NIFTY OUTLOOK FOR 8th

 SECOND HALF BETTER

 Nifty lost for the Third day in the week and Bears appear to be tightening the grip. Now, it is unlikely that the week could close in the positive. Hence, Short term trend is Down while Intermediate trend continues to be Up. “Sell on Rise” with 6300 as Stop and Reverse.. Nifty spot is expected to encounter resistance at 6225,  6260 and find support at 6150, 6115 for  Friday. 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  witness zigzag movements with better Second Half. 

Review for Thursday, 07th October, 2013 :: Selling at Higher Levels    ..!! 

Nifty                               6187         -28

Indices continued their fall for the Third day in succession and appears that short term top is in place 32 of Nifty stocks have fallen and broader market too is negative with Advance Decline ratio placed at 1:1.3.   IT, Metal  and Pharma indices gained while Bank, Realty, Infra, Energy and Auto indices declined. Tata Steel, HCL Tech, Hindalco, Infy and TCS remained major gainers among Nifty stocks while Bank Baroda, DLF, BHEL, Axis Bank, BPCL remained  major losers. ICICI Bank, Reliance dragged down  Nifty by about 20 points while Infy, TCS and Tata Steel contained the loss by about 10 points.

Among F&O stocks,  Tata Steel, Sail, HCL Tech, CESC  remained major gainers  while India Cement, Unitech, Bank of Baroda, HPCL, Shriram Transport     remained  major losers

Inputs provided by Dr. Bhuvanagiri Amaranatha Sastry, Astro Technical Analyst

S&P WARNING TRIGGERS SELLING

SENSEX ANOTHER 72 POINTS DOWN

After rising 248 points in early trade, the Sensex today surrendered all gains to close 72 points down at a fresh 1-week low on heavy selling after rating agency S&P's warning that India could be downgraded if the next government fails to reverse slide in economic growth. A weak rupee and tepid global cues ahead of US GDP growth data and European Central Bank's rate decision, also affected the domestic market sentiment. Shares of Realty, Consumer Durable, Banking, Power, PSU, Capital Goods and Auto fell while IT and metal rose. The Sensex opened higher and moved up to a day's high of 21,142.85 on initial buying on the back of capital inflows. However, it declined afterwards to 20,797.06 before ending at 20,822.77, registering a loss of 72.17 points, or 0.35 per cent, as soon as news of S&P ratings filtered in. This is Sensex's lowest closing after 20,570.28 on October 28. The Sensex has now lost over 417 points in the past three days in stark contrast to the jubiliant mood after the index closed at all-time high of 21,239.36.on Sunday. Similarly, NSE index Nifty fell by 27.90 points to end at 6,187.25. Also, SX40 index of MCX-SX fell by 23.07 points.

S&P WARNING

The S&P, which affirmed the rating on India at 'BBB-/A-3' and retained negative outlook, triggered a wave of selling in the last 2 hours as investors were spooked by downgrade fears. "Markets showed signs of panic selling in the afternoon. While the rating agency affirmed the current rating, it warned of a likely downgrade in 2014 if the new government fails to reverse India's low growth," said Milan Bavishi, Head Research, Inventure Growth and Securities. India, which grew by over 9 per cent for three years before the 2008 global financial crisis, is facing slowdown. The growth rate fell to a decade low of 5 per cent in 2012-13.

TOP LOOSERS

Among the 30 Sensex constituents, 17 stocks fell led by RIL, SBI, ICICI Bank, BHEL, Bharti Airtel and Tata Motors. Traders said investors booked profits in the intra-day upmove. However, TCS, Infosys, ITC, HUL and Sun Pharma gained. The rupee also fell to the lowest level in 5 weeks by plummeting to 62.73 per dollar and was last trading at 62.5. In Asia, barring Taiwan, which moved up marginally, other indices of China, Hong kong, Singapore, Japan and South Korea declined. European stock markets also moved lower.