Market Outlook:
§ S&P CNX Nifty witnessed pullback for the second consecutive trading day at faster rate which generally happens in the Bear Phase of the market and finally closed above 5000 psychological levels. Nifty has crossed the 23% retracement level and also closed the gap created in last week. Now for the day if nifty sustains above 5050 levels which is immediate resistance level then recovery towards 5100 levels could be seen which is also 38% retracement of the latest downfall from 5700 to 4720 levels. Whereas if it fails to hold 5000 levels then profit booking may be seen being the last day of week and participants would like to book their profits. Below 4965 levels selling pressure would be high towards 4900 levels hence one should have cautious approach keeping these levels in mind while trading. Nifty lost around 480 points in the calendar month of Augusts. Maruti and Tata Motors have seen fall in sales figure in August month may put some pressure in the counters.
§ Sensex- Index closed near 16675 levels and now sustaining above 16800 levels which is the immediate resistance level may rally towards 17000 which is 38% retracement of the current fall. Whereas on downside if it fails to hold 16600 levels then profit booking may be seen after two days of recovery.
§ CNX Banking index has not closed the gap formed in the last week around 9565 levels hence one should have cautious approach while playing pullbacks.
Technical Calls:
GSFC-Cmp Rs. 391
Stock has closed above the falling trend line with higher volumes and looks strong on charts. It is trading above all short term and long term moving averages indicating strength in the counter. One can initiate long with stop below 384 levels and for the target of 402 levels.
GRASIM: CMP Rs.2185
Stock after a long consolidation has given breakout above 2175 levels with good volumes. Counter is trading above short term moving averages and ready for further rally towards 100D SMA 2240 and 200D SMA 2290 levels. One can initiate long positions with stop below 2140 and for the target of 2260 or above levels.
Technical View: Gujarat Gas LTP: 455.70> The stock is trading near life time high territory and if it sustains 455-460 levels then we may see 5-6% upside from current levels. Stock looks very attractive with trading above all major moving averages. Stock has also made Pole & Flag formation on daily charts and breakout comes above 460 levels.
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