NIFTY OUTLOOK FOR 7th DECEMBER

Recovery towards Close …!!!

Nifty lost for the Second day in the week and is below the stop level. However, weakness needs to be confirmed by a negative weekly close. Nifty spot is expected to encounter resistance at 6255,  6290 and find support at 6175, 6140 for  Thursday. While Global cues, Funds flow and Quarterly Results are expected to broadly guide the market movement, based on the present market position, market is expected to  have crucial session after opening and remain generally subdued to recover towards close.

Review for Tuesday, 05th October, 2013 :: Profit Booking in Bank Stocks   ..!!

Nifty                               6215         -38

Indices continued their fall for the Second day in succession and appear to be in profit booking mode, particularly in Bank stocks which have risen too fast. While Nifty has fallen more than 0.50% with 36 stocks falling among Nifty stocks, broader market was not bearish with Advances outnumbering Declines by 0.10%. IT and Pharma indices gained while Bank, Realty, Media and Metal indices declined. NTPC, TCS, Sun Pharma, Ranbaxy and Infy remained major gainers among Nifty stocks while SBI, JP Associates, PNB, DLF, Ambuja remained major losers. HDFC, ICICI Bank and SBI dragged down by more than 20 points while TCS and Infy contained the loss by about 10 points.

Among F&O stocks,  Divis Lab, Tech Mahindra, NTPC, PTC        remained major gainers  while IRB, Syndicate Bank, Federal Bank, Jub Food     remained  major losers.

Inputs provided by Dr B.Amaranatha Sastty, Astro Technical Analyst, Saketh Consultancy

SENSEX ANOTHER 80 pts DOWN

Erasing its initial gains, the benchmark Sensex today once again succumbed to profit-taking and fell by nearly 80 points to end at over one-week low level on selling in consumer durables, banking and metal counters. After reclaiming the 21,000 mark in opening trades, the bluechip index hit an intra-day high of 21,004.54 but failed to sustain the momentum as investors started booking profits. Persistent foreign capital inflows as well as confidence given by the Finance Minister P Chidambaram that the country's current account deficit will be contained below USD 60 billion in current financial year helped markets rise in early trade. However, the Sensex declined afterwards to 20,861.42 before finishing at 20,894.94, showing a loss of 79.85 points or 0.38 per cent from its Tuesday close. This is the lowest close since 20,570.28 on October 28. On Sunday, the Sensex hit record intra-day high of 21,321.53 and ended at all-time closing high of 21,239.36. Similarly, the NSE 50-share Nifty dropped by 38.00 points, or 0.61 per cent, to end at 6,215.15. Also, the SX40 index of MCX-SX, closed at 12,416.31, down 77.79 points. 

BANK STOCKS MAIN LOOSERS

After consumer durables, banking stocks suffered the most led by heavyweight SBI which tumbled by 3.40 per cent following its decision to hike lending rates by 0.20 per cent. Other lenders like ICICI Bank and HDFC Bank also fell. Other major Sensex constituents that ended in the red today include RIL, HUL, Bharti, Tata Motors and Tata Steel. However, IT shares like TCS and Infosys firmed up on account of stronger than expected results from Cognizant and a weak rupee that fell below 62-level against the US dollar. However, mid-cap and small-cap shares fared better as retail investors were seen buying these scrips, traders said.
Meanwhile, Foreign Institutional Investors (FIIs) continued their buying spree by investing net Rs 162.53 crore yesterday as per provisional data from the stock exchanges.
Besides SBI, major losers were Sesa Sterlite (2.50 pc), Jindal Steel (2.01 pc), Hindalco (1.87 pc), HDFC (1.54 pc), Tata Steel (1.51 pc), ICICI Bank (1.42 pc), BHEL (1.30 pc), HUL (1.26 pc), HDFC Bank (1.23 pc), Bharti Airtel (1.17 pc), RIL (1.14 pc), Tata Motors (1.08 pc), M&M (0.96 pc) and Bajaj Auto (0.84 pc). On the other hand, major gainers included NTPC (3.50 pc), followed by TCS (2.43 pc), Sun Pharma (1.74 pc), Infosys (1.25 pc) and Cipla (0.94 pc). Among the sectoral indices, S&P BSE-CD dropped by 2.19 per cent, followed by Bankex (1.87 pc), Realty (1.80 pc), Metal (1.31 pc), Oil&Gas (0.87 pc), FMCG (0.69 pc) and Auto (0.64 pc). However, S&P BSE-IT rose by 1.39 per cent, followed by Power (1.23 pc) and Teck (1 pc).