Daily Market Tips

Wednesday, 18 November

• The market opens on a sluggish and soft note. Earlier, the US markets ended off the day's low while Asian markets have opened marginally in the green and are trading quiet. Sensex is trading at 16994, down 56 points from its previous close, and Nifty is at 5045, down 16 points. CNX Midcap index is up 0.2% and BSE Smallcap index is up 0.3%. The market breadth is positive with advances at 454 against declines of 276 on the NSE.
• Sell DLF at Rs 383 with target of Rs 361 and stop loss of Rs 389. The stock last traded at Rs 377.80, down 2% on the BSE. 
• Buy Wockhardt with intra-day target of Rs 190 and stop loss of Rs 181. The stock last traded at Rs 183.15, down 3.2% on the BSE. 
• Buy XL Tele with intra-day target of Rs 44 and stop loss of Rs 39. The stock last traded at Rs 39.35, up 4.9% on the BSE. 
• Buy HUL at Rs 276 with intra-day target of Rs 283 and stop loss of Rs 272. The stock last traded at Rs 276.35, up 0.7% on the BSE.  
• The trend in the market is upward and my next target for the Nifty is 5125 with stop loss at 4890.  
• The Nifty could be heading towards 5200 and there is good short-term support for it between 5000-5020. Buy Infosys with target of Rs 2500 plus and stop loss of Rs 2350.The stock last traded at Rs 2396.75, up 2% on the BSE.  
• The trend in the market is positive and traders should use all intra-day dips and lower levels to buy. Buy at around 5000 and booking profits at 5075-5100 levels. 

USD/INR DAILY

A pullback was witnessed in USDINR as dollar strengthened against other currencies. Dollar opened the day at 46.04 and made a high of 46.38 eventually closing at 46.32 levels. Nifty which had fallen by 50 points from open recovered and closed the day 4 points positive at 5062 points. The surprise however was total Net TIC inflows of U.S which indicates the total amount invested in American financial assets from people outside
America. The demand for long term U.S. financial assets strengthened in September as Japan, U.K and China added to holdings of Treasury debt. Net buying of long term equities, notes and bonds totaled $40.7 billion for September as compared to net buying of $34.2 billion In August. While in short term securities, foreigners brought a net $133.5 billion for the month. This indicated confidence of global investors in the U.S. This was
reflected in prices of Dollar Index which rose from lows and was trading at 75.28 levels from 74.81 levels. However contrary to previous correlations, Dow Jones and other asset classes rose with DJIA closing 30 points positive at 10437 points. We expect this rise in Dollar index will not have much effect on USDINR pair.46.55 will remain a crucial resistance for the pair while 46.15 will act as a key support. In medium term we expect pair to touch Rs.45/USD.

Yesterday Market Summary

Last trading day: Tuesday, 17 November

 The market opened gap up today following positive cues from US markets, but turned choppy in the day due to negative Asian cues and then closed flat. Sensex shut shop at 17050, up 18 points and Nifty at 5062, up 4 points from the previous close. CNX Midcap index was down 0.15% and BSE Smallcap index was up 0.22%. The market breadth was negative with advances at 596 against declines of 658 on the NSE. Top Nifty gainers were Reliance Capital, TCS and Hero Hondawhile losers included ONGC, DLF and Idea Cellular.

There is upside pressure for the market and one can trade with a negative bias tomorrow. Nifty has strong support at 5000 and stiff resistance at 5166.