ON STRONG GLOBAL CUES INDIAN MARKETS RALLIED BY MORE THAN A PERCENT, WITH HUGE BUYING WAS SEEN IN CAPITAL GOODS, BANKING, POWER, REALITY AND BANKING STOCKS AND MARKET CLOSED TO ALMOST ONE MONTH HIGH. NIFTY CLOSED AT 5124.65, UP BY 60.35AND SENSEX CLOSED AT 17065.00, UP BY 202.19. MARKET BREADTH WAS POSITIVE. BOTH MID-CAP & SMALL-CAP INDEX WAS UP BY MORE THAN 1.25%. EXCEPT FMCG ALL OTHER SECTORS ENDED IN GREEN.
GOING FORWARD INDIAN MARKET IS LIKELY TO REMAIN STRONG WITH THE VOLATILE MOVES ON THE GLOBAL CUES & MOVEMENTS. DOMESTICALLY WEEKLY FOOD & FUEL INFLATION FOR THE WEEK ENDED AUGUST 27TH, 2011 TODAY SHALL ALSO IMPACT THE MARKET SENTIMENT. IN U.S. THE PRESIDENT BARAK OBAMA'S JOB SPEECH TO CONGRESS SHALL BE THE FOCUS TONIGHT. ACCORDING TO REPORTS OBAMA PLANS TO PROPOSE DECENT JOB GROWTH BY INJECTING MORE THAN $300 BILLION INTO THE ECONOMY NEXT YEAR, MOSTLY THROUGH TAX CUTS, INFRASTRUCTURE SPENDING AND DIRECT AID TO STATE & LOCAL GOVERNMENTS. THIS COULD GIVE A SHARP RALLY IN U.S. CONSEQUENTLY INDIAN MARKET SHALL ALSO RESPOND. HENCE AS SAID EARLIER , MARKETS HERE IN INDIA MAY HEAD HIGHER. ANY CLOSE ABOVE 5200-5250 SHALL REVERSE THE MEDIUM TERM TREND TO UPWARD. WITH AN EVENT OF RBI CREDIT POLICY MEET SCHEDULED ON16TH SEPTEMBER, 2011, IN THE SHORT TERM MARKETS MAY NOT MOVE BEYOND 5250-5300. HENCE THERE COULD BE CONSOLIDATION AFTER THE SHORT COVERING RALLY, WHICH IS IN CONTINUATION FROM A WEEK, COULD BE SEEN IN NEXT WEEK BEFORE RBI MEET. NOW IF RBI PAUSES THE RATE HIKE AND CONSIDERS EASING THE SLR AND CRR, THE RALLY THEN WOULD EXTEND BEYOND 5250-5300 TO 5400-5500 ALSO, CHANGING THE SHORT TERM TREND AND SENTIMENT. ON THE OTHER HAND IF RBI HIKES RATE BY MORE THAN 25bps WITHOUT ANY CUT IN SLR & CRR, THE RESULTS COULD BE CASCADING. MARKET COULD TANK AND SENTIMENT WILL BE VERY VERY MURKY AND GLOOMY. AS OF NOW THE EXPECTATION IS BUILDING IN THAT RBI MAY PAUSE THIS TIME, WHICH WILL BE EVIDENT ON 16TH SEPTEMBER ONLY. TILL THEN 5200-5250 SHALL BE THE RANGE IN NIFTY WHERE A PROFIT BOOKING COULD BE SEEN.
AS SAID EARLIER THAT 5000(SPOT) WILL BE THE KEY LEVEL TO WATCH IN SEPTEMBER SERIES. ABOVE WHICH NIFTY WILL BE A BUYING CANDIDATE AND VICE-VERSE. THE VIEW IS STILL MAINTAINED, ABOVE 5000 NIFTY HAS SHOWN HUGE STRENGTH, EVERY DIP WAS BOUGHT INTO HOWEVER THE ONLY CAUSE OF CONCERN IS THAT VOLUMES HAVE SHRUNKEN YESTERDAY. THE EXPECTED RANGE OF NIFTY IN SEPTEMBER SERIES IS 4700-5300.
FOR TODAY: THE RANGE OF THE NIFTY(SPOT) IS 5110-5570. ABOVE 5170 NIFTY SHALL HEAD FOR 5190-5230-5270++. BELOW 5110 NIFTY MAY HIT 5070-5040-5020-5000.
STRATEGY FOR THE DAY(NIFTY SPOT):
BUY CE5100 & CE5200 ABOVE 5040 KEEPING STOP-LOSS OF 5100.
BUY PE5100 & PE5000 BELOW 5100 KEEPING STOP-LOSS OF 5040.
STOCKS TO PICK IN DELIVERY:
1. BANK OF BARODA(766.30): KEEPING THE STOP-LOSS OF 720 BUY FOR THE TARGET OF 780-800-820+++.
2. CANARA BANK(438.80): KEEPING THE STOP-LOSS OF 400 BUY FOR THE TARGET OF 460-480-500+++.
ASTROLOGICALLY: AS SAID EARLIER THURSDAY 8TH SEPTEMBER & FRIDAY 9TH SEPTEMBER SHALL SEE UP-MOVE IN THE MARKET. BUYING CALL OPTIONS COULD BE PROFITABLE. HOWEVER IT SHOULD BE NOTED THAT NIFTY IS MOVING TOWARDS THE HIGHER END OF 5200-5250 WHERE COULD BE PROBABLE TOP. FROM WHERE BUYING PUT OPTIONS FOR NEXT WEEK (12TH SEPTEMBER TO 16TH SEPTEMBER) CORRECTION COULD FETCH SOME QUICK GAINS.
