The 30-share benchmark index, Sensex ascended 1,019.16 points or 6.07% during the week to 17,804.8. Meanwhile, the broad based Nifty surged 310.75 points or 6.15% over the week to 5,360.7
FIIs were net buyers with the tune of ` 2166.21 crore whereas DII were net sellers of ` 1078.41 crore on Friday, the 28th October 2011(prov. fig.)
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: “Investors have been positive since the RBI has raised key rates by another 25 basis points and made a promise to not raise rates further in December. Though the markets moved up sharply over the week, there needs to be continued delivery buying to sustain this uptrend. 5,400 act a crucial resistance and if the markets convincingly close above this level next week, the rally could continue for some more time”.
KOTAK SECURITIES (Shrikant Chouhan): “For the coming week of course the level of 5,415 will play an important role to keep the market down but on the dismissal of the same will result into quick succession to 5,500 levels. On the lower side 5335 and 5,270 will act as a major support. Any weak opening will be an opportunity to buy at above mentioned support with a final target of 5,450 and 5,500 on the higher side. Sector specific we should concentrate on IT sector as the dollar is not easily going to give up. It will oscillate between the range of 48.00 and 49.70. In that space be a buyer for Infosys and TCS at each major supports. Even metal space seems to be highly oversold and may out perform in the near term. Hindalco can do well. Out of Auto and Banking sectors few stocks can perform as they are supporting with expansion in volumes. In that space M&M and Yes bank are our top picks”.
CANARA BANK SECURITIES (CanMoney): “Technically, after making a bullish candle in last session, today Nifty witnessed excellent buying interest and formed one big bullish candle. Nifty closed on firm gains near day’s high, mainly on the back of combination of buying plus short covering. Chart wise, it was 5350 level, breaching of which now confirmed bulls arrival. Overall it signifies about returning strength of the bulls in our market. Nifty has regained its sentimental support level of 5350 and almost breached the sanctity of 5400 level, though not able to penetrate that, but it is indicating the bull’s strength. Owing to firmness in Large Cap, small cap and mid-cap, Bulls outnumbered the bears with a good margin. In today’s session, Nifty not only closed firm, but also, conquered vital 100day’s SMA placed at 5240. It above the vital 9, 14 & 50 day’s SMA also placed at 5143, 5111 & 5005. These levels may be the new supports in forthcoming sessions. In today’s session, VIX, the barometer of uncertainty, corrected and closed at an average level of 20.89, indicating an average volatility in market in the forthcoming sessions. RSI (14) for the session was at 66.05 levels and MACD closed above the signal line, thus combined together they are giving the signals that market may continue to witness some positive movements in forthcoming session amidst lesser volatility”.
FAIRWEALTH SECURITIES: “The Nifty has finally broken through the 5182–5224 level on the upside with significant amount of ferocity making this an important support level on the downside. The near term rise could mean some minor pressure coming in; the outlook has turned positive while a scrip-specific approach would help. The upper side target might be around 5470‐5555”.
BONANZA ONLINE: “Nifty made long candlestick pattern on weekly charts and Nifty is also trading above important 5200 levels which shows that Nifty is showing buying momentum. On upside, Nifty may face some resistance in 5450-5550 zones. Traders may take delivery based positions in good stocks with stoploss. For trading during the coming sessions, trend deciding level is 5350. If Nifty shows strength above 5350 levels then we may see rally 5400/5470/5525/5600 levels. If Nifty doesn’t sustain above 5350 levels then selling pressure till 5280/5225/5150/5080/5025 may also be seen”.
| Duration | Action | Entry Zone (NF) | For Target of | Stop Loss |
| For Monday | Buy | 5380-5350 | 5450 | 5330 |
| For the Week | Buy | 5425-5350 | 5500-5550 | 5300 |
KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat to positive note on the next trading day. Trade long in Nifty above 5,350, else from 5,320 with stop loss 5,300 for targets of 5,380-5,400 levels”.
ADITYA BIRLA MONEY (MONEY WEEKLY): “Markets have rallied a solid ~6% for the week taking cues from the international equity markets. An interim resolution to the ongoing European sovereign crisis led to rallies across riskier asset class with metals and equities rallying big time. High beta metals rallied big time. However, PIIGS sovereign bond yield did not react in the same manner / magnitude. The market that has been driving the European crisis is the sovereign bond markets and Equities are a mere consequence of this and not the root cause. Therefore fall in bond yields in PIIGS is important and critical to the success of the entire restructuring plan. A 2.5% growth of US GDP for Q3 too surprised the markets on the positive side. With RBI indicating pause to the ongoing monetary tightening also led to improved sentiments domestically. FII were net buyers to the tune of ~ ` 27.7bn for the whole of the week. We expect some more shorts to be closed before the markets actually take a breather. Markets are likely to move to a higher trading band of 5200-5500 but highly unlikely to break out of this on the upside given the current policy stand domestically and state of affairs of the Government finances and capital investments in the country”.
ICICI SECURITIES: “The Nifty November series started with 26.2 million shares which is highest open interest seen since September 2010. Sustained premium in index futures indicates positive bias may remain in coming sessions. At the same time, most of the index heavyweights saw sharp rise in their open interest. We expect Nifty to in the broad range of 5230 on downsides and 5450/5540 on upsides. Bank Nifty closed tad below its major resistance of 10050. A sustained move above these levels can trigger short covering which may pull the index to 10500. On the downsides, major support is placed at 9800 levels”.
