MARKET FELL SHARPER AFTER RBI SURPRISED EVERY ONE BY HIKING REPO-RATE BY 50bps AGAINST THE EXPECTATION OF 25bps, IN CONTINUATION OF ITS ANTI-INFLATIONARY STANCE. NIFTY CLOSED AT 5574.85, DOWN 105.45 POINTS AND SENSEX CLOSED AT 18518.22 DOWN 353.07 POINTS. MARKET BREADTH WAS NEGATIVE AND ALMOST ALL SECTORS WERE IN RED.
IN FACT MARKETS HAVE SHOWN GOOD STRENGTH AFTER THE SURPRISE HIKE OF REPO-RATE BY RBI. IT HAS GIVEN UP THE GAINS OF MONDAY, HENCE IT HAS SHOWN THAT EVEN IF THE INDICES AND RATE SENSITIVE STOCKS HAVE BEEN BEATEN DOWN DUE TO WEAK GROWTH PROSPECTS, HOWEVER THERE REMAINS THE RANGE BOUND OUTLOOK FOR THE MARKET. STOCK SPECIFIC MOVEMENTS WILL CONTINUE AND SELECT STOCKS(OUT OF RATE SENSITIVES) WILL OUTPERFORM. GLOBALLY DEVELOPMENT OVER RAISING THE U.S. BORROWING LIMIT WOULD GIVE FURTHER DIRECTION TO MARKET. HENCE TILL 2ND AUGUST MARKETS SHALL BE RANGE BOUND AND THE RANGE SHALL BE 5470 ON THE DOWN SIDE AND 5740 ON THE HIGHER SIDE.
NOTE DOWN THIS RANGE 5470-5740 IS LIKE A "LAKSHMAN REKHA". BREAK ON EITHER SIDE AT ANY POINT OF TIME SHALL GIVE AT LEAST 100-200 POINTS MOVE.
RANGE FOR THE NIFTY TODAY SHALL BE 5540-5630, WHERE RESISTANCE FOR THE NIFTY SHALL BE AT 5655 & 5695 HOWEVER THE SUPPORT WILL BE 5500 AND 5470.
BEST IS TO KEEP AWAY FROM NIFTY OPTIONS AND INDICES TO TRADE TILL SETTLEMENT ON 28TH. HENCE NO CALLS NO PUTS.
FOLLOWING STOCKS LOOKS GOOD FOR TRADING S WELL AS DELIVERY:
1. GITANJALI(311.45): BUY FOR THE SHORT TERM TARGET OF 330++++
2. TALWALKARS(259.20): BUY FOR THE TARGETS OF 280+++
3. RUCHI SOYA(102.15): BUY FOR THE TARGETS OF 115+++
4. TCS CE1150(AUGUST): BUY AROUND 28-30 FOR THE TARGET OF 65-70Z+++
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
IN FACT MARKETS HAVE SHOWN GOOD STRENGTH AFTER THE SURPRISE HIKE OF REPO-RATE BY RBI. IT HAS GIVEN UP THE GAINS OF MONDAY, HENCE IT HAS SHOWN THAT EVEN IF THE INDICES AND RATE SENSITIVE STOCKS HAVE BEEN BEATEN DOWN DUE TO WEAK GROWTH PROSPECTS, HOWEVER THERE REMAINS THE RANGE BOUND OUTLOOK FOR THE MARKET. STOCK SPECIFIC MOVEMENTS WILL CONTINUE AND SELECT STOCKS(OUT OF RATE SENSITIVES) WILL OUTPERFORM. GLOBALLY DEVELOPMENT OVER RAISING THE U.S. BORROWING LIMIT WOULD GIVE FURTHER DIRECTION TO MARKET. HENCE TILL 2ND AUGUST MARKETS SHALL BE RANGE BOUND AND THE RANGE SHALL BE 5470 ON THE DOWN SIDE AND 5740 ON THE HIGHER SIDE.
NOTE DOWN THIS RANGE 5470-5740 IS LIKE A "LAKSHMAN REKHA". BREAK ON EITHER SIDE AT ANY POINT OF TIME SHALL GIVE AT LEAST 100-200 POINTS MOVE.
RANGE FOR THE NIFTY TODAY SHALL BE 5540-5630, WHERE RESISTANCE FOR THE NIFTY SHALL BE AT 5655 & 5695 HOWEVER THE SUPPORT WILL BE 5500 AND 5470.
BEST IS TO KEEP AWAY FROM NIFTY OPTIONS AND INDICES TO TRADE TILL SETTLEMENT ON 28TH. HENCE NO CALLS NO PUTS.
FOLLOWING STOCKS LOOKS GOOD FOR TRADING S WELL AS DELIVERY:
1. GITANJALI(311.45): BUY FOR THE SHORT TERM TARGET OF 330++++
2. TALWALKARS(259.20): BUY FOR THE TARGETS OF 280+++
3. RUCHI SOYA(102.15): BUY FOR THE TARGETS OF 115+++
4. TCS CE1150(AUGUST): BUY AROUND 28-30 FOR THE TARGET OF 65-70Z+++
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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