NIFTY OUTLOOK FOR 17th DECEMBER & REVIEW

RECOVERY IN CLOSING SESSION

Market has been falling for the last Five days and appear oversold on intraday charts and hence some pullback is on cards before further move. Sell on Rise policy may be followed by traders with a stop loss of 6250 on close basis. Nifty spot is expected to encounter resistance at 6195, 6230 and find support at 6115, 6080, for Tuesday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position,  market is expected to witness zigzag movements with bearish bias in the forenoon and some pullback towards close.

Nifty                               6155     -13

Review for Monday, 16th December, 2013 ::  Minor Decline amid Narrow Movement ..!!

Markets fell for the Fifth day in succession and closed with a minor decline amid narrow movement. Market traded in a narrow range and was lack luster. IT, Media, Pharma indices gained while Energy, FMCG, Auto indices declined. 20 of Nifty stocks gained and broader market too was  negative with Advance Decline ratio placed at 1:1.4. Infy, Power Grid, Tata Power, Coal India and Axis Bank gained while M&M, Jindal Steel, Sun Pharma, Reliance, Bharti remained major losers among Nifty stocks.

Higher Inflation numbers leave little scope for any positives in RBI Policy. Market appears cautious ahead of crucial events of RBI Policy and US Fed meet later this week.

Among F&O stocks,  Aurobindo, SSLT, OFSS, PFC and MRF remained  major gainers  while IRB, Godrej Industries, Tata Motors DVR, Jindal Steel, M&M, Adani Power remained  losers. 

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @sastry.saaketa@gmail.com

09848014561

SENSEX DOWN FOR THE 5th DAY IN A ROW

The benchmark Sensex fell for the fifth day in a row and lost 56 points in lacklustre trade today as inflation picked up pace, strengthening chances of an interest rate hike by the Reserve Bank later this week. Local indices dropped as Asian stocks declined ahead of the US Federal Reserve meeting starting tomorrow while investors assessed when tapering of the stimulus would start. Heavyweight Reliance Industries and HDFC contributed the most to losses on the Sensex, while Infosys and ICICI Bank gave it support. Jindal Steel, Mahindra & Mahindra and Sun Pharmaceuticals were the biggest losers. Oil & gas shares led four of the 12 BSE sectoral indices lower even as the IT index put up a strong showing after the rupee's recent weakness against the dollar. Shares of GlaxoSmithKline Pharmaceuticals closed 18.6 per cent higher after UK-based GlaxoSmithKline Plc announced an open offer to increase its stake in its Indian subsidiary. The S&P BSE Sensex opened little changed from Friday's close and traded in a range of 20,637.77 to 20,764.52. It ended at 20,659.52, down 56.06 points or 0.27 per cent. The index was at the lowest level since November 28. The 50-share CNX Nifty on the National Stock Exchange fell 13.7 points, or 0.22 per cent, to 6,154. The SX40 on the MCX Stock Exchange closed 29.92 points lower at 12,285.28. Wholesale price inflation climbed to a 14-month high of 7.52 per cent in November. Last week, the government said retail inflation soared to a nine-month high of 11.24 per cent and factory output shrank 1.8 per cent. "WPI inflation rose more than expected...Firm underlying inflation pressures and sticky inflation expectations pose upside risks to inflation. Another rate hike from the RBI, therefore, seems to be in the cards," HSBC said in a note. The RBI is scheduled to review the monetary policy on December 18. It hiked the key lending rate by 0.25 per cent in each of it two previous policy reviews to contain inflation. "The RBI's interest rate decision and US Fed meeting outcome will be announced mid-week. The markets are expected to remain volatile," said Milan Bavishi, Head Research at Inventure Growth and Securities.