SMC ONLINE (WISE MONEY): “The market is expected to remain in the range of the 5200-5500 levels in the short term. Technically, the Index has climbed above the short- and medium-term averages, indicating bullishness to prevail in the near term. The put-call ratio of open-interest declined during the week and closed at 1.47. The highest concentration of open-interest for the series continued at the 5000-strike put, with open interest of 47 lakh shares. Among call options, the highest open interest of above 37 lakh shares is at the 5500 strike, indicative of a critical resistance, The Implied Volatility (IV) of call options closed at 22.23% for the week, whereas it closed at 23.12% for puts. For next week, the market is expected to consolidate the recent gains and some profit booking is expected at higher level”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “Technically the market should be seen as up until 5485 which is a logical target in the current campaign and if the market still continues up then the next logical target in the days to come could be 5695. Strong supports exists at 5200 zones. From a trading point of view, I would trade long as long as 5200 holds. On daily chart, the bar that is generated is a island bar capable of stalling the up move however I would have a crucial support at 5322 and trade long. The support for the Nifty is at 5322 and resistance at 5485”.
ANGEL BROKING (Technical): “Finally, after several attempts, the bulls have managed to cross a firm resistance level of 17260/5198 and closed convincingly above it. As a result, a "Higher-Top Higher-Bottom" formation on the Daily chart was confirmed after nearly six months. Going forward, it is likely that indices are now heading initially towards the Daily "200 SMA" placed at the 18020/5410 level and then towards the "Downward Sloping Trend Line" placed around 18150/5475. Thus, indices may face supply pressure near 18020-18150/5410-5475 levels. However, we are also observing a positive crossover in the "ADX (9)" indicator, which suggests possibility of a strong momentum if indices manage to cross and sustain above the 18175/5475 level. The effect of positive crossover may push indices higher to test 18300-18440/5500-5550 levels. At this juncture, the "Narrow range" body formation on the Daily chart indicates possibility of a consolidation or a minor pull back if indices trade below the 17671/5322 level. In this case, indices may fill the gap of 17671 to 17350/5322 to 5219 created on October 28, 2011. We advise traders to adopt stock specific approach and avoid taking undue risks”.
IIFL (Amar Ambani): “Investors` focus will turn to the G-20 meeting next week in Cannes, southern France where details of Thursday’s anti-crisis measures for the euro-zone are likely to emerge. For the moment though, global investors were focusing on the broad contours of the euro-zone debt plan and encouraging economic data out of the US. October has been pretty solid for equities globally. It remains to be seen whether the momentum can be sustained in November as well. The start of November will see Indian markets reacting to monthly auto sales, cement volumes, trade data and manufacturing PMI. Globally, investors will have to contend with the latest policy meetings of FOMC and ECB, manufacturing PMI reports, auto sales and the US jobs report”. (source: myiris)
MICROSEC SECURITIES: “After consolidating in the range of 4700 and 5200 in the last three months, Nifty has given a strong breakout rally in last couple of days. Now we expect Nifty to face a stiff resistance in the band of 5410 and 5450. If it is able to maintain above 5450, this rally would continue to 5600. However, Nifty has made a gap between 5220 and 5322 yesterday. So there is a possibility that it may go down to 5220 in the extreme short term. Traders are advised to book profits of the long positions at the current level. For the coming week, first support of Nifty lies at 5320 and the resistance is 5415. If Nifty breaks 5320, it may further go down to 5270 and then 5200. However, if Nifty is able to sustain above 5415, the level of 5450-5540 would become the next target”.
JRG EQUITY RESEARCH (IndiTrade): “The Bullish-Gap formed by the indicators will act as the major support zone for the time ahead. NSE Nifty if manages to sustain above the range of 5320-5220, on a closing basis, the rally will continue further in the days ahead – however, if closes and sustains below this, the tidings will turn negative for the medium-term. The critical level for the market for further upside is expected to be 5410 – which happens to be the 200-Simple Moving Average for Nifty. The upside resistance for the time ahead is seen at 5480 followed by 5530”.
SWASTIKA INVESTMART: “On weekly charts, we can observe that the momentum Indicators RSI and Stochastic are moving northwards and the index is near its resistance which is shown on the charts above with the help of down-sloping trend-line. For the coming week, 5300 is the immediate support for the week. If the index slips below these levels then the selling pressure will cause Nifty to get support near 5230/5170 levels. On higher side it will face resistance at 5410 levels. Strength can be seen if it decisively maintains above these levels. Further gains are likely to face resistance towards 5490/5550 levels”.
HEM SECURITIES: “Stock-specific activity may dominate trade in the near-term as Q2 earnings season gathers steam. On Monday, markets are expected to have downtrend”.
UNICON WEEKLY: “Technically Nifty on weekly chart has formed bullish candle stick pattern, which shows sideways to positive sentiment in coming sessions. Stochastics and the RSI are slightly oversold and sideways signalling that buying pressure at support levels are possible short-term. Nifty closed near the 200 day moving average (5410) indicates the short term trend could be turning sideways to bullish. Stochastics trending higher at midrange will tend to reinforce a move higher especially if support levels are taken out. The market setup is somewhat sideways to positive trend with trading range between 5160-5530. The next area of resistance is around at 5480-5560. So Nifty appears to be sideways trading on weekly chart having supports at 5240-5150 levels. For short term trading long positions, stop loss of 5100 is advisable. Weekly Nifty has resistance at 5480-5560 and supports at 5240-5150. Weekly Sensex has resistance at 18150-18500 and supports at 17400-17085. Weekly Bank Nifty has resistance at 10200-10500 and supports at 9850-9700”.
R K Global: “In the upcoming week, we expect to the bullish trend continue in the market, however, investors will closely watch the 4TH Nov. ’11 G-20 meeting for further cues”.
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