Asian stocks fell from a three-week high as concern resurfaced that an economic recovery may stall after reports showed U.S. retail sales declined and the Federal Reserve cut its growth forecast. Japanese benchmark index Nikkei 225 fell 109.70 points, or 1.12%, to trade at 9,685.54.
Hike in Inflation rate, Downgrading Metal, Banking and IT sectors, HDFC's poor number, hits the market yesterday. In fact, previous attitde have shown by any Market to correct mildly from any major resistances before breaking out. It is also common for markets to spend some time before deciding the next direction.
Till nifty convincingly close above 5500 this type of flash correction will come. So try to keep your both eyes for all open positions and exit at the slightest of weakness. Since preserving capital is more important than earning profit within this range. Market will test our patience for the next few days. Try to trade carefully. If possible, use option to minimize our risk till the proper breakout above 5500.
FOR TODAY: Nifty future closed below below the breakout point of 5400 which can either be a breakout failure or a normal small correction after the gains of previous four days.
US stocks closed mixed Wednesday, with the Dow Jones industrial average rising almost 4 points for its seventh straight advance. The other major market indexes also had single-digit moves. Bond prices rose as investors, again uneasy about the strength of the economic recovery, went in search of safe investments. The Dow rose 3.70 points, or 0.04%, to 10,366.72.
Among Indian ADRs, Infosys Technologies (0.08%), Satyam Computer (0.58%), Dr Reddy`S Laboratories (0.73%), MTNL (1.06%), were major losers.
Oil prices drifted lower Wednesday after the Federal Reserve lowered its forecast for U.S. economic growth this year. Benchmark oil fell 11 cents to settle at USD 77.04 on the New York Mercantile Exchange after rising as high as USD 78.15 earlier in the session.
In the spot market, the Dollar Index increased 0.008% to 83.43. It touched a high of 83.51 and a low of 83.36 after opening at 83.37.
Indian equities are likely to open on green (around 25 points up) today. SGX Nifty is trading at 5412 (at this time of writing), 30 points higher than Wednesday closing of 5,382 indicates the upmove opening to cover yesterday's loss. If any negative news from Global as well as result counter not coming, again nifty future will try to touch 5450 (yesterday's high was 5453.85). Market may also be volatile today.
TRADING RANGE PROBABLY BETWEEN 5379-5450.
TRADING CALLS:
From Fairwealth Securities: Buy Patni Computer Systems above Rs 533 for target of Rs 541-552 and stop loss of Rs 525.
Buy Castrol India above Rs 451 for target of Rs 465-475 and stop loss of Rs 447.From Mangal Keshav Securities: Buy Bartronics India above Rs 142 for target of Rs 165 and stop loss of Rs 135.
FUNDAMENTAL CALL:Buy DCB above 46 with a target of Rs 50 and stop loss of Rs 42
A K Stockmart recommends `Buy` on Cholamandalam Investment (CIFCL) with a target of Rs 181 as against CMP of Rs 151
A K Stockmart recommends `Buy` on Century Textiles with a target of Rs 599 as against CMP of Rs 460Asit C Mehta recommends `Hold` on Exide Industries with a target of Rs 147 as against CMP of Rs 139
Emkay recommends `Hold` on Sintex Industries with a target of Rs 325 as against CMP of Rs 330
Kotak Securities recommends `Accumulate` on Gateway Distriparks with a target of Rs 132 as against CMP of Rs 121
JRG Securities recommends `Buy` on KEC Intl with a target of Rs 582 as against CMP of Rs 476DISCLAIMER: No position
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