Market snaps 3-day losing streak on hopes of RBI rate cut next year to support flagging economic growth and closed just above their psychological levels of 16,000 and 4800, respectively. At the close, the benchmark 30-share index, BSE Sensex added 132.16 points or 0.83% at 16,002.51 with 25 components registering rise. Meanwhile, the broad based NSE Nifty climbed by 36 points or 0.76% at 4,800.60 with 38 components posting rise.
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: “Today, we expect the Indian Markets to open in the red and trade in a range through the day. If today inflation figures are disappointing, the possibility of CRR rate cut gets reduced and markets could take this negatively”.
CANARA BANK SECURITIES (CanMoney): “Technically, after exhibiting significant falls in last session, Nifty witnessed a very volatile session and closed with significant gains besides regaining support of 4800 level. Level wise, closing above the vital 4800 levels may depict strength of the bulls in the forthcoming sessions. Broader market witnessed weak sentiments, segments, like small-cap, mid-cap were under sellers’ grip. Owing to this, bears outnumbered the bulls with significant margin. Due to selling Nifty continued to close below its vital 9, 14, 50 & 100 day’s SMA placed at 4921, 4866, 5012 & 5089. VIX, the barometer of uncertainty, closed at a higher level of 28+ and indicates a more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 41.60 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 4777-4888. If sustained above this level Nifty may test 4915-4949. Below 4777, Nifty may find support near 4750 and 4700. Bank Nifty may face heavy resistance around 8800”.
BONANZA ONLINE: “Nifty showed good strength from support in 4,730-4,700 zone and closed in green at 4,800 levels. Bulls are trying to enter from lower levels However, Nifty also has resistance at 4,900-4,950 zone on upside. Buying interest may be continuing above 4,800 levels else profit booking may be seen. For daily purpose, Trend deciding level is 4800. If Nifty shows strength above 4800 levels, then rally to 4850/4900/4950 may be seen. If Nifty does not show strength above 4800 levels then selling pressure till 4730-4700/4650 may also be seen”.
BONANZA PORTFOLIO (Shanu Goel): “The short term trend of the market has turned bearish but since this week is eventful in terms of domestic announcements, volatility will rule the trend. Upcoming announcements include Nov monthly inflation figure, third advance tax instalment is due on 15 December, which are likely to provide cues for Q3 FY12 earnings and monetary policy is scheduled for Dec. 16. Important support exists at 4,700-4,705 levels”.
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, if Nifty breaks 4800-4820 levels with a stoploss placed at 4780 for targets of 4,850-4,900. Alternatively trade short if Nifty slips below support level of 4,780”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “Tomorrow we are going to see the headline inflation number for the month of November. We may see some more pull back as a continuation of today’s uptrend but still the technical indicators have not given a buy indication. For Nifty the major support is there at 4744 and 4700 while the resistance is there at 4840 and 4881 levels. Investors should be cautious at higher levels. On the sectoral front, we saw short covering in metal, oil, auto and power while profit taking was seen in consumer durable and capital goods. PSU oil marketing companies gain as crude fell while oil exploration companies felt the heat. IT stocks continued to gain as rupee plunged to record low”.
GEPL CAPITAL: “Nifty Futures is likely to show a bounce back which will face a strong resistance in the zone of 4850-4900 where again selling pressure may be seen. Short selling is recommended in Nifty Futures in the above mentioned zone of 4850-4900 with the stop loss of 4950 and target below 4750. Till Nifty Futures trades below 5000 the trend is expected to remain in downward direction. The breakdown of 4730 will show immediate fall of around 100 points in Nifty Futures, testing the earlier bottom of 4630 levels. 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 4850 & 4900 and support levels are placed at 4750 & 4700 respectively”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “Technically the market is still weak and a volatile action is not ruled out…strong resistance is around 4850-4870. The support for the Nifty is at 4737-4700 and resistance at 4850-4950”.
ANGEL BROKING (Technical): “After a gap down opening, Indices drifted lower and registered a low of 15771/4728 during the initial hour of the trade. However, a sharp recovery in the last hour of trade pushed indices higher to close at 16000/4800 mark. We are now observing that indices have taken a support near 78.60% Fibonacci Retracement level of the rise from 15478 to 17704/4639 to 5100 and bounced sharply from that point. Therefore, going forward, if indices manage to sustain above yesterday’s high of 16080/4825, then they are likely to move towards 16142–16383/4841–4918 levels. On the downside, yesterday’s low of 15771/4728 would act as support in coming trading session. A breach of this low may attract selling pressure and indices then may slide towards the recent bottom of 15478/4639”.
MICROSEC SECURITIES: “Nifty has been facing a strong support at 4700 for last few months. 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 4760 and is likely to face a stiff resistance near 4830. If Nifty breaks 4760, it may further go down to 4720 and then 4700. However, if it is able to sustain above 4830, the level of 4860–4920 would become the next target”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 15,951/4,785 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,131–16,259/4,841–4,881 levels. However, if Nifty trades below 15,951/4,785 levels for the first half-an-hour of trade then it may correct up to 15,823–15,643/4,745–4,688 levels”.
