Weak IIP data affected Indian market negatively with both benchmark indices breached their psychological support levels of 16,000 and 4800, respectively. At the close, the benchmark 30-share index, BSE Sensex lost 343.11 points or 2.12% at 15,870.35 with 27 components posting drop. Meanwhile, the broad based NSE Nifty fell by 102.10 or 2.10% at 4,764.60 with 47 components posting drop.
VIEWS FROM DIFFERENT BROKING HOUSES:
CANARA BANK SECURITIES (CanMoney): “Technically, after exhibiting significant falls in last session, Nifty witnessed a very volatile session and closed with significant cuts besides breaching the sanctity of 4800 level. Level wise, closing below the vital 4800 levels may depict strength of the bears in the forthcoming sessions. Broader market witnessed weak sentiment; all segments like small-cap, mid-cap and large-cap were under sellers’ grip. Owing to this, bears outnumbered the bulls with significant margin. Due to continued selling Nifty closed below its vital 9, 14, 50 & 100 day’s SMA placed at 4922, 4867, 5015 & 5097. VIX, the barometer of uncertainty, closed at a higher level of 29+ and indicates a more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 39.22 levels and MACD closed below the signal line. Market may continue to witness some range bound weak movements in forthcoming session amidst higher volatility”.
FAIRWEALTH SECURITIES: “Nifty is expected to trade in the range 4730-4830. Below this range 4690 may act as support level while 4848 and 4890 might be strong resistance levels. In Bank Nifty 8470 might be a crucial support level”.
VIEWS FROM DIFFERENT BROKING HOUSES:
CANARA BANK SECURITIES (CanMoney): “Technically, after exhibiting significant falls in last session, Nifty witnessed a very volatile session and closed with significant cuts besides breaching the sanctity of 4800 level. Level wise, closing below the vital 4800 levels may depict strength of the bears in the forthcoming sessions. Broader market witnessed weak sentiment; all segments like small-cap, mid-cap and large-cap were under sellers’ grip. Owing to this, bears outnumbered the bulls with significant margin. Due to continued selling Nifty closed below its vital 9, 14, 50 & 100 day’s SMA placed at 4922, 4867, 5015 & 5097. VIX, the barometer of uncertainty, closed at a higher level of 29+ and indicates a more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 39.22 levels and MACD closed below the signal line. Market may continue to witness some range bound weak movements in forthcoming session amidst higher volatility”.
FAIRWEALTH SECURITIES: “Nifty is expected to trade in the range 4730-4830. Below this range 4690 may act as support level while 4848 and 4890 might be strong resistance levels. In Bank Nifty 8470 might be a crucial support level”.
BONANZA ONLINE: “Nifty showed one sided selling pressure from 4,900 levels. Selling was seen in almost all major sectors, except IT sector. Near term support is at 4,690. If Nifty breaks below this level, further selling pressure may be seen. Also, Nifty has major resistance at 4,920. So, for further decisive uptrend, it has to sustain above this level. For daily purpose, trend deciding level is at 4,815. If Nifty shows strength above 4,815 levels, then rally to 4,840/4,920/4,975 may be seen. If Nifty does not show strength above 4,815 levels then selling pressure till 4,690/4,640 may also be seen”.
KARVY STOCK: “The market will take cues from the global markets and is expected to open on a negative note tomorrow. Trade short in the Nifty at 4,780 levels with a stop loss of 4,800, for targets of 4,750-4,720 levels”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “Nifty today came to a close around 4,760 as expected. The overall outlook still remains weak and we may see some more selling tomorrow. But a minor bounce back is expected from Wednesday as the headline inflation, which will come out on Wednesday, is expected to ease further and RBI is meeting on 16th to review the interest rate situation. For Nifty the major support is there at 4,710 and 4,655 while the resistance is there at 4,864 and 4,964 levels”.
GEPL CAPITAL: “The intraday chart of Nifty Futures is suggesting continuation of the current downtrend where the earlier low near 4630 is likely to attain. Higher trading volumes of last 3 days and a sell indication from short term RSI are suggesting bearish sentiments to prevail for next few trading sessions. Any bounce back in Nifty Futures is likely to face strong resistance in the zone of 4850-4880 where short selling can be initiated with the stop loss of 4950. No fresh long positions are recommended as daily and weekly charts of Nifty Futures are in downward direction. The intermediate trend of Nifty Futures will remain in downward direction till the weekly close is below 5275 mark. The intraday resistance levels for Nifty Futures are placed at 4790 & 4840 and support levels are placed at 4700 & 4630 respectively”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The market unfolded as expected and technically the market is still weak with strong resistance around 4850 mark and downside open. The support for the Nifty is at 4737-4700 and resistance at 4850-4950”.
