"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 28.01.2013 TO 03.02.2013"

At the close, the benchmark 30-share index, BSE Sensex gained 179.75 points or 0.90% at 20103.53 on daily basis and 64.49 points on weekly basis. Meanwhile, the broad based NSE Nifty climbed by 55.30 points or 0.92% at 6,074.65 on daily basis on Friday and only 10.25 points on weekly basis.

VIEWS FROM DIFFERENT BROKING HOUSES:

HDFC SECURITIES: “With the Nifty holding above the 6010 levels and rallying smartly, the bulls seem to have made a comeback. The uptrend is likely to accelerate in the coming week once the Nifty crosses the recent highs of 6094. Upside targets in this scenario are at 6150”.

CANARA BANK SECURITIES (CanMoney): “Nifty breached its consolidation and any moving above 6100 may be taken as fresh buying trigger for short term. Though OI build-up is restricted to in the money positions as supported by lower value of VIX too. VIX is continued to be quoted at multi-year  low  which  indicates  that  Nifty  has  lower  odds  for  trend reversal”.

BONANZA ONLINE: “Nifty showed indecision during the week. Nifty is trading in 6000-6100 range. Until Nifty decisively maintain above 6100 below 6000 levels, volatility may be continuing. RBI policy in this week may play important role in sentiment preparation. Traders should be cautious. For trading during the coming session, trend deciding level is 6050.  If Nifty shows strength above 6050 levels then we may see rally till 6100-6125/6175/6225. If  Nifty doesn’t sustain above 6050 levels then profit booking till 6000/5950/5900/5860 may also be seen”.

Duration	Action	Entry Zone (NF)	For Target of	Stop Loss
For Monday	Buy	6050-6060	6105-6120	6025
For the Week	Buy	6030-6060	6125-6150	6000

GEPL CAPITAL: “We maintain the view of exiting from long positions and recommend caution at present levels. The level of 5990 is now an immediate important support and the same may be placed as a stop loss for any existing long positions. Any breach of 5990 may drag the Nifty down till 5900 to 5850 range. On the higher side the level of 6105 would now serve as a resistance for Nifty.  Even if 6105 is surpassed the rally may remain limited to 6139. We maintain a cautious view and recommend profit taking in any bounce till 6080 or a rise till 6139”.

KARVY STOCK BROKING: “Long positions can be assumed in Auto, Banking, Capital Goods, Consumer Durables, FMCG, IT, Pharma and Telecom if the Nifty sustains above 6000 levels. Short positions can be accumulated in Cements and Utilities if the Nifty breaches 5950 levels. Overall, we expect Nifty to trade in the broad range of 6000-6150 levels for next week. A breakthrough of this range would lead to sharp momentum in the Index”.

ADITYA BIRLA MONEY (MONEY WEEKLY): “Next week, markets will keenly await the outcome of the RBI monetary policy meet. There are high expectations of a policy rate cut. Thus, if RBI keeps interest rates unchanged, markets are likely to see a sharp sell-off. A 25bps cut would be marginally negative in the short term as the market has already priced that in while a 50bps cut would be positive for the markets as it would provide a boost to investor sentiment and economic growth”.

ICICI SECURITIES: “An immediate support for the Nifty is at 5980. Despite ongoing jitters, the Nifty remained above 6000. We expect the positive bias to remain in the Nifty till it sustains above these levels. On the higher side, 6180 should act as stiff resistance. The Bank Nifty continued to find support at 12500 levels last week and exhibited a strong bounce back. We believe these levels will remain critical for the banking index whereas 12850 should remain an immediate hurdle for the banking index. Above this, it may test 13200”.

SMC TRADEONLINE (WISE MONEY): “On the technical front, Nifty has strong support at 5950-6000 levels. Going forward, it is expected that Nifty would trade in the range of 5900-6100 till volatility kicks into the market”.

GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The crucial support for the Nifty is at 6000 and the resistance is at 6100-6180”.

ANGEL BROKING (Technical): “The market breadth is still significantly weak and we continue to mention key resistance levels as 20164/6102 for the week ahead. The weekly chart now depicts a candlestick pattern which resembles a 'Hanging Man'. The said pattern has a negative implication and requires a confirmation in the form of closing below the low i.e. 19884/6007. Also the negative divergence on the RSI momentum oscillator on the daily chart is still intact and has bearish implications. Further, on Tuesday, the RBI is going to announce the 'Monetary Policy' and any disappointment may trigger pessimism in the market. A close below 19884/6007 would indicate a further fall and indices may slide towards the 19596-19406/5940-5897 levels. On the other hand, the 20164/6102 level continues to be a still resistance for the market. We continue to remain cautious and advise traders to reduce their long positions and book partial profits in individual stocks near to the 19950-20100/6070-6125 mark”.

INDIRATRADE SECURITIES: “For the next week, Nifty likely to trade in the range between 6150-6200 in the upper side and 5950-5900 in the lower side”.

SHAREKHAN:  “Nifty is now expected to head lower till 5900 with resistance around 5977 in the short term. The key support in the immediate run will be around 5900 and resistance will be at 5977. The Nifty’s short-term bias has changed to negative for a target of 5850. The medium-term outlook remains positive with reversal at 5823, as the index has started forming higher tops and higher bottoms on the weekly chart. It has also formed a bullish island with support around 5649”.