On Monday, Nifty closed at 5333.50, up 64.45 points over its previous close and closed near its day’s high (5345). The market breadth remained quite positive as out of 2985 stocks traded on BSE, 1767 stocks ended with gains, 1078 stocks declined and 140 stocks ended flat. The market sentiment turned buoyant after firm opening of European bourses. The NF (closed at 5339.95) remains positive and may move up further to 5367 (recent high) and/or 5399 once it trades and remains above 5354. Strong support for the NF exists at 5311 which if breached decisively with volumes then NF may slide to 5288/5274.
IMPORTANT CLUES:: At the G-20 meet, the leaders declared the intention of advanced economies to cut their deficits by half by 2013. This will limit their bond issues and consequently the US bonds hit new highs. The spending cuts may lead to the weakening of the present recovery which was achieved on the back of Government and Central Bank support. Paul Krugman, a noted economist, has commented that the planned spending cuts by the advanced economies may pave the way for the third depression.The market will be eagerly waiting the sales and dispatch numbers of auto and cement manufacturers this week which may prove crucial to set the market trend besides the Global cues.
The SGX Nifty suggests a flat to negative opening today.
Asian Markets are mixed. Except Nikkei, all major Asian markets are trading flat to negative.
FOR TODAY: Market is expected to trade in a range. Nifty future may trade around 5280-5380. However, 5400-5410 may act as a strong resistance zone, sustaining above this level may attract huge buying interest. Some banking heavyweights still have rooms for correction. Nifty has a minor support at 5304. If it breaks 5300, intraday
trend will be negative and it may go down further to 5280 and 5260.
SBI Cap securities:: BANK OF BARODA Accumulate around 695 - 670; CMP: 693 Target: 763.
trend will be negative and it may go down further to 5280 and 5260.SBI Cap securities:: BANK OF BARODA Accumulate around 695 - 670; CMP: 693 Target: 763.
Fairwealth Management:: Some banking heavyweights still have rooms for correction.
TODAY'S IDEA:: 1. Buy HCLTECH around 362 with a strict stoploss of 355 for a target of 369 and 375
2. Buy BANKNIFTY FUT above/around 9580 with a strcit stoploss of 9540 for a target of 9625 and 9680
3. Sell NIFTY FUT below 5328 with a strict stoploss of 5353 for a target of 5310 and 5285
4. Buy BANKBARODA FUT above/around 710 with a strict stoploss of 706 for a target of 720 and 730 (holding till this expiry)
5. Buy BHEL FUT above/around 2493 with a strict stoploss of 2472 for a target of 2515 and 2544 (within this week)
5. Buy BHEL FUT above/around 2493 with a strict stoploss of 2472 for a target of 2515 and 2544 (within this week)
6. Buy DLF above/around 294 with a strict stoploss of 288 for a target of 300 and 306 (within this week)
Note: Trading in FNO is very risky. Please Read warning carefully before initiating any trade as per above views.