"MARKET OUTLOOK & TRADING IDEA FOR TUESDAY (19.04.2011)"

FIIs were net sellers with the tune of ` 981.56 crore (prov. cash market fig). 

The BSE 30-share Sensex was down 295.65 points or 1.53% to 19,091.17, its lowest closing level since 28 March 2011. The Sensex shed 315.35 points at the day's low of 19,071.47 in late trade. The index gained 262.40 points at the day's high of 19,649.22 in morning trade. The S&P CNX Nifty was down 95.45 points or 1.64% to 5,729.10, its lowest closing level since 28 March 2011. The Nifty hit low of 5,722.25 in late trade. The BSE Mid-Cap index fell 1.29% and the BSE Small-Cap index declined 1.29%. Both these indices outperformed the Sensex.

The market breadth was weak. On BSE, 1,822 shares declined while 1,099 shares rose and a total of 92 shares remained unchanged. The breadth was strong earlier in the day. Among the 30-member Sensex pack, 25 declined while rest of the shares advanced.

BSE clocked turnover of Rs 3374 crore, lower than Rs 3760.44 crore on Friday, 15 April 2011.

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VIEWS FROM DIFFERENT BROKING HOUSES:

SKP SECURITIES: “Nifty future may face resistance at 5800-5885 and take Support at 5680-5630”. 

FAIRWEALTH SECURITIES: “In the next session Nifty may trade in the range 5690-5763. Below 5690 nifty may take support at 5663 and 5624 levels while 5801 may act as a strong resistance. Trend of the market would be bearish; Traders are suggested to follow the strategy of selling at rise. Bank Nifty is expected to trade in the range 11440-11740. However, 11330 and 11180 are other support levels that Bank Nifty may test if sustained below the given range. 11810 might be a strong resistance level”. 

KARVY STOCK:  “The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Trade long above 5720 with stop loss 5700 targeting 5780 and 5800 levels, alternatively trade short below 5700 with stop loss 5720 targeting lower supports”. 

GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “ … Technically the market is sitting on a strong support of 5717 and so a reaction a reaction is not ruled but technically the market is still weak and the next logical target on the way down is 5646. The support for the Nifty is at 5717-5646 and resistance at 5800. The crucial support on the Sensex on the downside is 19040-18802 and resistance at 19337”.

ANGEL BROKING (Mileen Vasudeo): “Markets opened on a positive note, witnessed a rally which was short-lived and this lead the indices to close in red. On the daily chart, we are observing that prices have breached the prior swing low of 19,101/5,735 and have tested the 200-day SMA (19,076/5,726) but closed marginally above it. In coming trading session if indices trade below the 200-day SMA (19,076/5,726) then it is likely to test 19,000-18,780/5,700-5,624 levels. However, considering that that hourly charts are extremely oversold a bounce from current levels up-to 19,284-19,354/5,787-5,810 cannot be ruled out”.

IIFL (Amar Ambani): “The Indian markets will be all ears to the first official monsoon forecast from the IMD on Tuesday. They will also keep an eye on the ongoing state elections. Technically, after a strong sell-off the Nifty managed to take support at its 200DMA of 5722. It remains to be seen how it behaves in the coming sessions”.

MICROSEC SECURITIES: “On an intra-day basis Nifty has a support at 5700 and is likely to face a stiff resistance near 5760. If Nifty breaks 5700, it may further go down to 5660 and then 5620. However, if it is able to sustain above 5760, the level of 5795–5830 would become the next target”. 

BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed selling pressure and closed in red for second consecutive day. Nifty has support zone in 5,730-5,700 levels, if Nifty manages to respect 5,730-5,700 area, that recovery may also be seen from these levels else selling pressure till 5,650-5,550may be seen in coming days. FY`11 Q4 companies results continuing to have an effect on sentiment preparation. For daily purpose, the trend deciding level is at 5,700-5,730. If Nifty shows strength above 5,730 level, then rally to 5,780/5,850/5,900 levels may be seen. If Nifty does not show strength above 5,700 levels then profit booking till 5,650/5,600/5,550 may also be seen”. 
PADMAKSHI FINANCIAL SERVICES (Anand Kuchelan): “The markets fell sharply after the weaker than expected Infosys numbers and higher inflationary expectations. Nifty is likely to take support around 5650-5700 levels. The Indian VIX index which rose from 18 to 23 in 2-3 trading sessions gives an indication of persisting volatility. On the higher side 5850-5900 is likely to act as resistance”.

ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 19,271/5,783 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,470–19,848/5,844–5,959 levels. However, if Nifty trades below 19,271/5,783 levels for the first half-an-hour of trade then it may correct up to 18,892–18,693/5,668–5,607 levels”.

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