"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 04.06.2012 TO 10.06.2012"

At the close, the benchmark 30-share index, BSE Sensex lost 253.37 or 1.56% at 15,965.16 with 27 components posting drop. Meanwhile, the broad based NSE Nifty fell by 82.65 or 1.68% at 4,841.60 with 49 components posting drop.
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: With the Nifty breaking the supports of 4880 and moving down further, traders will need to watch if the Nifty can now hold above the previous lows of 4800. A close below 4800 would lead to a resumption of the downtrend that began in early May 2012”.
CANARA BANK SECURITIES (CanMoney): For the next week News flow from euro-zone to dictate near term trend on the domestic bourses as risk aversion arising from euro-zone debt worries may rattle global market sentiment and in turn to our market”.
FAIRWEALTH SECURITIES: “In the next session, 4830 may act as crucial level for Nifty, if sustained below 4830 Nifty may previous low of 4788 and expected to test 4747. However, 4888 and 4930 may act as strong resistance level for Nifty in the next session. Banknifty has crucial support at 9130-9170 range, if sustained below this range it may test 9005 level. 9460 and 9600 are strong resistance levels”.            
BONANZA ONLINE: Nifty is facing resistance in range 4950-5020 and showing support from lower levels in range 4780-4800 level. Nifty’s trend is bearish as it is trading below 20- DMA of 4930. If Nifty holds 4900 levels then recovery may be seen. For trading during the coming sessions, trend deciding level is 4900. If Nifty shows strength above 4900 levels then we may see rally till 4950/5050/5125. If Nifty doesn’t sustain above 4900 levels then selling pressure till 4790/4750/4700 may also be seen”.
Duration
Action
Entry Zone (NF)
For Target of
Stop Loss
For Monday
Sell
4820-4840
4760
4860
For the Week
Sell
4800-4850
4730-4690
4880
VENTURA SECURITIES LIMITED:On Monday (4854-4867)-(4889-4904) would be sell levels. Weak Markets won’t cross 4879. Above 4904 Nifty could test 4925 (Friday’s high), further it could open for 4948-4979-5005-5065-5131-5222. Nifty has support at 4831 (Friday’s low). Below it could open for 4802-4788-4768-4531”.
GEPL CAPITAL: With the support of 4850 now broken, Nifty appears susceptible to further downside. There is a minor support placed at 4835 which is the closing basis low of past few sessions. If it breaches that support then a confirmed downside till 4750 at least and below that 4700 is a possibility. On the higher side the level of 4960 would now act as a resistance for Nifty. Till the time 4960 is not cleared the short term trend would continue to remain weak”.
ADITYA BIRLA MONEY (MONEY WEEKLY): “Continued inaction by the government, though, in the face of a deteriorating global economic climate could precipitate our markets lower. We continue to advise investors to be positioned defensively -- FMCG, Pharma, IT and companies with healthy cash flow and low gearing – and accumulate at lower levels”.
ICICI SECURITIES: “A close above 4950 would only negate the current downtrend in the short-term. Otherwise, the selling pressure would continue in the index. On the downsides, 4675 is a critical support. The Bank Nifty has reverted from 9800 and breached its important support at 9300. We expect selling pressure in the Bank Nifty to prevail till it is unable to sustain above 9300. Major support for the Bank Nifty lies near 8800”.
SMC TRADEONLINE (WISE MONEY):June month started with very low rollover of 59% in Nifty vs. 72% and overall market wide rollover declined to 71 % from 77% of last month. The overall open interest in starting of expiry is at seven year low. Nifty remained silent in expiry week and traded in the range of 5000- 4850 levels. Market undertone is likely to remain negative on account of developments in Europe. Among the put options, 4500 strikes puts hold maximum open interest of above 59 lakh shares, which is the highest open interest in any strike in current series. On the call side, maximum option concentration is at 5000strikes, having open interest of more than 44 lakh shares. Rising IV is also indicating uncertainty. Implied Volatility is expected to remain up on back on global uncertainty. The Implied Volatility (IV) of ATM call options closed at 22.94%. While the ATM IV of put options ended at 24.01%. Put-call ratio of open interest increased to 1.49, indicating rising interest in out of money puts. Range of 5000-4780 will remain crucial for next week with expectation of increase in volatility”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): Technically the market is still weak and the recent lows of 4800 are under threat and we could see levels closer to 4761 and in all fairness we must also state that 4900 is a stiff resistance to deal with. From a trading point of view I would trade the short side as long as 4900 is not taken out.” 
ANGEL BROKING (Technical): The global financial uncertainty and rupee depreciation is proving to be extremely detrimental for our markets. Markets traded in a range of 16545 to 15933/5020 to 4841. Going forward, this week's high would act as strong resistance level. We are of the opinion that traders who intend to trade with a positive bias should enter the market only if indices sustain and close above the weekly high of 16545/5020. Conversely, we reiterate our view that the recent swing low of 15809/4789 now holds as a key support level for the market. A violation of this level would increase the current negative momentum and as a result indices may slide towards 15678-15135/4695-4530 levels”.
MICROSEC SECURITIES:For the coming week, first support of Nifty is at 4770 and the resistance is 4910. If Nifty breaks 4770, it may further go down to 4720 and then 4640. However, if Nifty is able to sustain above 4910, the level of 4960-5040 would become the next target”.
INDIRATRADE SECURITIES:For the next week, Nifty likely to trade in the range between 4950-5050 in the upper side and 4700-4600 in the lower side”.
SWASTIKA INVESTMART:The Major factors that will decide the further trend of markets are; volatility in Exchange rates, Global political & Economic issues and activity of foreign institutional investors. Apart from these shares of exporters will be in focus as Commerce Minister unveils the foreign trade policy for 2012-13 on Tuesday, 5 June 2012”.
MAGNUM RESEARCH: “On the Nifty 4800 mark will have a strong support closing below which Major trend will turn negative and selling pressure till 4630 levels could be witnessed. On upside, 4940 will act as immediate resistance, sustaining above which the next level would be 5070 level”.
SPA (THE FINANCIAL ADVISOR): “With market trading below the support of 5170- 5340, the intermediate-term trend is down. For the short-term trend to consider improving we have to see how market behaves around the support zone of 4790-4820”.

No comments:

Disclaimer: "It is assuming that all Traders and/or Investors are well known of the fact that Investment are subject to market risk and no responsibility will be taken either by the author or writer of the blog content whether direct, implied or consequential for any losses or profits that may occur as a result of trading with the calls provided in this blog.."