HEM SECURITIES:”Today the benchmark Indices are likely to open negative as most of the Asian stocks are trading as concern mounted Europe`s debt crisis will spread and South Korea said it will proceed with an artillery drill that has prompted threats of retaliation from North Korea”.
Today, Nifty would have a support at 5,889 and resistance at 5,996 and BSE Sensex has support at 19,712 and resistance at 19,996.
ANGEL BROKING: “The trend deciding level for the day is 19,772 / 5,920 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,990 - 20,115 / 5,985 - 6,021 levels. However, if Nifty trades below 19,772 / 5,920 levels for the first half-an-hour of trade then it may correct up to 19,647 - 19,429 / 5,884 - 5,819 levels”.
ANAGRAM: “After previous week`s meltdown, last holiday shortened week came as a relief as benchmark indices gained a percent and a half, albeit after a bit of volatility. Nifty finally settled at 5,948, gaining 91 points or 1.6% week-on-week. Nifty made a bottom of 5,855 during the week, which is higher than the previous bottom of 5,721 made on December 10. Now if Nifty was to close above 5,954, the immediate previous top, that would complete the higher-top higher-bottom formation, turning the technical view bullish. The next target then would be 6,069, the high made on December 6. On the downside, 5,855, last week`s low is the support level to watch out, a fall below which can take Nifty to 5,721, the bottom made on December 10. Traders can initiate long positions once Nifty closes above 5,954 with the stop loss of 5,855. Tata Steel will be in focus as reports suggest that the company is negotiations to dispose of its South African plant and assets. The stock of Patni will be excited over the reports that a new investor could take charge of the company very soon”.
U.S. stocks ended little changed on Friday, hovering at two-year highs hit in the previous session, as President Obama signed a tax-cut plan into law. For the week, the major indexes each gained less than a percent
IIFL: “With hardly any effort from the bulls to shore up sentiment, today`s start is likely to be flat to steady. FIIs have taken some money off the table and may remain on the sidelines for a while.”
It has been rather volatile of late as far as the Indian market is concerned and the trend might not change much for the remainder of December.
The RBI has taken the much expected pause in rate tightening while announcing measures to ease the cash crunch. Inflation seems to have softened but still remains a threat. Hero Honda will remain in focus in the wake of the formal break-up with Honda.
FIIs were net sellers of Rs 3.16 billion in the cash segment on Thursday, according to the provisional NSE data. The domestic institutional institutions were net sellers at Rs 960.3 million.
SHAREKHAN: “The renewed worries over the euro zone debt crisis have hit the markets across the globe. After gaining in the previous week, the Indian markets may take a pause and start the session on a cautious note tracking negative world markets”.
However, the Indian markets have been struggling in the absence of fresh leads and are also heavily dependent on foreign fund inflows. The Indian markets, which have seen a record foreign inflows since the beginning of June, is witnessing a trend reversal.
GEOJIT PNB PARIBAS: “The key benchmark indices may edge lower in early trade on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate a fall of 7.50 points at the opening bell.”
ANAGRAM (FNO outlook): “Markets staged a mild recovery last week, much on the anticipated lines. Markets were UP on three out of four sessions last week. On weekly basis, Nifty posted gains 91 points (or 1.56% rise). This was in the back-drop of 2.26% fall in the previous week. However this `recovery` lacks volume support. Year-end Profit-taking by FIIs and dis-appointing cues from global arena could still haunt market and may arrest any big rallies that may come. Sharp jump in Nifty OI PCR to 1.26 over the week and also sharp rise in Nifty Future December `Premium` is suggestive `short-covering` on Index. Going by Option-distribution pattern, markets are likely to hold-on to strong support zone between 5,700-5,800 levels of Nifty. In the coming week, markets by and large are likely to stay ranged and volatile (due to lower volumes) between 5750~6100 levels of Nifty.”
TRADE LIGHT; TRADE WITH STOPLOSS.
