NIFTY OUTLOOK FOR 3rd & REVIEW FOR 2

ZIG ZAG MOVEMENTS

Volatility returns to market and Nifty made an intraday move of more than 150 points as against an average of about 45 points in the last 7 trading sessions. Market move was deceptive as it went up in the morning and came down heavily in second half to close with a loss of more than 1% , off from day high by about  2.5%. Big move being expected reversed the short term bullish trend. To confirm the move, nifty needs to have one more negative close.  Nifty spot is expected to encounter resistance at 6260, 6295 and find support at 6185, 6150, for Friday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to witness zigzag / volatile movements with alternate bouts of rise and fall. 

Nifty                               6221     -81

Review for Thursday, 02nd January, 2014 ::  
Volatility returns with Vengeance and Heavy selling in Closing Session ..!!

Volatility returns to market as Bears overpowered bulls who were trying to take charge in the forenoon session and market ended up with a loss of more than 1%. 44 of Nifty stocks closed in the red and broader market too was quite negative with Advance Decline ratio placed at 1:2.3. IT index was the only one to close in the green while Infra, Realty, Bank and FMCG indices fell sharply.  Power Grid, TCS, , Infy, Sun Pharma and Maruti gained among Nifty stocks while IDFC, JP Associates, PNB, Tata Power, L&T ended up as major losers among Nifty stocks.

Among F&O stocks,  Arvind, Power Grid, Ashok Leyland, OFSS, Divis Lab         remained  major gainers  while Century Textiles, IB Realestate, HDIL, PTC and RCom  remained losers among F&O stocks.

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

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

09848014561

SENSEX RECORDS BIG FALL IN SIX WEEKS

The benchmark Sensex had its biggest drop in six weeks today and fell 252 points to end below the 21,000 level after a late bout of profit booking wiped out the day's gains. It was the second straight loss for the index in as many days in the new year as 11 of the 12 BSE sectoral indices declined, led by realty, capital goods and power stocks. The IT sector index gained moderately. ITC, Larsen & Tourbo, ICICI Bank and Reliance Industries together contributed 131 points to the drop in the Sensex. BHEL, Tata Power and Coal India led 25 index shares down, leaving only five gainers. The S&P BSE Sensex opened higher and climbed almost 200 points to 21,331.32 in early trade. The decline started in the afternoon as the index slid to the day's low of 20,846.67, a drop of 485 points from the day's high. The Sensex ended at 20,888.33, a decline of 252.15 points or 1.19 per cent. It was the biggest fall since November 21, when it lost 406.08 points. The Sensex was back below the 21,000 mark after two weeks. The broader 50-share CNX Nifty on the National Stock Exchange dropped 80.50 points, or 1.28 per cent, to 6,221.15. "Nifty opened on a strong note and surged to high of 6,358. However, profit-booking at higher levels was seen in latter part of the day," said Nidhi Saraswat, Senior Research Analyst at Bonanza Portfolio Ltd. "European and Asian indices were also weaker and further dampened market sentiment." Global stock markets were mixed after weaker manufacturing data in December indicated China's economy might be slowing. India's manufacturing sector decelerated marginally last month amid a slowdown in domestic order flows. Recently favoured second-line stocks suffered losses on profit-booking by retail investors. The Mid Cap and Small Cap indices fell 1.77 per cent and 2.03 per cent, respectively. The IT index gained as Infosys, TCS and Wipro advanced amid the rupee's depreciation against the dollar and an improvement in the US economy, their biggest market.