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.
GOING FORWARD INDIAN MARKET IS LIKELY TO REMAIN STRONG WITH THE VOLATILE MOVES ON THE GLOBAL CUES & MOVEMENTS. DOMESTICALLY WEEKLY FOOD & FUEL INFLATION FOR THE WEEK ENDED AUGUST 27TH, 2011 TODAY SHALL ALSO IMPACT THE MARKET SENTIMENT. IN U.S. THE PRESIDENT BARAK OBAMA'S JOB SPEECH TO CONGRESS SHALL BE THE FOCUS TONIGHT. ACCORDING TO REPORTS OBAMA PLANS TO PROPOSE DECENT JOB GROWTH BY INJECTING MORE THAN $300 BILLION INTO THE ECONOMY NEXT YEAR, MOSTLY THROUGH TAX CUTS, INFRASTRUCTURE SPENDING AND DIRECT AID TO STATE & LOCAL GOVERNMENTS. THIS COULD GIVE A SHARP RALLY IN U.S. CONSEQUENTLY INDIAN MARKET SHALL ALSO RESPOND. HENCE AS SAID EARLIER , MARKETS HERE IN INDIA MAY HEAD HIGHER. ANY CLOSE ABOVE 5200-5250 SHALL REVERSE THE MEDIUM TERM TREND TO UPWARD. WITH AN EVENT OF RBI CREDIT POLICY MEET SCHEDULED ON16TH SEPTEMBER, 2011, IN THE SHORT TERM MARKETS MAY NOT MOVE BEYOND 5250-5300. HENCE THERE COULD BE CONSOLIDATION AFTER THE SHORT COVERING RALLY, WHICH IS IN CONTINUATION FROM A WEEK, COULD BE SEEN IN NEXT WEEK BEFORE RBI MEET. NOW IF RBI PAUSES THE RATE HIKE AND CONSIDERS EASING THE SLR AND CRR, THE RALLY THEN WOULD EXTEND BEYOND 5250-5300 TO 5400-5500 ALSO, CHANGING THE SHORT TERM TREND AND SENTIMENT. ON THE OTHER HAND IF RBI HIKES RATE BY MORE THAN 25bps WITHOUT ANY CUT IN SLR & CRR, THE RESULTS COULD BE CASCADING. MARKET COULD TANK AND SENTIMENT WILL BE VERY VERY MURKY AND GLOOMY. AS OF NOW THE EXPECTATION IS BUILDING IN THAT RBI MAY PAUSE THIS TIME, WHICH WILL BE EVIDENT ON 16TH SEPTEMBER ONLY. TILL THEN 5200-5250 SHALL BE THE RANGE IN NIFTY WHERE A PROFIT BOOKING COULD BE SEEN.
AS SAID EARLIER THAT 5000(SPOT) WILL BE THE KEY LEVEL TO WATCH IN SEPTEMBER SERIES. ABOVE WHICH NIFTY WILL BE A BUYING CANDIDATE AND VICE-VERSE. THE VIEW IS STILL MAINTAINED, ABOVE 5000 NIFTY HAS SHOWN HUGE STRENGTH, EVERY DIP WAS BOUGHT INTO HOWEVER THE ONLY CAUSE OF CONCERN IS THAT VOLUMES HAVE SHRUNKEN YESTERDAY. THE EXPECTED RANGE OF NIFTY IN SEPTEMBER SERIES IS 4700-5300.
FOR TODAY: THE RANGE OF THE NIFTY(SPOT) IS 5110-5570. ABOVE 5170 NIFTY SHALL HEAD FOR 5190-5230-5270++. BELOW 5110 NIFTY MAY HIT 5070-5040-5020-5000.
STRATEGY FOR THE DAY(NIFTY SPOT):
BUY CE5100 & CE5200 ABOVE 5040 KEEPING STOP-LOSS OF 5100.
BUY PE5100 & PE5000 BELOW 5100 KEEPING STOP-LOSS OF 5040.
STOCKS TO PICK IN DELIVERY:
1. BANK OF BARODA(766.30): KEEPING THE STOP-LOSS OF 720 BUY FOR THE TARGET OF 780-800-820+++.
2. CANARA BANK(438.80): KEEPING THE STOP-LOSS OF 400 BUY FOR THE TARGET OF 460-480-500+++.
ASTROLOGICALLY: AS SAID EARLIER THURSDAY 8TH SEPTEMBER & FRIDAY 9TH SEPTEMBER SHALL SEE UP-MOVE IN THE MARKET. BUYING CALL OPTIONS COULD BE PROFITABLE. HOWEVER IT SHOULD BE NOTED THAT NIFTY IS MOVING TOWARDS THE HIGHER END OF 5200-5250 WHERE COULD BE PROBABLE TOP. FROM WHERE BUYING PUT OPTIONS FOR NEXT WEEK (12TH SEPTEMBER TO 16TH SEPTEMBER) CORRECTION COULD FETCH SOME QUICK GAINS.
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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