Daily Fundamental Snippets - 22/09/2011

OUTLOOK

 

Today all global markets are in red and following them we may see our markets also opening in red.

 

After the Fed meet which could not boost up the investor sentiments US market started to show selling pressure across the board. The U.S. House of Representatives unexpectedly defeated a bill that would fund the federal government past September 30 on Wednesday as dozens of Republicans broke with their party to push for deeper spending cuts.

 

On domestic front tax man is worried as 1 in every 5 top 100 firms pay lower advance tax levy in Q2 which shows that Q2 results expecttaions are also not very encouraging.

 

There is no positive news from any of the economy which may support the markets now and no trigger in coming days.There needs to be clarity on many issue globally and on the domestic front. The only next event is the earnings season which will start from next month. 

 

We continue to remain cautious on markets.

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Derivatives Strategist 22 September 2011

Market Outlook

 

After a gap down opening, Nifty future remained in a narrow range of 30-40 points and closed below 5150 levels. On option front, maximum Call OI is at 5300 followed by 5200 strike while maximum Put OI is now shifted to 5000 strike. If Nifty future sustains above 5175 levels then it may move up towards 5220-5250 levels. On downside if it fails to hold 5100 levels, then selling pressure may get intensified in the market towards 5000 levels.

Derivatives Calls : Sell LT and buy Biocon

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First Morning Technical Call_22092011

Market Outlook:

S&P CNX Nifty yesterday could not able to sustain the higher levels @5170 which is the neckline of Inverse Head & Shoulder formed on daily charts. This juncture is critical area for the next directional move if Nifty sustains or gives closing above these levels then only upside movement may be seen whereas if it fails to hold 5120 levels then further selling may get intensified in the market towards 5060-5020 levels.After the Fed meet which could not boost up the investor sentiments US market started to show selling pressure across the board. Advance Tax numbers of the top 100 companies are also disappointing this Quarter which is almost halved to 9.9% as compare to 19% in April-June. Capital Goods stocks are already under pressure and now Auto stock shave started to show weakness.

Sensex yesterday witnessed choppy session ahead of Fed meet announcements with trading in range of 1700-17190.Sensex could not able to cross the neck line of the Inverse Head & shoulder formed on daily charts and closed below 17200 levels.Now it has next support @16709 which is the low made on 9th Sept. If Sensex fill the Gap(16889-16865) then selling may get intensified towards the next support levels.

Technical Calls:

SINTEX-151, Stock has made irregular bottom making higher low, now higher high should lead to levels above Rs.163 and stock looks very good to target Rs.174 on higher side if Rs.144 on closing basis is held. Stock has been in trading range this time if Rs.175 above close is seen then 200-215 also could become possible target. Good stock for traders as it moves very good in a range.

GICHOUSING-89, stock has made Adam & eve bottom which indicates very good bottom formation has been made in the stock. ADAM & EVE bottom is a V-shape recovery followed by U-shape recovery after making almost a double bottom. Stock can give 8-10% returns in very short term and medium term Rs.102-110 can also become target.


Technical View:

OPTOCIRCUIT: The stock is looking weak with forming Lower Top Lower Bottom formation on daily charts. Counter is seeing selling pressure with volume activity indicating weakness.The stock trading below all moving averages i.e. 200DMA @279 and 100DMA@271 levels. It has next major support around 225 levels if it fails to hold these levels then further selling may be seen towards 210 levels in coming weeks.

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