Market Outlook:
Nifty View- S&P CNX Nifty opened very positive with Gap-up but selling pressure closed both the Gap-up and gap-down formed. Nifty is facing stiff resistance of 100DMA 5217 and below 5130 selling pressure could be very high in markets with 5064 & 4984 being next support levels on the downside. Heavy selling was witnessed in many mid & small cap stocks this could soon pressure frontline stock with weakness in SBIN-TATASTEEL-TATAPOWER-M&M-SAIL-ICICIBANK-LT-MARUTI seen which can likely break 52week low and 8-10Downside can be possible in these stocks. While on positive side CAIRN-ACC-HINDUINLEVER-AMBUJACEM-SUNPHARMA-DRREDDY looks good for smart gains. India makes case for ratings upgrade with Moody's but many await the outcome of rating. Result season- 2857corporates results sales growth 20.9% while net profit is down 34.7% compared with YOY basis, results have disappointed in big way.
Sensex- Sensex Gapped-up failed to sustain the gap and in process closed gapped-down (17331-17279) and closed 12trading days lowest levels indicating weakness. Sensex up-move from low of 15745 to high of 17908 38.2% retracement comes around 17081 where now support is seen below which 50%-16826 and 61.8%-16571 would be levels to be watched going forward.
Technical Calls:
KPIT-Rs.169, Stock has given price-volume Break-out and has closed above 100DMA and 200DMA around Rs.163. Stock has made higher low and gained 7% on a weak day which shows the strength in the stock.
ACC-Rs.1217, Stock after steep rise from Rs.917 low made in June2011 has made high of Rs.1237 on 28 October2011 has not made a mini triangle and if 1175 on lower side is held on closing basis higher levels of 1265-1290 would become possible in near term.
Technical View: BFUTILITE-Rs,451,Stock has retraced 75% of the gain from Rs.414 to 488 which took 22trading days while 75% retracement took less than 3days. Stock closed below 20DMA Rs.476 and 30months low of Rs.402 can also be breached if weakness continues in the stock.
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