COUTIOUSNESS AHEAD RBI POLICY...

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Nifty fell sharply erasing the weekly gains of earlier Four days and closed nearly flat for the week. Once again it closed below 6300 mark unable to decisively pierce the strong resistance zone of 6350. PSU Banks and rate sensitive stocks were nervous ahead of RBI Policy early next week. Nifty spot is expected to encounter resistance at 6305, 6340 and find support at 6225, 6190, for Monday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to be cautious ahead of RBI policy with subdued forenoon session and mild recovery towards close.

Nifty                               6267     -79

Review for Friday, 24th January, 2014 ::  All round Bearishness.... !!

Market opened weak following global cues and after initial pullback, it cracked sharply and could not bounce back and finally closed with a loss of about 1% and gave up all the weekly gains and ended flat for the week. 42 of Nifty stocks ended in the red and broader market too was quite bearish with Advance Decline ratio at about 1:3. All sectoral indices fell led by PSU Bank, Realty, Metal, FMCG and Media. Ranbaxy fell by about 19% following adverse news. JP Associates, PNB, Ambuja Cement, DLF and Bank of Baroda were the other major losers among Nifty stocks whil;e Asian Paints, NMDC, NTPC, Grasim and HCL Tech remained gainers.

Among F&O stocks M&M Finance, Dabur, Asian Paints, NMDC     gained while Ranbaxy, Biocon, PFC, Bank of India, Orient Bank   declined .