxy (463), JSW Steel (1180) and Cox and Kings (474). Ranbaxy seems to have completed its corrective move and could target Rs 480 and 494 while JSW Steel looks set to hit new highs. Keep a stop loss of around 455 for Ranbaxy and 1158 for JSW Steel. Cox and Kings has seen smart accumulation since its listing and is likely to spurt anytime now. Indicative targets are Rs 525 and Rs 560. Other stocks that could look up are Educomp, Jindal SAW, Century Text, Yes Bank, CESC, Colgate, IDFC, PFC and REC.