NIFTY OUTLOOK FOR 14 & REVIEW

FORENOON BETTER

Nifty                               7884  +24

Nifty opened lower following global cues but gained significantly from lower levels to close in the green. Nifty appears to have taken support around 7800 level and would become further weak only when it  closes below 7800. Nifty spot is expected to encounter resistance at 7925,, 7960 and find support at 7845, 7805 for Tuesday. 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 be generally better in the forenoon and could experience profit booking in Second half of the day, particularly towards as Wednesday is a trading holiday in view of Maharashtra elections.

SENSEX REBOUNDS 87 Pts

The benchmark Sensex today recovered by nearly 87 points to end at 26,384.07 boosted by fag-end buying in metal, banking, IT shares coupled with positive European cues. The BSE Sensex resumed lower at 26,275.07 and then fell further to a two-month low of 26,092.69 on initial selling in key sectors as India's industrial production growth remained subdued in August. Worries over foreign capital outflows and sharp fall in US markets last Friday also weighed. However, the index recovered afterwards to 26,443.16 before concluding the day at 26,384.07, showing a gain of 86.69 pts or 0.33 per cent. Better-than-expected Chinese trade data and crude oil prices falling to near 4-year lows also provided some support. The Sensex had lost 339.90 points, or 1.28 per cent, last Friday on profit-booking and Eurozone growth worries. Like the Sensex, the NSE 50-share Nifty gained 24.30 points, or 0.31 per cent, to finish at 7,884.25. "Volumes continued to falter and remained lower than Friday's trading session. PSU Banks, Metal and Energy stocks remained the top performing sectors while Realty, Pharma and FMCG faced the maximum selling pressure in the day," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. Market participants are eyeing monthly Consumer Price Index (CPI) data and quaterly earnings of Reliance Industries. These are expected to set the tone for trading tomorrow. Most Asian stocks ended lower as concerns about global economic growth remained. Key benchmark indices in China, Singapore, Taiwan and South Korea fell 0.36-2.84 per cent while the barometer in Hong Kong inched up 0.24 per cent. Meanwhile, European makets witnessed a strong rebound and were trading positively with France, Germany and UK indices moving up 0.05 per cent to 0.48 per cent. Locally, Foreign Portfolio investors (FPIs) sold shares worth net Rs 719.77 crore last Friday as per the provisional data from stock exchanges.