Daily Fundamental Snippets

Market Overview

www.nangakaro.com

The market, snapped a three-day rally as world equities fell, with global-growth worries, European sovereign-debt concerns and a US mortgage lawsuit against 17 banks depressing investors' appetite for stocks.

Sensex closed down 108 points or at 16713.33 and nifty closed down 22.80 points or at 5017.20.

 

The market breadth, indicating the overall health of the market, turned positive from negative in late trade. BSE Small-Cap and Mid-Cap indices were in green.

Market Outlook

 

Today global markets are negative and we may see a dull opening on our marets as well.

 

The pain continues in the sectors like IT and banking stocks but fresh buying is seen in infra stocks and realty.

 

The markets are still in doldrums after India's services sector grew at its slowest pace in more than two years in August 2011, throttled by feeble expansion in new business as a faltering global economy and tight domestic monetary conditions weighed, a survey by Moody's showed.

www.nangakaro.com

Though Moody's Investors Services affirmed its Baa3 rating for India's foreign currency government debt and its Ba1 rating for local currency debt in an annual credit analysis released on Monday, 5 September 2011. The ratings firm assigned a positive outlook to India's rupee-denominated bonds, saying it will consider a unified Baa3 rating for all bonds if India improves its fiscal position and its commitment to strengthening the domestic market. The outlook for foreign-currency debt is stable.

 www.nangakaro.com

We still remian cautious on markets.

Please Visit our social awareness website
www.nangakaro.com

Errata - First Morning Technical Call

Market Outlook:

S&P CNX Nifty has closed negative after 3days of rally making lower high and lower low and now we should see if that pattern continue. Nifty high 5030 & low 4964 so if nifty fails to cross 5035 and falls below 4960 then it confirms end of rally and start of downtrend and below 4920 correction in days to come would be faster. Nifty 200WMA 4823 is very crucial support and if we break and close below that Indian market could see fastest correction in shortest time period as in last 9months correction has been slow to erode wealth. Market to show any major strength should cross the 5150 levels on closing basis for 2-3days for short term rally. IT stock seeing selling pressure due to multiple factor as PMI service data, 49% drop in Indian IT hiring and U.S and Euro trouble could make INFY, WIPRO, TCS and HCL-TECH correct more.

 

 www.nangakaro.com

§  Sensex- has failed to cross 17k levels and now below 16440 which is 4days low would confirm bear rally has ended, Bear market rallies are fast, swift and takes everyone by surprise before they fizzle out timing is a big problem in such cases but confirmation would come once it fails to hold certain important support levels.

  www.nangakaro.com

Technical Calls:

 GSFC-Cmp Rs.404 has closed @ all time highest level, now the stock looks very good to cross all time high Rs.412.9. Stock is making V-shape pattern and any move above Rs.413 on sustainable basis the stock can give 10-15% return in next few months. On long term basis we have a target of Rs.590 which becomes a possibility if we close above Rs.415 in days to come.

 

 

IRB-159, Stock has started to make higher low and now higher high could be above Rs.170 levels. Stock has strongly closed above 20DMA Rs.154 now 100DMA Rs.169 & 200DMA Rs.187 can be possible levels to watch for the upside.

 

        www.nangakaro.com

  Technical View: :  BHEL- Break-down

BHEL-1711 has formed a negative triangle pattern which is very negative and stock looks very weak on charts trading below all major averages. Stock has strong support around Rs.1660 breaking which Rs.1570 which becomes 29months low would be a support; stock is falling in a falling channel where support comes to Rs.1550 around levels.

Please Visit out Social Awareness website
 www.nangakaro.com

Derivatives Strategist 06 SEPTEMBER 2011

Market Outlook

 

Domestic market opened negative as taking cues from weak Global indices. Nifty future shown selling pressure at every bounce but strong support was seen at around 4950 area. On option front, maximum Put OI is at 4700 followed by 4800 strike while maximum Call OI is now shifted from 5000 to 5200 and 5300 strike. If Nifty future sustains above 5000 levels then it may move up towards 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 Lupin Labs and Sell BHEL

Please Visit Our Social Awareness website

www.nangakaro.com

First Morning Technical Call

Market Outlook:

S&P CNX Nifty has closed negative after 3days of rally making lower high and lower low and now we should see if that pattern continue. Nifty high 5030 & low 4964 so if nifty fails to cross 5035 and falls below 4960 then it confirms end of rally and start of downtrend and below 4920 correction in days to come would be faster. Nifty 200WMA 4823 is very crucial support and if we break and close below that Indian market could see fastest correction in shortest time period as in last 9months correction has been slow to erode wealth. Market to show any major strength should cross the 5150 levels on closing basis for 2-3days for short term rally. IT stock seeing selling pressure due to multiple factor as PMI service data, 49% drop in Indian IT hiring and U.S and Euro trouble could make INFY, WIPRO, TCS and HCL-TECH correct more.

 

 

§  Sensex- has failed to cross 17k levels and now below 16440 which is 4days low would confirm bear rally has ended, Bear market rallies are fast, swift and takes everyone by surprise before they fizzle out timing is a big problem in such cases but confirmation would come once it fails to hold certain important support levels.

 

Technical Calls:

 GSFC-Cmp Rs.404 has closed @ all time highest level, now the stock looks very good to cross all time high Rs.412.9. Stock is making V-shape pattern and any move above Rs.413 on sustainable basis the stock can give 10-15% return in next few months. On long term basis we have a target of Rs.590 which becomes a possibility if we close above Rs.415 in days to come.

 

 

IRB-159, Stock has started to make higher low and now higher high could be above Rs.170 levels. Stock has strongly closed above 20DMA Rs.154 now 100DMA Rs.169 & 200DMA Rs.187 can be possible levels to watch for the upside.

 

 

  Technical View: :  BHEL- Break-down

BHEL-1711 has formed a negative triangle pattern which is very negative and stock looks very weak on charts trading below all major averages. Stock has strong support around Rs.1660 breaking which Rs.1570 which becomes 29months low would be a support; stock is falling in a falling channel where support comes to Rs.1550 around levels.