FIIs were net sellers with the tune of ` 181.55 crore (prov. cash market fig.)
The BSE 30-share Sensex was up 184.69 points or 1.02% to 18,326.09. The index gained 288.07 points at the day's high of 18,429.47 in mid-afternoon trade. The Sensex rose 19.98 points at the day's low of 18,161.38 in early trade. The S&P CNX Nifty was up 56.25 points or 1.04% to 5,486.35. The BSE Mid-Cap index rose 0.61% and the BSE Small-Cap index gained 0.49%. Both these indices underperformed the Sensex.
The market breadth was positive. On BSE, 1548 shares gained while 1288 shares declined and a total of 117 shares remained unchanged. The breadth was much stronger at the onset of the trading session. From 30-member Sensex pack, 27 shares gained while three of them declined.
BSE clocked turnover of ` 2764 crore, higher than ` 2432.79 crore on Thursday, 19 May 2011.
FOR DETAILS, “READ HERE”.
VIEWS FROM DIFFERENT BROKING HOUSES:
KOTAK SECURITIES (Sanjeev Zarbade): “Going ahead, we expect markets to continue to move sideways. So long as the inflation continues to remain a worry, the risk of further monetary tightens by the RBI remains. In this regard, monsoons remain a key event as a sub-normal rainfall may impact farm production resulting in further pressure on food inflation. Among sectors, we prefer IT, Private Banks, Media and select capital goods and construction stocks”.
CANARA BANK SECURITIES (CanMoney): “Next week will witness the expiry of May Series of F&O, which may exert considerable volatility in our market. VIX has continuously witnessed a variation during last week and at closing, it was at sub 20 levels. This may rise in this range for next week, which may add to volatility in our market. EGoM may announce its decision w.r.t. surge in Diesel & Gas prices and Finance ministry may clear its stand on DEPB issue. These all may give directions to the investors in domestic market in the next week. Diesel & Petrol rate hike may support the OMCs, while the same may have negative influence over Auto stocks. Realty, Cement, Consumer Goods and Power sector may remain in consolidation.”.
FAIRWEALTH SECURITIES: “As explained in our weekly technical view that the trend is bearish. the Nifty has closed below the crucial support of 5495 on the weekly closing basis i.e5486 which is again giving the bearish signal and one should take an opportunity to sell at rise if Nifty goes up. Next session’s range of Nifty may be at 5465-5501 with the resistance at around 5531and the support for the Nifty exists at 5444/5411/5401. Bank Nifty is expected to trade in the range 10580-10730. Below this range bank Nifty may test 10454. However, 10830 may act as a strong resistance in bank nifty”.
BONANZA ONLINE: “Nifty is weak in short term as it is trading below important resistance in 5550-5625. Nifty is also trading below its 200 DMA. Profit-booking near resistance levels may be done. Major selling was seen in Auto, Realty, Banking and Oil & Gas sectors. Selective buying was seen FMCG and IT stocks. For trading during the coming sessions, trend deciding level is 5550. If Nifty shows strength above 5550 levels then we may see rally to 5625/5750/5800 levels. If Nifty doesn’t sustain above 5550 levels then profit booking till 5400/5350/5300 may also be seen”.
| Duration | Action | Entry Zone (NF) | For Target of | Stop Loss |
| For Monday | Buyl | 5445-5470 | 5520-5550 | 5430 |
| For the Week | Sell | 5550-5625 | 5500-5400 | 5640 |
KARVY STOCK: “The market is expected to open on a negative note tomorrow. Trade short in Nifty at 5480 levels with a stop loss placed at 5500 for targets of 5450 and 5420. Alternatively, trade long if the Nifty holds 5500 levels with a stop loss placed at 5480 levels for targets of 5550 levels”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “Nifty today showed absolute strength and once moved above 5,500 but came to a close for the day in green but off the day’s high. It seems the investors have gained some confidence as Nifty showed some consolidation around 5,400 and on technical ground it was a bit oversold. Major resistance is there at 5585. But still we can’t conclusively say that the markets have bottomed out. As the decision on diesel and LPG price hike is pending, negativity factor will remain dormant till then”.
BONANZA PORTFOLIO (Shanu Goel): “A closing above 5,500, would have made intermediate trend positive, till then Nifty is likely to trade within a range of 5,370-5,525”.
INDIRA SECURITIES: “It was a disappointing week for the markets with most of the sectoral indices taking severe cuts. Capital goods was the only sector that showed some uptrend. This week Nifty likely to trade in the range between 5650 in the upper side and 5300 in the lower side”.
ADITYA BIRLA MONEY (MONEY WEEKLY): “Government policy making in terms of allocation of natural resources, land acquisition, government contracts and awards, and other regulations etc. has been very ordinary and ad-hoc. No specific policy action and remedial measures from the respective ministry, cabinet and the planning commission has been forthcoming, which has made the Investors disinterested and have killed market sentiments. Market is also apprehensive of the fall out of the next round of charge sheet in the 2G scam investigations. All this coupled with monetary tightening has reduced the relative attractiveness of our markets with the FII’s and domestic institutions do not have enough to prop the markets owing to lack of retail participation domestically. The only respite for the market could be moderating commodities which could possibly lead to change in outlook for some of the short term funds leading to a bounce back. Technically, market is likely to find support at 5420 & 5350 levels and would face resistance at 5530 & 5600 levels”.
