Daily Fundamental Snippets

Market Overview

The benchmark 30-share BSE index closed up 1.59 percent, or 260.42 points, at 16,676.75, after having risen as much as 1.8 percent during trade, with 24 of its components gaining. The BSE Sensex shows one the best close in nearly two weeks on Tuesday, bolstered by a rally in global equities after U.S. consumer spending data eased concerns about the health of the world's largest economy. In the broader market, gainers were ahead of losers in the ratio of 2.6:1 on strong volume of 652 million shares. The gains were underpinned by data that showed India's economy grew at 7.7 percent in the June quarter, its weakest pace in six quarters but better than gloomier predictions.

Market Outlook

Despite a two-day rebound, the outlook for BSE Sensex remained hazy, with economists forecasting another rate increase on Sept. 16 when the central bank reviews policy.

The overall market mood will remain cautious in the near term," there is still lingering worries about the euro zone debt crisis. August was one of the worst months for Global Equities especially for European market which fallen most since Lehman brothers crisis.

While India Market fell 8.4 percent in August, its second straight monthly drop and the biggest percentage decline since January as rising rates and global economic uncertainty triggered a flight from risky assets.

Global Market are in red along with SGX nifty shows flat to negative outlook for the day.

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Derivatives Strategist 02 SEPTEMBER 2011

Market Outlook

 

After a gap up opening, Nifty future witnessed sustained buying interest and finally closed above 5000 levels. On option front, maximum Put OI is at 4700 followed by 4800 strike while maximum Call OI is at 5000 strike and fresh writing seen at 5100 and 5200 strikes. If Nifty future sustains above 5000 levels then it may go up to 5050-5100 levels. On downside if it fails to hold 4950 levels, then selling pressure may get intensified in the market towards 4900-4800 levels.

Derivatives Calls : Buy Crompgreav and Divislabs

 

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First Morning Technical Call

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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