NIFTY OUTLOOK FOR 17 & REVIEW

FORENOON BETTER

Nifty                               8390  +32

Nifty traded with positive bias through out the day and closed at the highest level for the week and week closed with a gain of about 0.60%. Nifty has been moving in a narrow range of 8300 and 8420 for the last Eight  trading sessions and a clear breakout / breakdown appears imminent in a day or Two.    If it breaks out on the upper side(closing above 8400), Nifty could go upto 8500 / 8550.  Short term trend continues to remain positive  and stoploss  may be  continued at  8300 (on close basis).  Nifty spot is expected to encounter resistance at 8430,, 8465 and find support at 8350, 8315 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 be generally better in the forenoon session.

MARKET CLOSE ON RECORD HIGHS

Stock market indices today scaled record highs on sharp fall in wholesale inflation, persistent foreign capital inflows and good bluechip earnings with benchmark Sensex rising 106.02 points to end at fresh closing peak of 28,046.66. Similarly, buying mainly in realty, metal and refinery counters lifted the NSE Nifty index by 32.05 points, or 0.38 per cent, to end at new closing high of 8,389.90. The wholesale price inflation dropped to a 5-year low of 1.77 per cent in October due to fall in food prices. The Wholesale Price Index (WPI) based inflation was at 2.38 per cent in September and 7.24 per cent in October 2013. This data comes after easing of consumer price index. "We expect that milder-than-expected inflation and low industrial growth are strong reasons to expect a 25-bp policy rate cut at the RBI's coming 2nd December monetary policy meet," said a Anand Rathi Institutional Research report. Besides, data showing that Foreign Portfolio Investors (FPIs) buying shares worth a net Rs 690.61 crore yesterday, also gave a boost to the buying momentum. "News flow both domestic and globally has been in favour of equity markets and that makes Indian markets one of the favourite destinations for the flow of risk investments," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio. In bluechip earnings, State-run State Bank of India posted 30.5 per cent growth in net profit at Rs 3,100.41 crore for the quarter ended September 30, pushing its shares up by 2.55 per cent. The BSE Sensex resumed higher at 27,949.54 and shot up further to 28,093.23 before concluding at all-time closing high of 28,046.66, a gain of 106.02 points or 0.38 per cent. The CNX 50-share Nifty also firmed up by 32.05 points or 0.38 per cent to all-time closing high of 8,389.90 after touching a high of 8,400.65.