MARKET OUTLOOK FOR 12th November, 2013 & REVIEW FOR 11th

Closing Recovery from  Oversold Level …!!!

Nifty lost for the Fifth day and appears oversold for short term.  Hence, Short term trend is Down while Intermediate trend continues to be Up. Stop loss for Nifty short positions may be trailed to 6180 on close basis.. Nifty spot is expected to encounter resistance at 6115,  6150 and find support at 6040, 6015 for  Tuesday. While Global cues, Funds flow and Quarterly Results are expected to broadly guide the market movement, based on the present market position, market is expected to  witness zigzag movements with subdued midsession and recovery towards close as market is in oversold level.

Review for Monday, 11th October, 2013 :: Bears tighten grip further    ..!!

Indices continued their fall for the Fifth day in succession as Bears tighten their grip further. Nifty closed below 6100 mark and Sensex below 20500 level. 42 of Nifty stocks have fallen and broader market too is negative with Advance Decline ratio placed at 1:1.7.   Media, Pharma and IT indices gained while Realty, Bank, Infra, Energy and FMCG indices declined. Dr Reddy, Cairn, Tata Steel, Maruti and HDFC Bank  remained major gainers among Nifty stocks while Hindalco, Axis Bank, ACC, Indusind Bank remained  major losers. L&T, Axis Bank, Reliance  dragged down  Nifty by about 20 points.

Among F&O stocks,  India Cement, Tata Communication, Adani Enterprises, Zee Entertainment, Apollotyre  remained major gainers  while HDIL, Dena Bank, GMR Infra, Yes Bank, FRL     remained  major losers.

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @

SENSEX DROPS TO FOUR WEEK LOW

 The benchmark Sensex fell 175 points to the lowest level in almost four weeks today amid increasing fears the US Federal Reserve would start tapering its stimulus programme after better-than-expected jobs data. The index declined for the fifth straight day even as data showing exports in October rose at the fastest pace in two years. Sentiment was also dented as the rupee fell below the 63-level against the dollar.

The Sensex opened lower and hovered in a range of 20,453.15 to 20,672.53 before ending at 20,490.96, a fall of 175.19 points or 0.85 per cent. The index is at the lowest level since ending at 20,415.51 on October 17. It has plunged 748.40 points in the five sessions since the closing peak of 21,239.36 during the special muhurat session on November 3. The 50-share CNX Nifty dropped 61.95 points, or 1.01 per cent, to 6,078.80. The SX40 index on the MCX Stock Exchange ended 93.4 points lower at 12,180.24. Brokers said the market was also under pressure as the rupee fell to two-month low of 63.44 against the dollar. A depreciating rupee could slow capital inflows and deter the Reserve Bank from easing liquidity curbs further. India's exports in October rose 13.47 per cent to USD 27.27 billion from a year earlier while imports dipped 14.5 per cent, helping to narrow the trade deficit. Hindalco, Larsen and Toubro and ONGC were the major losers as 24 of the 30 Sensex shares declined. Reliance Industries and Tata Motors were the biggest drag on the index. Realty and capital goods led 10 of the 13 BSE sectoral indices lower.

RUPEE AGAIN DECLINES

The rupee tumbled 77 paise to an almost two-month low of 63.24 against the dollar today as the trade deficit widened from a month ago and the US currency strengthened after encouraging jobs data renewed fears of stimulus tapering. Sustained capital inflows could not stem the rupee's decline, a forex dealer said. It fell for the fourth straight day to end at the lowest level since 63.38 on September 18. At the interbank foreign exchange market, the rupee opened lower at 63 a dollar from the previous close of 62.47 and recovered to a high of 62.93.
However, it dropped to a low of 63.44 amid heavy dollar demand from importers, mainly oil refiners, and weak equities. The rupee closed at 63.24, a fall of 77 paise or 1.23 per cent. In four sessions, it has slumped 162 paise.