ANGEL BROKING (Technical): “Indices opened on an optimistic note but selling pressure at higher levels dragged indices lower and negated ‘Spinning Top’ formation mentioned in our earlier report. Subsequently, the market corrected sharply to test expected support level of 15850/4754 and closed marginally above it. The negative crossover in ‘3 & 8 EMA’ as well as in ‘RSI’ momentum oscillator is still intact. Therefore, going forward, if indices manage to sustain below 15850/4754 they may drift towards 15645–15478/4693–4639. On the upside, 16045–16142/4782–4841 levels are likely to act as resistance in coming trading sessions. Only a move above this can push indices higher to test 16383/4918 level”.
MICROSEC SECURITIES: “The daily chart of Nifty is showing that it has taken support at 4700 several times. So the level of 4700 is a short term crucial base of Nifty. If Nifty is able to maintain below this level, it may further go down to 4530 and then 4400. Nifty to turn positive, it has to consolidate above 4920 and a breach of 4920 would likely to take Nifty higher to 5110. Traders are advised to maintain a strict stop loss at 4700 of the long positions. On an intra-day basis Nifty has a support at 4700 and is likely to face a stiff resistance near 4800. If Nifty breaks 4700, it may further go down to 4640 and then 4600. However, if it is able to sustain above 4800, the level of 4860–4920 would become the next target”.
ANGEL BROKING (Technical): “Indices opened on an optimistic note but selling pressure at higher levels dragged indices lower and negated ‘Spinning Top’ formation mentioned in our earlier report. Subsequently, the market corrected sharply to test expected support level of 15850/4754 and closed marginally above it. The negative crossover in ‘3 & 8 EMA’ as well as in ‘RSI’ momentum oscillator is still intact. Therefore, going forward, if indices manage to sustain below 15850/4754 they may drift towards 15645–15478/4693–4639. On the upside, 16045–16142/4782–4841 levels are likely to act as resistance in coming trading sessions. Only a move above this can push indices higher to test 16383/4918 level”.
MICROSEC SECURITIES: “The daily chart of Nifty is showing that it has taken support at 4700 several times. So the level of 4700 is a short term crucial base of Nifty. If Nifty is able to maintain below this level, it may further go down to 4530 and then 4400. Nifty to turn positive, it has to consolidate above 4920 and a breach of 4920 would likely to take Nifty higher to 5110. Traders are advised to maintain a strict stop loss at 4700 of the long positions. On an intra-day basis Nifty has a support at 4700 and is likely to face a stiff resistance near 4800. If Nifty breaks 4700, it may further go down to 4640 and then 4600. However, if it is able to sustain above 4800, the level of 4860–4920 would become the next target”.
PRABHUDAS LILADHER: “We believe the markets would continue to remain range bound between 4700 to 5300 range. Strong implementation of policy prescriptions by the embattled European governments, emergence of semblance of political consensus on fiscal consolidation in the US and strong policy action from the somnolent Indian government to kick start reforms and give a strong policy push can offer succour to the equity markets. The solution clearly lies primarily with politicos both globally and locally”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 16,024 / 4,810 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,207–16,544/4,865–4,965 levels. However, if Nifty trades below 16,024/4,810 levels for the first half-an-hour of trade then it may correct up to 15,687–15,503/4,710–4,655 levels”.
INDIRATRADE SECURITIES: “Bad IIP data took their toll on the markets with both benchmark indices breaching their psychologically important levels of 16,000 and 4800, respectively. Barring IT, all sectoral indices closed negative with metal being the worst among them. Other sectors with substantial losses were oil & gas, banking, realty, auto and capital goods. For today’s trade market likely to trade in the range between 4780 & 4840 in the upper side and 4740 & 4680 in the lower side”.
HEM SECURITIES: “Key benchmark indices extended intraday losses in late trade as data showing decline in industrial production in October 2011 for the first time in more than two years and weak European stocks dampened sentiment. The benchmark index Nifty shed close to 150 points from its day high and now heading back to 4700 mark, key support area. For tomorrow, markets are expected to be downward”.
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