Good Morning Friends.
Instead of repeated
errors you love yourself most, then why you hatred to someone just for a single
mistake. Strange but true!
Markets erased its winning
streak on Tuesday and ended almost near day's low and fell down instead
of strong global cues. Market witnessed some heavy selling in Realty, Metals,
Capital Goods and Power stocks, the only saviours were select FMCG, IT &
Banks. Pressure increased due to profit booking in broader indices.
DLF, M&M, ACC, Tata Steel, Reliance Infra,
Hindalco, Tata Motors were among the major losers while Hero Motocorp, Cairn,
Bharti Airtel and Sun Pharma were among the major gainer.
RIL was another reason for fall, RIL gave up
all its gain in late trade instead of expected quarterly result. Even posted
good result by India's third largest private sector lender Axis Bank on Monday (reported
22% YoY rise in its second quarter) was also unable to keep the momentum up of
both Nifty and Bank Nifty. Bank Nifty seems in downtrend and may go below
11000.
Well, today market will eye on HCL which will
announce quarterly result today. The India's fourth largest software services
exporter is expected to report 3-5% sequential growth in volumes, however
margins will be under pressure due to wage hikes.
On
world’s second largest economy China - Retail level inflation in China
increased by 1.9% last month, China’s inflation was close to the slowest pace
in two years in September.
Thursday will be a noticeable event as China’s third-quarter
gross domestic product will be released.
MARKET OUTLOOK –
Nothing much to say about market
as participant started profit booking. We are just above strong support for
Nifty which is 5630 and to watch it today, if broken then next big support
comes to 5585 and if this is broken then we will see a big selling pressure and
market can witness a big fall. On long side 5728 has strong resistance, so till
market hover in this range it’s a No Trade Zone. One can make only Intraday position
either side.
All eyes will also be on EU event on 18th
while ITC and Tata Consultancy Services will announce results on Friday.
NIFTY –
Seems
FII is now doing lot of day trading. On previous day they had made longs and y’day
they booked profit in their longs. Even they are doing some intraday trade. And
y’day they have shorted the index.
Huge
position added to 5700CE (18 lacs) & to 5800CE (11.5 Lacs) on short side 3.89
lacs position added to 5600PE and 4.63 lac to 5600PE. 5800CE have crossed OI above 1 Crore, while down side 5600PE
has highest OI of 80 Lacs, so now on broad based range seems 5600-5800 but data
sensing something different, so just watch out for breakout of any support or
resistance will only give clear indication.
India
Vix lost 2.2% and closed to 15.57 and
Nifty PCR is 0.84.
Resistance
comes to 5674 - 5709 – 5728 and Supports comes to 5630 – 5615 - 5585.
Trend remain bearish till 5728 is not
taken out, buying momentum is likely to accelerate above 5728 levels, and then
Nifty may retest 5800.
Opening seems slightly positive as
global market closed with higher gains. Make position only on intraday basis.
STOCK OUTLOOK -
(Stock outlook needs to watch stock movement
carefully and then one can bet after having a look, I tried to put related info
which can decide stock move either side.)
My top pick for next 3 months are – Cement, Infra
& Banks – yes not blindly to any stock, in select good stocks only.
Cement
Sector –
Brokerage
CLSA has upgraded the cement sector to overweight.
Realty
Sector -
Comes under rate sensitive field and will see some
pressure. Select stock can perform better with support of Nifty.
Steel Sector –
Steel
seems under pressure ahead of GDP no.s from China and global pressure for the
sector.
Tata Steel – Has broken
out its support level and can test 400 mark in coming sessions.
Power Sector –Slow but steady gain is seen. Keep eye for Mid to Long term bet.
Banks
Sector –
Most of expert expectating that the RBI may
cut the CRR by 25bps but will this hope really help to Oct. series is the
million dollar question.
IT Sector –
IT
rebound y’day and today all eye will be on HCL
Auto Sector –
TM - Shares
of Tata Motors declined after the company reported on Monday that Jaguar Land
Rover (JLR) sales had dropped 4.3% to 26,461 units last month which missed
analyst estimates of 30,000 units.
OPEN CALLS –
(Be
with strict SL and don’t hesitate to book profit if Nifty shows strength)
DB Realty -
@79 for TG 110 SL 74 (Hitting upper circuit everyday)
Deccan Chronicle Holdings &
DCB - suggested to exit y’day, keep eye on both stock, once Nifty will
settle from its under pressure behaviour both will shine. If you are still
holding then no prob, keep it for Mid term bet.
DhanBank -
@55 for TG 70 SL 45
Jindal Photo -
@145 for TG 160+ SL 130
Its No Trading Zone, watchout for breakout of
either side else play only Intraday and close positions before market close.
Have
a Profitable day – MG
Disclaimer – I have shared my view
as per my limited knowledge; please use your own skills to make a wise decision
before execution of trade.
