Morning Bells (30 Sept 13)

Morning Bells (30 Sept 13)

Good Morning Friends.

Sugar and Salt can be mixed together but Aunts rejects the salt and carry away only sugar. Select right people in life and make your life sweeter.

The October series started off on a weak note with the Indian equity market further losing ground on concerns the United States government may come to a standstill unless politicians can agree to pass measures to increase borrowing and avoid a default.

Selling pressure was witnessed, specially in the banking stocks after Reserve Bank of India governor Raghuram Rajan said on 26 September, that the RBI is still worried about high inflation.

Well I don’t have much to talk about in general, right now the only concern is how Nifty will behave in coming sessions. So lets have look to market outlook section.

Currency Moves –

Rupee weakened further by 44 paisa and was trading at 62.51/dollar.

MARKET OUTLOOK –

On the derivates side, long rollovers were seen in the capital goods, metals and power stocks, while, the banking, real-estate and oil and gas stocks witnessed short rollovers. Pharmaceutical stocks, fast moving consumer goods (FMCG) and IT are seeing long side bias.

Right now Nifty is in the range of 5750-6050 and as per current data it seems difficult for Nifty to cross 6050 on the upside. If crossed then 6150 is next barrier and is achievable TG.

Technically Nifty looks weak as its closed below its 200DMA 5841. So today its necessary to close above this levels. Now next level of support comes to 5810 and if Nifty breaks this level selling pressure will intensify.

MG’s Nifty trading range –

R – 5990 - 6030 - 6145 - 6180 - 6230

S - 5841 – 5810 - 5750 – 5700

Nifty swing band is 5600-6100 and 4900-5600

DMA – 100DMA – 5814, 200DMA - 5841

Technical Trend changer supports – 5715 – 5580 – 5535 – 5250 - 5120

EVENTS –

3 Oct – Hexaware OFS

17 Oct – FOMC voting.

STOCK OUTLOOK -

(Stock that can see some good moves either side)

On the derivates side, long rollovers were seen in the capital goods, metals and power stocks, while, the banking, real-estate and oil and gas stocks witnessed short rollovers. Pharmaceutical stocks, fast moving consumer goods (FMCG) and IT are seeing long side bias

Banking -

SBI, BOB, Allahabad Bank and Andhra Bank will see selling pressure if 5810 breached.

BPCL –

BPCL and Videocon Inds ended with handsome gains after reports stated an oil discovery by their Brazil partner. 

JSPL –

Charts suggesting significant downside.

MBC PL –

Oct PL = -1000

Yes Bank 340CE @18 SL 308 in cash – stopped out at 16

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