NIFTY OUTLOOK FOR MONDAY & REVIEW OF FRIDAY

PROFIT BOOKING TOWARDS CLOSE

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Nifty gained further to close  above 6500, all time high, and Nifty gained more than 4% during the week. With an overbought position, caution is advised at higher levels as reasonable pullback is to be expected. Stop loss for Nifty long positions may be trailed to 6325. Nifty spot is expected to encounter resistance at 6565, 6600 and find support at 6485, 6430, for Monday. 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 be generally better during midsession  and could encounter profit booking towards close.

Nifty                               6527  +126

Review for Friday...Nifty at all time HIGH !!!

Market opened better and rallied further to close with a gain of about 2% as rate sensitive sectors and Bank stocks zoom wile defensive sectors such as IT and Pharma decline on a day when indices gain about 2%. 36 of Nifty stocks gained while  broader market was negative with Declines outnumbering Advances. Barring IT and Pharma, all other indices gained led by Realty, Bank, Infra, Energy, Metal. Index heavy weight, Reliance, which has been underperforming of late,  too gained smartly by more than 5%.

DLF, JP Associates, BHEL, Bank of Baroda, ICICI Bank stood out as major gainers among Nifty stocks while Dr Reddy, Wipro, Infy, Sun Pharma, Wipro declined.

 

DLF, Adani Enterprises, JP Associates, Yes Bank, IRB  remained major gainers among F&O stocks while Hexaware, Aurobndo, Tech Mahindra, Dr Reddy, Biocon  remained losers among F&O stocks.

STOCK INDICES @ NEW HIGH

Indian markets wrapped up the week in style today with the Sensex zooming to a new closing high of 21,919.79 and the Nifty galloping to yet another record close of 6,526.65 as FIIs continued to repose faith in an economy that is showing signs of stability ahead of general elections. A sharp drop in current account deficit (CAD) and easing inflation bolstered expectations that the economy will see a turnaround soon, amid hopes for a strong mandate for the newly elected government after polls next month, said traders. Investor wealth ballooned by Rs 85,000 crore today. Aggressive buying by Foreign Institutional Investors (FIIs) mainly helped the benchmark indices rise for the fourth day in a row. Yesterday, they bought shares worth Rs 1,272.93 crore yesterday as per provisional data. The BSE 30-share indicator resumed better and gradually improved further to a lifetime intra-day high of 21,960.89 before settling at 21,919.79, exhibiting a sharp rise of 405.92 points or 1.89 per cent. During the week, the Sensex has seen a spurt of nearly 800 points or 3.79 per cent. Yesterday, it had closed at 21,513.87, surpassing previous closing high of 21,373.66 set on January 23, 2014. BHEL, ICICI Bank, Axis Bank and Reliance Industries led the 22 gainers in Sensex. Realty, banking, capital goods and refinery counters saw heavy demand. The NSE 50-issue CNX Nifty also flared up by 125.50 points, or 1.96 per cent, to end at a new closing high of 6,526.65. It today hit a lifetime high of 6,537.80, crossing its previous record of 6,415.25 hit on December 9, 2013. IT and pharma stocks ended weak amid strength in rupee. Finance Minister P Chidambaram today said the fiscal and current account deficits are under control and the economy is more stable than it was 18 months ago. "After seven years, Nifty is walking comfortably into new highs. The current conditions are extremely conducive after a long time. Apart from the big political event in two months, corporate earnings are more important," said Raamdeo Agrawal, Joint MD, Motilal Oswal Financial Services. Overall market breadth was marginally negative as small-cap and mid-cap stocks attracted profit-booking.