NIFTY OUTLOOK FOR 26th & REVIEW

CAUTION @ HIGHER LEVELS

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

http://www.saaketa.com/AstroTechnicals.aspx

Week closed at the highest level and Nifty gained about 1.50% to close above 7350. Stop loss for Nifty may be enhanced to  7250 (on close basis). While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to  be cautiously optimistic ahead of Swearing in ceremony. However, in view of the steep rise, caution is advised at higher levels.

Nifty                               7367  +91

Review for Friday  :: PSU Banks in limelight… !!!

After being positive in the opening hour, all the gains got eroded by noon and picked up thereafter to close at the highest levels with a gain of about 1.50%. PSU Bank stocks were the star performners as SBI rose nearly 10% and PSU Bank index clocked in a gain of more than 8%. 36 of Nifty stocks gained and broader market too was bullish with Advance Decline ratio of 2.25:1. PSU Bank, Infra, Energy, Metal, Realty and Auto indices gained smartly while FMCG and Media indices declined. SBI, Reliance, ONGC, contributed more than 40 points to Nifty’s gain while ITC and HDFC Bank    dragged down by about 15 points.

 

SBI, Tata Power, Jindal Steel, PNB, MAruti   remained major gainers  among Nifty stocks while Hindalco, Kotak Bank, HDFC Bank, Infy and Indusind Bank   remained   losers.

  

Ashok Leyland,, Canara Bank, Jain Irrigation, Syndicate Bank,     remained major  gainers  among F&O stocks while IB Realestate, Mc Leod , Sun TV, Shriram Transport, Apollo Tyres  declined among F&O stocks. 

NEW PEAKS 

Equity benchmarks Sensex and Nifty today galloped to new closing peaks, logging their best single-day rise in 10 days, boosted by spurt in shares of SBI after earnings and heavy buying in power sector on hopes of a big push under the incoming Narendra Modi-led government. The indices also logged third straight week of gains. Both Sensex and Nifty have gained 10 per cent in three weeks. The BSE Sensex today spurted by 319 points, or 1.31 per cent, to end at a new historic closing high of 24,693.35 supported by buying in banking, refinery, capital goods and auto counters amid firm global markets. The Sensex surpassed previous record closing of 24,376.88 reached on May 20. The 319-point rise was its best single-day gain since May 13, 2014 when it increased by 320 points. Similarly, wide-based 50-issue CNX Nifty of NSE flared up by 90.70 points, or 1.25 per cent, to end at new closing peak of 7,367.10. It crossed previous peak of 7,276.40 (May 22).

Country's largest bank SBI, was the top gainer from the Sensex pack with a rise of 9.69 per cent despite decline in the Q4 net profit but asset quality showed signs of improvement. "SBI reported healthy performance on the asset quality front while operating performance came ahead of our estimates," said Angel Broking. RIL, ONGC, L&T, HDFC, Maruti Suzuki, ICICI Bank, Sesa Sterlite and M&M were among the 22 Sensex gainers. Investors heavily bought into power stocks, including NTPC and Tata Power, on reports that Modi-led NDA government is likely to harness solar power and give a fillip to development of offshore wind energy. Adani Power, Reliance Power, Power Grid and JP Power also hogged the limelight. Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Local equities continued to trade strong. It is expected that the new government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow." A clear mandate for the BJP has rekindled hope for structural reforms and better investment climate and the country's growth is likely to accelerate to 6.5 per cent in FY16, a Goldman Sachs report said today. 

 726 stocks log fresh 52-week high

As many as 726 stocks today hit 52- week highs on the BSE as the benchmark index Sensex recorded a new closing peak on hopes of a big reforms push under the incoming Narendra Modi-led BJP government.
Some of the prominent ones were: Ashok Leyland, Bank of India, Canara Bank, GVK Power, HCL Infosystems, IOB, JSW Steel, Maruti Suzuki, MTNL, NHPC, NTPC, PNB, REC, Reliance Power, SBI, Tata Power, Tata Comm and TVS Motor.
The BSE Sensex spurted by 319 points, or 1.31 per cent, to end at a new historic closing high of 24,693.35.
The index surpassed its previous record closing of 24,376.88 reached on May 20.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Local equities continued to trade strong. It is expected that the new government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow."
Among the 30 Sensex stocks, 22 ended the day in green with SBI leading the chart.
Out of the 13 BSE sectoral indices, 11 ended the day in positive territory led by power index.
In all, 2,267 stocks advanced, while 912 declined.
"Amid volatility, the benchmarks were seen registering decent gains on Friday and ended close to the day's high. In absence of any major domestic cue, positive global market and better than expected result from the PSU banking major SBI, kept the sentiments on positive side," said Jayant Manglik, President-retail distribution, Religare Securities.