NIFTY OUTLOOK FOR 19th DECEMBER

NOW...US FED DECISSION HOLDS KEY...

There was total change in the sentiment as RBI did not raise the rates as feared by market and the decision came as a pleasant surprise. If US Fed too does not hurt market sentiment, bullish sentiment would once again return to the market. One more positive close is necessary to confirm the above. It is better to wait for confirmation to initiate long positions. . Nifty spot is expected to encounter resistance at 6265, 6300 and find support at 6180, 6045, for Thursday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position,  opening  would be influenced by FOMC decision  which if not negative, Wednesday’s sentiment would continue and one more positive close would reinforce short term bullishness.  Midsession is expected to be better and profit booking could be expected towards close.

Nifty                               6217     +78

Review for Wednesday, 18th December, 2013 ::  Rbi’s Status quo reverses Bearish Sentiment ..!!

Market bounced back with vengeance snapping 6 day losing streak as RBI did not raise the rates as expected by market. Rate sensitive sectors such as Infra, Auto gained along with Bank , Energy, Bank stocks. There was a total change in the sentiment as market got unexpected positive surprise from RBI. All sectoral indices gained as 47 of Nifty stocks gained and broader market too was positive with Advance Decline ratio was placed at 2:1. BHEL, DLF, PNB, Indusind Bank and Bajaj Auto stood out as major gainers while Jindal Steel, SSLT, Ultra cement declined.

IF  FOMC meet decision on QE tapering also favours market, it could head towards a new high too.

Among F&O stocks,  Biocon, HDIL, Orient Bank, Canara Bank, and DLF       remained  major gainers  while GSK Consumer, Jindal Steel, Glenmark and Dabur        closed in the negative.