NIFTY OUTLOOK FOR 6th and REVIEW

FORENOON BETTER....PROFIT BOOKING TOWARDS THE END

Nifty resumed its uptrend in style to close with a gain of about 1%. It had breached previous day’s low and then rallied. Broader market was quite bullish indicating strong and upbeat sentiment with mid cap stock gaining from strength to strength. Further,  Nifty could face strong resistance around 7520 and get support too around 7300 mark..  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 generally better in the forenoon and  might witness profit booking towards close.

Nifty                               7474    +72

Review for Thursday :: Sensex above 25000  … !!!

After a day’ respite, Nifty continued its uptrend and closed with a gain of about 1%. Nifty , after the down move of the opening hour, rallied slowly and steadily till the close. 38 of Nifty stocks gained and broader market was quite bullish with Advance Decline ratio at 3:1. Buying interest continued in mid cap counters as they are expected to outperform large caps. Bank Nifty was the lone index to close in the red and all other indices led by Metal, Energy, FMCG, IT , Infra indices gained. Infy, Hind Unilever, Reliance contributed about 35 points to Nifty’s gain.

 

BPCL, SSLT, Hindalco, Hind Unilever, Cairn    remained major gainers  among Nifty stocks while M&M, HDFC Bank, Indusind Bank, Cipla, Bank Baroda  remained   losers.

  

Havells, BPCL, SAIL, India Cement, Rel Infra  remained major  gainers  among F&O stocks while UCO Bank, Exide, Crompton Greaves, Indusind Bank, M&M    declined among F&O stocks. 

SENSEX CLOSES ABOVE 25000

The Sensex closed above the 25,000 level and the Nifty index ended at a new high today powered by metal, power and oil & gas shares on hopes of a quick revival in domestic economy, amid strong expectations the European Central Bank will unveil a stimulus shortly. Buying was strong with 11 of 12 sectoral indices posting gains between 0.17 per cent and 3.33 per cent. Metal, oil&gas, power, FMCG, IT and capital goods led the surge. Persistent capital inflows from foreign funds into equity market and widespread buying by retail investors boosted the market sentiment, said traders. India's services sector expanded for the first time in nearly a year during May on rebound in new business orders. Foreign Institutional Investors bought shares worth a net Rs 192.56 crore yesterday, as per provisional data. The BSE Sensex resumed higher, but dropped to a low of 24,644.88. It later recovered sharply to settle at its new closing high of 25,019.51, a rise of 213.68 points or 0.86 per cent. It breached previous closing peak of 24,858.59 hit on June 3. 

The NSE 50-share Nifty also flared up by 71.85 points, or 0.97 per cent, to end at new peak of 7,474.10 -- surpassing its June 3 closing of 7,415.85. There is growing speculation that the European Central Bank (ECB) will ease monetary policy later today to support a fragile recovery, said traders. Metal and oil&gas prices usually go up after an economic stimulus on hopes some funds will come into such assets. Sensex-based counters like Tata Motors, Sesa Sterlite, ONGC, Infosys, HUL, RIL, ITC, Tata Steel, Hindalco, TCS, HDFC, Axis Bank, Tata Power, Wipro, Hero MotoCorp and Gail closed with sharp to marked gains. Banking stocks had a forgettable day as shares like ICICI Bank and HDFC Bank saw profit-taking. "We may see Sensex levels at 30,000 before budget," said Motilal Oswal, CMD, Motilal Oswal Financial Services. Meanwhile, Finance Minister Arun Jaitley will meet captains of Indian industry to elicit their views on the budget, which is likely to be presented in the first week of July.