NIFTY OUTLOOK FOR 14 & REVIEW

ZIGZAG MOVEMENTS

Nifty’s fall continued for the Fourth day and Nifty lost about 4% during the week.  Technically, charts suggesting selling on any meaningful recovery. Nifty needs to close above 7650 to come out of the short term bearishness. There is a strong support around 7400 level , if breached, at 7200 level.  Nifty spot is expected to encounter resistance at 7500, 7540 and find support at 7420 7380, for Monday.  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 witness zigzag movements with alternate bouts of bullishness and bearishness. 

Nifty                               7460     -108

Review for Friday ::  Black Friday  … !!!

Market opened better following better Infy results and global cues but fell steadily with intermittent bouts of rise and closed with a huge loss of about 1.50%. Mid cap stocks suffered huge losses.  32 of Nifty stocks end in the red but broader market was quite negative with Advance Decline ratio at 1:6. IT, Pharma, Media, FMCG indices gained while Realty, PSU Bank, Inra, Metal and Energy  indices declined. ITC, TCS, Hindunilever  contributed more than 12 points to Nifty while L&T, HDFC, Reliance, ICICI Bank, SBI dragged  down Nifty by about 75 points .

 

Sun Pharma, HCL Tech, Dr Reddy, TCS, Hind Unilever   remained marginal gainers   among Nifty stocks while BHEL, NMDC, Jindal Steel, DLF, Hindalco   remained major  losers.

  

Aurobindo, Zee, Dr Reddy, Ranbaxy, Sun Pharma  remained  major gainers  among F&O stocks while Jain Irrigation, Unitech, PFC, Crompton Greaves  declined among F&O stocks. 

SENSEX PLUNGE 348 POINTS

 

The benchmark Sensex today frittered away early gains and tanked 348 points to log its worst weekly drop since December 2011 on disappointment over Narendra Modi government's maiden Budget and debt concerns in Portugal. In straight four days of decline, the 30-share Sensex has shed a massive 1,075.73 points, or 4.12 per cent. Investor wealth worth over Rs 5 lakh crore has been eroded in this extended sell-off. For the week, the BSE barometer has slumped 937.71 points, or 3.61 per cent. Realty, capital goods, power, metal, refinery and banking shares mainly dragged down the Sensex today. IT shares, however, saw buying interest after Q1 results by Infosys. The firm reported a 21.6 per cent y-o-y growth in consolidated net profit for the quarter ended June 30. Initially, the BSE index resumed better and touched a high of 25,548.33, showing a rise of over 175 points. Fresh concerns over Eurozone debt resurfaced as reports said Portugal's biggest listed bank, Banco Espirito Santo, missed debt payments. Coupled with Budget disappointment, the Sensex then succumbed to heavy selling and tumbled to a low of 24,978.33, before ending at over 1-month low of 25,024.35 -- a fall of 348.40 points or 1.37 per cent over Thursday. "Markets are disappointed on the fiscal consolidation front. Budget didn't speak anything about rationalisation of subsidies which was widely expected by most market players," said Rakesh Goyal, Sr. Vice President, Bonanza Portfolio. The 50-issue CNX Nifty of the NSE today also moved in a wide range of 7,625.85 and 7,447.20 before settling at 7,459.60, a net fall of 108.15 points or 1.43 per cent. "Adding to the negativity, weak rainfall in India during the ongoing monsoon season has raised concerns of a first drought in five years. There was also nervousness ahead of May IIP data and June CPI data, scheduled to be released later in the evening," said Jayant Manglik, President-retail distribution, Religare Securities. For the week, Nifty fell 292 points or 3.76 per cent -- its worst weekly drop in 16 months (since March 2013). Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 993.97 crore yesterday, as per SEBI data.

Among the S&P BSE sectoral indices, Realty fell by 5.16 per cent, followed by Capital Goods 4.75 per cent, Power 4.54 per cent, Metal 3.69 per cent, Oil&Gas 2.78 per cent and Bankex 2.68 per cent while IT rose by 1.42 per cent, Healthcare 1.09 per cent and Teck 1.42 per cent. Mid-cap and Small-cap indices also dropped by 2.81 per cent and 3.31 per cent due to fresh selling from retail investors. "Corporate earnings will drive the indices now given the budget is announced," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities. Market breadth turned negative as 2,217 stocks ended with lower, 710 stocks finished with gains while 79 ruled steady. Total turnover dropped to Rs 3,763.19 crore from Rs 5,134.93 crore yesterday.