NIFTY OUTLOOK FOR 10 & REVIEW

RECOVERY IN CLOSING SESSION …!!!

Nifty                               7860  -101


Nifty opened lower following global cues and traded with negative bias through out the day and closed with a loss of 100 points and Thursday’s upmove was negated. Barring IT and Pharma all other indices closed in the negative. Nifty closed below 7900 level and below 50 DMA but is above the key support level of 7800. Nifty spot is expected to encounter resistance at 7900,, 7940 and find support at 7820, 7785 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 trade in a zigzag manner with subdued midsession and recovery towards close.

SENSEX TUMBLES ON GLOBAL CUES

The BSE benchmark Sensex today tumbled 340 points, its biggest fall in over two weeks, due to sharp profit-booking amid weakness overseas on worries about growth in Euro area and disinflation risks, but Infosys bucked the trend and surged 6.68 per cent on smart Q2 earnings. The 30-share barometer, which had gained 390.49 points yesterday, fell by 339.90 points, or 1.28 per cent, to 26,297.38, with all the sectoral indices, except IT and Teck, ending in negative zone with losses up to 4 per cent. This is Sensex's biggest single day fall in over two weeks. This also marks the third straight weekly fall of the index. On similar lines, the National Stock Exchange index Nifty struggled to maintain the 7,900-mark and ended down by 100.60 points, or 1.26 per cent, at 7,859.95. 

"Indian equity markets saw sharp profit booking today with Nifty erasing gains made in previous session and closing at 7859.95. The weakness was a result of worries about growth in Euro area and disinflation risks which were reiterated by ECB president Draghi," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities. Of the 30 Sensex shares, 23 shares ended with losses led by Tata Motors (down 5.3 per cent), Hindalco (4.79 per cent), Sesa Sterlite (4.60 per cent), Tata Steel (4.03 per cent) and Mahindra and Mahindra (3.59 per cent). However, shares of IT major Infosys surged 6.68 per cent after the company posted 28.6 per cent jump in consolidated net profit for the quarter ended September 30. Sectorwise, the metal index suffered the most by losing 4.11 per cent, followed by auto index by 2.78 per cent, FMCG index 2.56 per cent, Banking index closed 1.80 per cent lower. "The sentiments were down from the beginning in reaction to statement made by two Fed officials that the Federal Reserve will probably start raising interest rates around the middle of next year. Even better than expected results from IT major, Infosys Ltd, failed to cheer the market," said Jayant Manglik, President-retail distribution, Religare Securities. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 20.89 crore yesterday, as per provisional data.