NIFTY OUTLOOK FOR 20th & REVIEW

MIDSESSION SUBDUED

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Nifty snapped 3 day narrow winning streak and fell to close well below 6483. For Nifty to have meaningful retracement, it needs to correct further which would be confirmed on a close below 6475.  Nifty spot is expected to encounter resistance at 6525, 6560 and find support at 6440, 6405, 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 encounter zigzag  movements with better midsession and subduedness towards close.

Nifty                               6483  -41

Review for Thursday ::  General Bearishness  !!!

Market opened lower following global cues and after some pullback during midsession , fell once again towards close to close with a loss of more than 0.60%. 38 of Nifty stocks fell and broader market too was negative with Advance Decline ratio at 1:1.5. IT, Media and FMCG indices gained while Realty, Bank, Infra, Metal, Auto indices declined.

TCS, Hind Unilever, Cipla, Wipro, Sun Pharma  stood out as major gainers among Nifty stocks while DLF, BPCL, Ambuja Cement, JP Associates, Power Grid and PNB remained major losers.

IT stocks which corrected on Wednesday staged a pullback.

 

JSW Energy, Mc Dowell, Hexaware, TCS, Colpal,Aurobindo    remained major gainers among F&O stocks while M&M Finance, IB Realestate, Unitech, BPCL, Orient Bank   remained losers among F&O stocks.

SENSEX LOOSE 93 POINTS

The Sensex and the Nifty today closed at their weakest level in two weeks in line with a slump in global equity markets after US Federal Reserve signalled it would raise interest rates by the middle of 2015. The benchmark S&P BSE Sensex snapped its three-day gaining string and dropped 93 points to close at 21,740.09 -- the lowest close since 21,513.87 on March 6. HDFC and L&T led the 22 losers in the 30-share index. The wide-based 50-issue CNX Nifty of the NSE also dipped 40.95 points, or 0.63 per cent, to end below the 6,500-mark at 6,483.10. This is also its weakest since 6,401.15 on March 6. Total market breadth was negative as 1,534 stocks ended lower, 1,269 finished higher and 137 closed flat. American stocks fell yesterday night after Federal Reserve chair Janet Yellen said the time-frame for raising interest rates could be on the order of around 6 months after the stimulus ends. The Fed also voted to cut its monthly bond purchases by USD 10 billion to USD 55 billion. Brokers said the signal in hike in interest rates by Fed might affect foreign fund inflows, which drove domestic indices to lifetime highs recently. Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Yesterday the Federal Reserve gave indication that it may raise US interest rates from the middle of next year. If rates rise, then we could see capital outflows from emerging markets." The new time-frame is around 6 months earlier than what the markets had expected, according to HDFC Securities. A perceived slowdown in the Chinese economy also aggravated the situation further as all Asian markets closed in the red. Selling was seen in most of the segments as 9 out of 11 sectoral S&P BSE indices closed with losses while only IT, Teck and Healthcare finished with gains. TCS, Infosys and Wipro led IT gains after recent losses. Realty, capital goods, power, banking and metal counters were the worst hit. Cautiousness ahead of the RBI's policy meeting next month affected interest-rate sensitive scrips. In Asia, all major equity indices closed sharply down. Prominent European indices were trading about one per cent lower each in early trades.