NIFTY HITS 5700 MARKS !!!
The key benchmark indices edged lower in a choppy trade to hit six-week closing lows. The market sentiment was edgy due to recent heavy selling by foreign funds and on continued worries the central bank may hike interest rates to tame inflation.
The BSE 30-share Sensex was down 27.78 points or 0.14% to 19,196.34, its lowest closing level since 26 November 2010. The Sensex gained 207.44 points at the day's high of 19,431.56 in early trade. The index lost 220.52 points at the day's low of 19,003.60 in late trade.
The S&P CNX Nifty was down 8.75 points or 0.15% at 5,754.10, its lowest closing level since 26 November 2010. Nifty had slipped to an intra-day low of 5,698.20 in late trade.
The market breadth was weak, having swung between positive and negative zone throughout the day. On BSE, 1787 shares declined while 1121 shares gained. A total of 102 shares remained unchanged.
The BSE clocked turnover of Rs 3407 crore, lower than Rs 3516.59 crore on Monday, 10 January 2011.
The BSE Mid-Cap index fell 0.67% and BSE Small-Cap index declined 0.87%. Both the indices underperformed the Sensex.
Among the 30-member Sensex pack, 16 gained while the rest slipped.
NSE's volatility index, India VIX, declined to 22.33% from Monday's (10 January 2011) close of 23.16%.
Banking stocks and select auto stocks staged a comeback on bargain hunting. But, IT stocks declined on profit taking ahead of sector bellwether Infosys' Q3 December 2010 earnings on Thursday, 13 January 2011. Index heavyweight Reliance Industries (RIL) slipped below the Rs 1,000 mark only to regain that level in late trade.
The key benchmark indices surged in opening trade on bargain hunting after a five-day steep fall. Volatility struck bourses in morning trade as the key benchmark indices rebounded sharply from negative zone after an initial rally. The market erased almost all the intraday gains in early afternoon trade. The market regained strength in afternoon trade. Wild intraday swings were witnessed in the key benchmark indices in mid-afternoon trade. The market hit a 6-week low after a sudden sell-off in late trade. The market bounced back in the last half-an-hour of trade.
The Government will announce industrial output data for the month of November on Wednesday, 12 January 2011. Industrial output soared 10.8% in October 2010. The output of six key infrastructure sectors grew 2.3% in November 2010 from a year ago, the slowest pace in the last 21 months, raising the prospects of a drop in industrial growth for the month. The six core industries -- crude oil, petroleum refining, coal, electricity, cement and finished steel, have a combined weight of 26.7% in the index of industrial production and are considered an advance indicator of industrial activity. These sectors had grown an upwardly revised 8.6% in October 2010.
The Government will announce inflation data for the month of December 2010 on Friday, 14 January 2011. The benchmark wholesale-price inflation cooled to near a one-year low of 7.48% in November 2010.
VIEWS FROM SOME BROKING HOUSES:
FAIRWEALTH SECURITIES:
“Indian market took a good positive start and faced heavy selling pressure at higher levels; as a result indices took a deep dip but good buying especially in banking stocks took market again above the dotted line. Profit booking was seen in IT and along with oil & gas and Realty. The Sensex closed at 19196, down 28 points from its previous close, and Nifty closed at 5754, down 9 points”.
“In the next session, Nifty has built a strong support at 5,690. Now, traders may stay long as long as Nifty holds 5,690. Banking heavyweights, FMCG and auto may attract buying while real-estate and oil-gas may appear weak”.
BONANZA PORTFOLIO (PUNEET KINRA):
Nifty opened on a positive note at 5,767.95 levels and showed volatility throughout the day. Nifty made high at 5,842.60 levels but selling pressure was seen from resistance near 5,850 levels and Nifty made low at 5,698.20 levels. However, excellent recovery was seen from days low and Nifty closed on flat note in red at 5,754.10 levels with 8.75 points loss.
“On Tuesday, Nifty showed volatile session and closed on flat note. After showing selling pressure for five consecutive days, Nifty made long leg Doji candlestick pattern which shows indecision among bulls and bears at current levels. Nifty`s short term trend is still down. Nifty has important support in 5,750-5,690 range, if Nifty hold support then short covering may be seen. If Nifty does not hold support levels then selling pressure till 5,550-5,450 may also be seen”.
“For daily purpose, the trend deciding level is at 5,750. If Nifty shows strength above 5,750 levels, then rally to 5,800/5,850/5,900-5,925 levels may be seen. If Nifty does not show strength above 5,750 levels then selling pressure till 5,690/5,650/5,550 levels may also be seen”.
ICICI SECURITIES:
“Bank Nifty ATM IVs are near resistance levels. However, Reliance ATM IV is near support levels. If the historical trend is held, Bank Nifty may trade with a positive bias as IVs may cool off. However, Reliance may underperform the broader market due to a likely spurt in its volatility”.
“For six consecutive sessions, Nifty has been reeling under heavy selling pressure and has shed over 6.4% (395 points). Bank Nifty has displayed a similar trend and is approaching an important support zone. Reliance, on the other hand, is likely trade range bound with a negative bias”.
DAILY RECOS FROM FAIRWEALTH SECURITIES:
Sell Maruti below Rs 1,305 for target of Rs 1,290-1,280 and stop loss of above Rs 1,320
Buy HUL around Rs 304 for target of Rs 313-318 and stop loss of below Rs 299
Buy HDFC around Rs 660 for target of Rs 672-684 and stop loss of below Rs 649
Buy ICICI Bank futures above Rs 1,047 for target of Rs 1,060-1,074 and stop loss of below Rs 1,034
Buy SBI futures above Rs 2,634 for target of Rs 2,650-2,670 and stop loss of below Rs 2,619
Buy Bajaj Auto futures around Rs 1,310 for target of Rs 1,340-1,360 and stop loss of below Rs 1,294
Buy Nifty Futures above 5,842 for target of 5,876-5,900 and stop loss of below 5,808
Buy Bank Nifty Futures above 11,000 for target of 11,060-11,111 and stop loss of below 10,940
VOLATILITY PICKS FROM ICICI SECURITIES:
Buy Reliance 1,050 January Put at 24-25 and sell Reliance January 1000 Put at 7-8
Buy Bank Nifty January Futures at 10,780-10,810.
FOR TODAY: Hi everbody, Good Morning. I am a little bit late here today. In the meantime, Nifty future opens at 5805, made a high of 5820 and a low of 5792.15. Presently, it is trading around 5802-5805 level. As suggested yesterday, Nifty may pause a little. NOW WATCH 5840-45 (Spot) LEVEL. IF AND ONLY IF TRADE ABOVE THIS LEVEL, BUY NIFTY FUTURE. ON THE DOWNSIDE, WATCH 5780-90 (Spot) LEVEL. BELOW THAT, GO SHORT FOR A TARGET 5690-5700.
NOTE: RAILWAY BUDGET 2011 PICKS FOR SHORT TERM PROFITS WILL BE POSTED SOON
