Last week Indices in Indian Capital Market ended marginally lower as the sentiments were subdued due to lack of any major announcements from Government also F&O expiry also had an impact on the makrket performance for the week. Earnings from the corporate world also failed to give any clear direction. Sensex ended the week at 18625.34 & Nifty shut shop at 5664.30.
As said in previous postings Indian stock market remained in a range and same is likely to continue till the winter session of the parliament begins from Nov 22-Dec 12, 2012. The broad range of Nifty will be 5600-5850 with stock specific volatility. Almost 75% of the results declared of 27 companies in Nifty were better than expected results which signal in the favor of stock market. Apart from this RBI's monetary policy, monthly dispatch figure from cement and auto companies and other important data like inflation and export-import data should be closely watched.
Its important to mark here that against the previous expectation of rate cut, it seems that keeping in view the high inflation, RBI may be conservative to follow the liberal view and MAY NOT cut the repo or reverse repo rate this time. It can only cut in CRR looking into the liquidity situation due to festive season.
In essence the market will seek to be in a range with upward bias and stock specific moves. Stocks like ITC, CERA SANITARY, GLAXO CONSUMER, L&T, HUL, could be bought on any dip around 3%-5%...Hence keep watching them as they could give good rise in short to medium term.
Technically the daily chart of Nifty is showing that it has been moving in the range of 5600-5750 in the last three weeks. Analysts expect that this range could continue for another few days. However if Nifty is able to maintain above 5750, an upward rally may carry it to 5900 in the short term. On the other side breach of 5600 would indicate end of the current rally and in that case Nifty might test 5450. Hence short term long positions should be kept with a strict stop-loss of 5600......
FOR THIS WEEK: No trading range for the Nifty is 5600-5750.
Go long in Nifty above 5750, keeping stop-loss of 5600 for the target of 5790-5850-5900
Go short in Nifty below 5600, keeping stop-loss of 5750 for the target of 5530-5450.
Note: Options of suitable strike prices could be selected to play on the movement on either side of the range 5600-5750, keeping the stop-loss of lower or upper limit as the case may be.
STOCKS WHICH COULD GIVE GOOD RISE IN DELIVERY HOLDING FOR 45-60 DAYS ARE:
1. ITC(285.95):Buy for the target of 300-320-350+++++. Add on dips(if any).
2. STERLITE(100.85):Buy for the target of 110-120-130+++++
3. LIC HOUSING FIN(251.50):Buy for the target of 265-280-300+++++ Add on dips(if any).
4. CANFIN HOMES(127.15):Buy for the target of 140-160-180-200+++++
5. HONEYWELL AUTO(2654.25):Buy for the target of 2740-2820-2960-3000+++++
6. L&T(1705.85):Buy for the target of 1750-1780-1820-1850-1900+++++ Add on dips(if any).
7. VISAKA IND(132.20):Buy for the target of 145-150-160+++++
8. GIC HOUSING FIN(122.25):Buy for the target of 140-160+++++
9. HEXAWARE(113.60):Buy for the target of 125-130+++++
10. JAY BHARAT MARUTI(61.10):Buy for the target of 68-72-78+++++
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.
As said in previous postings Indian stock market remained in a range and same is likely to continue till the winter session of the parliament begins from Nov 22-Dec 12, 2012. The broad range of Nifty will be 5600-5850 with stock specific volatility. Almost 75% of the results declared of 27 companies in Nifty were better than expected results which signal in the favor of stock market. Apart from this RBI's monetary policy, monthly dispatch figure from cement and auto companies and other important data like inflation and export-import data should be closely watched.
Its important to mark here that against the previous expectation of rate cut, it seems that keeping in view the high inflation, RBI may be conservative to follow the liberal view and MAY NOT cut the repo or reverse repo rate this time. It can only cut in CRR looking into the liquidity situation due to festive season.
In essence the market will seek to be in a range with upward bias and stock specific moves. Stocks like ITC, CERA SANITARY, GLAXO CONSUMER, L&T, HUL, could be bought on any dip around 3%-5%...Hence keep watching them as they could give good rise in short to medium term.
Technically the daily chart of Nifty is showing that it has been moving in the range of 5600-5750 in the last three weeks. Analysts expect that this range could continue for another few days. However if Nifty is able to maintain above 5750, an upward rally may carry it to 5900 in the short term. On the other side breach of 5600 would indicate end of the current rally and in that case Nifty might test 5450. Hence short term long positions should be kept with a strict stop-loss of 5600......
FOR THIS WEEK: No trading range for the Nifty is 5600-5750.
Go long in Nifty above 5750, keeping stop-loss of 5600 for the target of 5790-5850-5900
Go short in Nifty below 5600, keeping stop-loss of 5750 for the target of 5530-5450.
Note: Options of suitable strike prices could be selected to play on the movement on either side of the range 5600-5750, keeping the stop-loss of lower or upper limit as the case may be.
STOCKS WHICH COULD GIVE GOOD RISE IN DELIVERY HOLDING FOR 45-60 DAYS ARE:
1. ITC(285.95):Buy for the target of 300-320-350+++++. Add on dips(if any).
2. STERLITE(100.85):Buy for the target of 110-120-130+++++
3. LIC HOUSING FIN(251.50):Buy for the target of 265-280-300+++++ Add on dips(if any).
4. CANFIN HOMES(127.15):Buy for the target of 140-160-180-200+++++
5. HONEYWELL AUTO(2654.25):Buy for the target of 2740-2820-2960-3000+++++
6. L&T(1705.85):Buy for the target of 1750-1780-1820-1850-1900+++++ Add on dips(if any).
7. VISAKA IND(132.20):Buy for the target of 145-150-160+++++
8. GIC HOUSING FIN(122.25):Buy for the target of 140-160+++++
9. HEXAWARE(113.60):Buy for the target of 125-130+++++
10. JAY BHARAT MARUTI(61.10):Buy for the target of 68-72-78+++++
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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