ICICI SECURITIES: “If Nifty starts trading above 5540, further short covering can be expected in the Expiry week. In case the index moves below 5450, the bearish bias may prevail again and the selling pressure can be more severe. The follow up action has to be seen on Monday. The reversal started on Friday with closure of shorts along with the narrowing of discount. Bank Nifty held above 10500. We expect the index may continue to find support near these levels if Nifty holds above 5450. The accumulated shorts in Bank Nifty are likely to play the vital role in the expiry week. The sustainability above 10500 may induce short covering, in which case 10750 can be seen, else the index may slide down till 10200”.
MICROSEC SECURITIES: “Technically, Nifty is facing a strong support near 5350. However, the short term crucial resistance of Nifty lies at 5610. We expect Nifty to move in the range of 5350 and 5610 in the short term. If Nifty breaks 5350, it may further go down to 5240. However a breach of 5610 would open the gate for 5760. Traders are to hold long positions with a strict stop loss of 5350. For the coming week, first support of Nifty lies at 5440 and the resistance is 5520. If Nifty breaks 5440, it may further go down to 5400 and then 5350. However, if Nifty is able to sustain above 5520, the level of 5575-5610 would become the next target”.
JRG EQUITY RESEARCH (IndiTrade): “Indian markets bounced back much from the week's low. Considering the fact that the current downside has almost reached the first support of sell-off, the scope for the upside to stretch a little further is not ruled out, even though the recovery to sustain is hard to expect at this point of time. The momentum indicators have reached much to the oversold region and are attempting to recover. The bullish divergence, visible in a number of indicators, is imparting hope for (at-least a limited) upside. Stochastic oscillator is bouncing back with a positive crossover. Momentum is improving in MACD. The market strength as an indication of RSI is also adding to the positive outlook. All of these are suggesting a market recovery IFF the market indices manage to break the critical resistance levels. However, the market being below all major Moving Averages is a cause of concern for Bulls. Any upside will get extreme push-down from these levels. The critical level for NSE Nifty for the week ahead is seen at 5535. The index is expected to extend the recovery further ONLY if remains above this. However, the 200-days Exponential Moving Average which is trading at 5620 will possibly limit the upside. The second resistance for the week will be 5675. The first support on downside is expected at 5400, followed by 5335. A close below this will be unfortunate for the short-term”.
PINC RESEARCH: “Last week’s Nifty movement illustrated the following features. 1) Pace of the declines is slower compared to rallies. 2) Volumes are languishing at extremely low levels. 3) Emergence of "Harami" pattern which is a bullish pattern in technical parlance. 4) Technical indicators and oscillators apart from being oversold are now exhibiting positive divergence. All these reasons only points out to minimal downsides from current levels. Any possible upmove and a breach of the blue trend line could result in a sustainable recovery in the short term. We continue to be positively biased for an upmove”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The market unfolded as expected and closed in the green. We are now heading into an F&O expiry and we could see higher levels in the days to come and strong support is around 5400. The support for the Nifty is at 5400 and resistance at 5609. The crucial support on the Sensex on the downside is 18150 and resistance at 18705”.EDELWEISS FINANCIAL ADVISORS: “The week started on a negative note as Nifty lost 0.8% on Monday followed by a steeper 1.1% cut on Tuesday. However, a positive thing to happen on Tuesday was that while Nifty closed at 5439, lower than the close of 5460 made on 5th May, the relative strength index (RSI), made a higher bottom, resulting in "Positive Divergence" as shown in the daily chart below. This indicated that the fall is happening with lesser strength and also gave a hope that a pull-back rally might be on cards. On Wednesday, the benchmark fell a third of a percent to make a bottom of 5401, followed by a marginally green Thursday. The last day of the week, finally brought that much awaited pullback, which saw Nifty surging 1.6% intraday to touch a high of 5517 and finally settling at 5486, down 1.05% week-on-week. While a pull-back rally was a logical expectation after a positive divergence, the resumption of a higher-top higher-bottom formation is the key requirement to turn the view decisively bullish, which is yet to happen. The pullback can extend itself to around 5600 if Friday's high 5517 is crossed, where the 200 day exponential moving average (5615) and the top made on 13th May (5605) present a tough resistance. Beyond 5615, Nifty can rally till 5736, which is the 61.8% retracement level of the 5944-5401 fall as shown in the weekly chart below. On the way down, the breach of this week's low, 5401, can take the benchmark to around 5350, where the trend line adjoining 4786 and 5177, the bottoms made in May 2010 and February 2011 respectively, presents a support. Below 5350, a retesting of 5177 is quite possible”.
SHAREKHAN: “The Nifty is trading below its 200 day simple moving average (DSMA) and 200 day exponential moving average (DEMA) that is 5,745 and 5,629 respectively, which will act as a very crucial resistance zone in the short and the medium term. On the weekly chart the Nifty has completed the pull back retracing 61.8% (5945) of the fall from 6,338 to 5,177 for wave X, which will act as a very strong resistance zone going forward. The daily momentum indicators continue to support the bears and so we continue to maintain our medium term bias down. On the daily chart, the Nifty is trading below its 20 day moving average (DMA) and 40 DMA that is 5,593 and 5,609 respectively, which are its crucial levels in the short term”.
FOR TECHNICALS, “READ HERE”
No comments:
Post a Comment