INDIRATRADE SECURITIES: “On Tuesday the markets closed with substantial gains and both benchmark indices managed to close above their psychologically important levels of 16,000 and 4800, respectively. Barring capital goods and consumer durables, all sectoral indices closed positive. Metal, oil & gas and auto remained the biggest gainers in today's session and banking and IT, too, took part in supporting the indices. For today’s trade market likely to trade in the range between 4825 & 4870 in the upper side and 4770 & 4740 in the lower side”.
JRG EQUITY RESEARCH (IndiTrade): “The Indian markets may open in a narrow range today as weak overseas markets and caution ahead of the November inflation data today. The Critical support level for the day is at 4782 and the market may move sideways till the inflation data releases. A less than 9% inflation can trigger an up-move in markets and it can target 4815 on the first attempt. If the index consolidates above 4815 and if we get positive cues from global markets, then, slowly the benchmark may move towards the higher target of 4862.However if inflation comes higher then below 4782,we may see selling pressure coming back to the market, and the benchmark may try to find lower support at 4740. Below this, fresh round of selling can drag the index towards the support at 4718”.
EDELWEISS FINANCIAL ADVISORS: “On the hourly chart Nifty had already retraced 50% of the recent fall from 4942 to 4731. Beside this oscillator on the hourly chart are trading in positive territory, thus if nifty starts trading above 4836 levels then further upside can be witnessed till 4860 levels. However, short term oscillators on daily chart are still trading in negative territory. Also, Nifty continues to trade below 21DEMA. Thus going forward we retain our bearish outlook on Nifty and if it starts trading below 4754, then we can see further downside till 4639 levels. Any technical bounce back rally should be used as an exit from the long positions and opportunity for fresh shorts. Near term Nifty has resistance at 4940 which is the 21DEMA and breach of this level may lead to rally till 5110”.
NIRMAL BANG SECURITIES: “Yesterday we have seen a short covering from the support of 4720 level and kept a good closing above the 4800 level. Any move above 4840 will take a Nifty towards 4870/4910 levels which is the gap resistance. Nifty support is at 4760/4740”.
INVENTURE GROWTH & SECURITIES: “Volatility in stocks is extremely high and traders should remain cautious and nimble footed. Trading with stoploss and book profits regularly is the main mantra. Nifty has upside resistance at 4880-4932. And on the downside, supports come at 4,720-4,630”.
FOR TECHNICALS/DAY CALLS, “READ HERE”
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: “Today, we expect the Indian Markets to open in the red and trade in a range through the day. If today inflation figures are disappointing, the possibility of CRR rate cut gets reduced and markets could take this negatively”.
CANARA BANK SECURITIES (CanMoney): “Technically, after exhibiting significant falls in last session, Nifty witnessed a very volatile session and closed with significant gains besides regaining support of 4800 level. Level wise, closing above the vital 4800 levels may depict strength of the bulls in the forthcoming sessions. Broader market witnessed weak sentiments, segments, like small-cap, mid-cap were under sellers’ grip. Owing to this, bears outnumbered the bulls with significant margin. Due to selling Nifty continued to close below its vital 9, 14, 50 & 100 day’s SMA placed at 4921, 4866, 5012 & 5089. VIX, the barometer of uncertainty, closed at a higher level of 28+ and indicates a more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 41.60 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 4777-4888. If sustained above this level Nifty may test 4915-4949. Below 4777, Nifty may find support near 4750 and 4700. Bank Nifty may face heavy resistance around 8800”.
BONANZA ONLINE: “Nifty showed good strength from support in 4,730-4,700 zone and closed in green at 4,800 levels. Bulls are trying to enter from lower levels However, Nifty also has resistance at 4,900-4,950 zone on upside. Buying interest may be continuing above 4,800 levels else profit booking may be seen. For daily purpose, Trend deciding level is 4800. If Nifty shows strength above 4800 levels, then rally to 4850/4900/4950 may be seen. If Nifty does not show strength above 4800 levels then selling pressure till 4730-4700/4650 may also be seen”.
BONANZA PORTFOLIO (Shanu Goel): “The short term trend of the market has turned bearish but since this week is eventful in terms of domestic announcements, volatility will rule the trend. Upcoming announcements include Nov monthly inflation figure, third advance tax instalment is due on 15 December, which are likely to provide cues for Q3 FY12 earnings and monetary policy is scheduled for Dec. 16. Important support exists at 4,700-4,705 levels”.
