Market Outlook:
S&P CNX Nifty taken good support around 4970 and moved higher till 5091, for the day range would be 5040-5120 and if the range breaks on higher side 5169 which is double top formation or 5220 can also become target. Nifty to show weakness should trade below 5030 for intraday and for Negative trend 4965 (previous day low) below close only. RBI credit policy will give better sense of direction as political condition is becoming fluid. The rally in market in last few days is more speculative as FIIs and MF participation is very low, and now reports suggest ONGC FPO has also been deferred. Petrol prices are hiked due to strong dollar which can be positive for PSU Oil companies and negative for AUTO companies which has paid flat tax, added EGOM meet today on LPG Subsidy ahead of ONGC FPO.
§ Sensex- - holding 16540 is important to target higher with 17200 which is double top formation and 17358 above previous Gap-down would start getting filled. The advance tax for the September quarter paid by top 100 Mumbai-based companies has recorded a moderate growth of 5% at about Rs 17,224 crore (Rs 16,366 crore).
Technical Calls:
REC-177, has made triple bottom around Rs.162-163 levels each time after hitting lows the stock rebounded and failed around Rs.188 & 182 this time if the stock holds Rs.170 on lower side chances of stock crossing Rs.190 and targeting Rs.210 is very high. Stock has closed above 20DMA Rs.173 while 100DMA Rs.201 & 200DMA Rs.233 could also become targets on higher side.
ELECON-73, stock has been moving in a sideways channel and now the stock is breaking above the channel, where almost all major averages have converged 200DMA Rs.72, 100DMA Rs.71.8 and 20DMA Rs.70.6. Stock comfortably trading above Rs.71 then Rs.82 can become target in weeks to come.
Technical View: Make/Break
PSU OIL Companies- BPCL-HPCL-IOC-ONGC-GAIL-OIL-Petrol prices are hiked due to weak rupee, while Indian Brent hovering near $110 with no respite had made crude costlier by 7% in one month due to weak rupee. Today EGOM meet to reduce subsidy on LPG and if any positive move happens that would benefit Oil marketing and Subsidy sharing PSU oil companies ahead of ONGC FPO. Normally markets have corrected after large IPO/FPO so investor should take calculated risk as Government plays its cards well to attract investment after which investors are left in lurch.
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