Morning Bells (25 Oct 13)

Good Morning Friends.

In memory of Manna Da – Jinhone Sajaye Yahan Mele… Sukh Dukh Sang Sagn Jhele… Wahi Chunkar Khamoshi, Yu Chale Jaye Akele Kahan.

The BSE Sensex surged past the 21,000 mark for the first time in three year on Thursday ahead of the Reserve Bank policy meet scheduled to be held on October 29. However, the gains were short-lived as traders preferred to book some profits after higher levels.

Sensex hit the 21k milestone on the back of strong inflows from foreign investors throughout the month. Foreign funds have bought US$1.7bn in Indian equities so far this month, taking their total purchases for the year to US$15.35bn.

The decline was led by selling pressure in the IT, Telecom, Power and the Realty stocks.

MARKET OUTLOOK –

We discussed it throughout the week, Nifty under consolidation mode and profit booking will come once Nifty will move above 6230 or would be near 6300, y’day Nifty seen heavy profit booking and lost all gains and finally closed in RED. Here again I would like to remind you 6020 & 5980 will find good support in this series (in case of a fall)

Well we have only 5 sessions left and it would be highly volatile and momentum can remain on downside because now market is expecting weak Q2 in these 5 session, only hope (gamble) in banking segment can limited downside while most of players expecting another rate hike. It may be, but I guess in the current situation RBI can give a pass for next meet because still Govt. has to take decision on various price hike and taxation.

Well, about momentum, weak Q2 can push market down a bit, I am hoping it to flirt with 6100 level or in any immediate worst situation around 6000 level (6020-5980) where Nifty can settle but most probably it would be cooled off or bounce from 6100. Nov. series seems good as longs build up seen, so these downside can be utilize as buying opportunity with strict SL 5980.

Again I would suggest stay away from banking segment specially from PSU, a good correction in banking segment is on card which can take place any moment around/after RBI policy.

MG’s Nifty trading range –

R – 6240 – 6290 - 6350

S – 6160 - 6120 – 6070- 6020 - 5980

ECONOMIC EVENTS / RESULT CALENDAR –

25 Oct – Result – Adani Ports, Adani Power, Gail, ICICI, IDBI, IOB, ITC

26 Oct – Result – HUL, JSW Energy,

28 Oct – Result – Dabur, JSW, Maruti, VIP

29 Oct – Result – JSW Steel, Sriram Transport, Tata Comm, Welspun Corp

OI Activity –

STOCK OUTLOOK -

(Stock that can see some good moves either side)

MBC PL –

Oct PL = -2000 + 600 (Nifty PE gain) = -1600

Open Call –

Ashokley 17.5CE @0.7 SL Hold/0.45 TG- 18.5 in Cash

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