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, if Nifty breaks 4800-4820 levels with a stoploss placed at 4780 for targets of 4,850-4,900. Alternatively trade short if Nifty slips below support level of 4,780”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “Tomorrow we are going to see the headline inflation number for the month of November. We may see some more pull back as a continuation of today’s uptrend but still the technical indicators have not given a buy indication. For Nifty the major support is there at 4744 and 4700 while the resistance is there at 4840 and 4881 levels. Investors should be cautious at higher levels. On the sectoral front, we saw short covering in metal, oil, auto and power while profit taking was seen in consumer durable and capital goods. PSU oil marketing companies gain as crude fell while oil exploration companies felt the heat. IT stocks continued to gain as rupee plunged to record low”.
GEPL CAPITAL: “Nifty Futures is likely to show a bounce back which will face a strong resistance in the zone of 4850-4900 where again selling pressure may be seen. Short selling is recommended in Nifty Futures in the above mentioned zone of 4850-4900 with the stop loss of 4950 and target below 4750. Till Nifty Futures trades below 5000 the trend is expected to remain in downward direction. The breakdown of 4730 will show immediate fall of around 100 points in Nifty Futures, testing the earlier bottom of 4630 levels. 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 4850 & 4900 and support levels are placed at 4750 & 4700 respectively”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “Technically the market is still weak and a volatile action is not ruled out…strong resistance is around 4850-4870. The support for the Nifty is at 4737-4700 and resistance at 4850-4950”.
ANGEL BROKING (Technical): “After a gap down opening, Indices drifted lower and registered a low of 15771/4728 during the initial hour of the trade. However, a sharp recovery in the last hour of trade pushed indices higher to close at 16000/4800 mark. We are now observing that indices have taken a support near 78.60% Fibonacci Retracement level of the rise from 15478 to 17704/4639 to 5100 and bounced sharply from that point. Therefore, going forward, if indices manage to sustain above yesterday’s high of 16080/4825, then they are likely to move towards 16142–16383/4841–4918 levels. On the downside, yesterday’s low of 15771/4728 would act as support in coming trading session. A breach of this low may attract selling pressure and indices then may slide towards the recent bottom of 15478/4639”.
MICROSEC SECURITIES: “Nifty has been facing a strong support at 4700 for last few months. 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 4760 and is likely to face a stiff resistance near 4830. If Nifty breaks 4760, it may further go down to 4720 and then 4700. However, if it is able to sustain above 4830, the level of 4860–4920 would become the next target”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 15,951/4,785 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,131–16,259/4,841–4,881 levels. However, if Nifty trades below 15,951/4,785 levels for the first half-an-hour of trade then it may correct up to 15,823–15,643/4,745–4,688 levels”.
INDIRATRADE SECURITIES: “On Tuesday the markets closed with substantial gains and both benchmark indices managed to close above their psychologically important levels of 16,000 and 4800, respectively. Barring capital goods and consumer durables, all sectoral indices closed positive. Metal, oil & gas and auto remained the biggest gainers in today's session and banking and IT, too, took part in supporting the indices. For today’s trade market likely to trade in the range between 4825 & 4870 in the upper side and 4770 & 4740 in the lower side”.
JRG EQUITY RESEARCH (IndiTrade): “The Indian markets may open in a narrow range today as weak overseas markets and caution ahead of the November inflation data today. The Critical support level for the day is at 4782 and the market may move sideways till the inflation data releases. A less than 9% inflation can trigger an up-move in markets and it can target 4815 on the first attempt. If the index consolidates above 4815 and if we get positive cues from global markets, then, slowly the benchmark may move towards the higher target of 4862.However if inflation comes higher then below 4782,we may see selling pressure coming back to the market, and the benchmark may try to find lower support at 4740. Below this, fresh round of selling can drag the index towards the support at 4718”.
EDELWEISS FINANCIAL ADVISORS: “On the hourly chart Nifty had already retraced 50% of the recent fall from 4942 to 4731. Beside this oscillator on the hourly chart are trading in positive territory, thus if nifty starts trading above 4836 levels then further upside can be witnessed till 4860 levels. However, short term oscillators on daily chart are still trading in negative territory. Also, Nifty continues to trade below 21DEMA. Thus going forward we retain our bearish outlook on Nifty and if it starts trading below 4754, then we can see further downside till 4639 levels. Any technical bounce back rally should be used as an exit from the long positions and opportunity for fresh shorts. Near term Nifty has resistance at 4940 which is the 21DEMA and breach of this level may lead to rally till 5110”.
NIRMAL BANG SECURITIES: “Yesterday we have seen a short covering from the support of 4720 level and kept a good closing above the 4800 level. Any move above 4840 will take a Nifty towards 4870/4910 levels which is the gap resistance. Nifty support is at 4760/4740”.
INVENTURE GROWTH & SECURITIES: “Volatility in stocks is extremely high and traders should remain cautious and nimble footed. Trading with stoploss and book profits regularly is the main mantra. Nifty has upside resistance at 4880-4932. And on the downside, supports come at 4,720-4,630”.
FOR TECHNICALS/DAY CALLS, “READ HERE”
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