The key benchmark indices had a flat closing on Tuesday, 28 December 2010. Seven out of 13 sectoral indices on BSE were positive. Selling was witnessed in oil & gas, PSU and auto stocks while defensives like FMCG and healthcare stocks ended higher. The BSE 30-share Sensex fell 3.51 points or 0.02% at 20,025.42. The Sensex rose 61.48 points at the day's high of 20,090.41 in early trade. The index shed 47.17 points at the day's low of 19,981.76 in afternoon trade.
The S&P CNX Nifty fell 2.10 points or 0.04% at 5996. It gyrated between a high of 6010.90 and low of 5982.25 in the day.
The BSE Mid-Cap index rose 0.07%. The BSE Small-Cap index rose 0.33%. Both the indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. The breadth had turned negative in afternoon trade. On BSE, 1433 shares declined while 1391 shares rose. A total of 190 shares remained unchanged. Among the 30-member Sensex pack, 18 gained, 11 declined and one was unchanged.
BSE clocked turnover of Rs 2604 crore lower than Rs 3065.31 crore on Monday, 27 December 2010.
Volumes were thin as market participation was low from institutional investors ahead of year ending.
Gold Ends Higher in Thin Trading: Gold prices crept higher amid thin trading, a weaker dollar and year-end position squaring.
GLOBAL NEWS:
Consumers Get Back Some Confidence: Better, it would seem, given generally upbeat expectations for December consumer-confidence data, due Tuesday from the Conference Board. Economists forecast the index climbed to 56 from 54.1 in November. That would mark the highest reading in seven months. Initially upbeat holiday sales also point to a firming of consumer sentiment.
Euro Gains on Dollar, Yen : The euro rose against the dollar and yen Monday in a weather and holiday-induced quiet day of trading.
The few traders in the market brushed aside initial concerns about China's interest-rate increase, opting to send the euro higher. The light volume added to the choppiness of trading
::VIEWS FROM SOME BROKERAGE FIRMS::
BONANZA PORTFOLIO:
“The market is expected to consolidate in a range of 5,850/6,150. The market can be expected to be volatile as expiry of derivative contracts is due next Thursday”.
CANARA BANK OF SECURITIES (CANMONEY):
Technically, Nifty exhibited a much ranged show and despite continuous oscillation around the sentimental support level of 6,000, closed marginally below that, which is a bad news for the bulls. Owing to good buying in defensive space and mainline IT and Tech stocks, Nifty exhibited a good consolidation and closed with marginal cuts. At the end, Nifty managed to close above its 9 (5,973), 14 (5,938) and 100 day`s (5,885) SMA level but closed below 50 day`s SMA placed at 6,013; these levels may act as new ranges, in coming sessions. VIX for the day closed at lower level of 18.31% and indicating less volatility in market in the forthcoming sessions. RSI (14) for the day was at 52.60 levels and MACD was above the signal line, thus combined together they are giving the signals that market may remain sideways for some time.
GEOJIT BNP PARIBAS FINANCIAL SERVICES:
“The markets are expected to remained rangebound with a sideways trend. Nifty range would be 6067 on the upside and 5938 on the downside”.
ANGEL BROKING HOUSE:
“Market opened on a subdued note and traded in a narrow band throughout the day to close flat. On the daily chart, we are witnessing a narrow range body formation for second consecutive trading session which reflects indecisiveness and no clarity of the trend. We maintain our previous day view that if indices trade convincingly above 20,115/6,020 levels then they are likely to test 20,160-20,217/6,050-6,070 levels. On the downside, 19,875-19,798/5,950-5,928 levels may act as supports for the day”.
ANGEL BROKING HOUSE has recommended “Accumulate” on JSW Steel with a price target of Rs 1,310 as against the market price (CMP) of Rs 1,212.
JRG SECURITIES : MAJOR RESISTANCE IS SEEN AT 6054
“Amongst the key Indian Indices, The NSE Nifty is seen opening above its critical level of 5,982 wherein any upside in the morning shall face resistance around 6,024. The market requires some triggers for any move after this, which is absent nowadays. If the index sustains above 6,024, then there can be some momentum towards the major resistance at 6,054. Nevertheless below critical support, technicals are weak and Nifty could slowly slip towards its support at 5,954. Any fall below this may infuse more selling pressure which may take the index towards the major support at 5,915”.
KESHAV SECURITIES:
“For today, the support of 5,965 is most important level to watch. The decisive breach of 5,965 can push the index towards 5,935 on intraday basis. If Nifty cash sustains above 5,965 then it may rise towards 6,000 on intraday basis”.
GABA FINANCIAL ADVISORS (PRAKASH GABA):
“Technically the market is still in a sideways zone with a positive bias. The market unfolded typically sideways, ¦opened strong and sold off during the day and closed marginally in the red. Technically the market is still in a sideways mode”.
“The crucial support on the downside for the Nifty is 5,950-5,922 and resistance at 6,090-6,125. For Sensex, the crucial support on the Sensex on the downside is 19,900-19,764 and resistance at 20,217”.
EMKAY GLOBAL: Buy on dips (28.12.10)
After a healthy opening above the 6000 mark, Nifty was just hovering around that mark, led by a sell-off in the second half. Overall the trend is still bullish as the higher top higher bottom on hourly chart is still intact. Also, Nifty is seeing constant demand inching in near its 20- and 50- HSMA in recent past. So as long as the higher top higher bottom formation and the hourly moving averages are intact, the viewpoint remains bullish and one should look for buying of dips near 50% (i.e. 5993) and 61.8% (i.e. 5980) retracement level for the target of 6080.
Bank Nifty is trading within a broad range of 300 odd points and the break above 11571 or below 11411 will be a good opportunity to initiate a fresh intraday trade for the coming session.
ACCUMULATE BANK OF BARODA for a target of 1160, ROLTA for a target of 171, HINDALCO for a target of 266, ORCHID CHEM for a target 315 and TVS MOTOR for a target of 81.
ICICI SECURITIES:
Nifty: The Nifty is likely to trade in the range of 5990-6050. The trading strategy would be to create long positions if the Nifty takes support at around 6000 levels for targets of 6020 and 6040. On the other hand, one can also create short positions if the Nifty resists at around 6047 levels.
Bank Nifty: The Bank Nifty is likely to trade in the range of 11250-11620. Trade short till it resists 11620 else long positions can be initiated for a target of 11620.
NOTE: The above views from Emkay Global and ICICI Securities are for 28.12.2010 but still stands for 29.12.2010.
MUST READ:
ICICI SECURITIES (TILL IT VALID FOR 29.12.2010):
DERIVATIVE: https://acrobat.com/#d=hellaVoEIGR8BSoLnY-0eg
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OPENING BELL:
FOR TRADING: I am leaving for Kolkata tomorrow and will be there till 4th of January, 2011. Probably it will not be possible to update the blog on regular basis. Last time, I faced problem with the airtel device in Kolkata.
SO, I AM SORRY; TRADE SAFE AND LIGHT. ALWAYS PUT YOUR STOPLOSS AS PER YOUR RISK TAKING APETITE.TILL THEN, A VERY VERY HAPPY NEW YEAR 2011 TO ALL OF YOU AND YOUR FAMILY MEMBERS TOO.
