Nifty 8629/Sensex 27985/Bank Nifty 19330
Sensex ends below 28k, Nifty dips for 2nd day; Midcap slips too
MR URjit Patel – New RBI Governor
Market is in selling pressure on Monday as well as nifty struggled to hold above 8650 and the 50-share NSE Nifty fell 37.75 points to 8629.15. The 30-share BSE Sensex followed nifty and was down 91.46 points at 27985.5.
About 1462 shares declined against 1253 advancing shares on the exchange.
Experts believe that the Nifty futures & options contracts for the August month will expire on Thursday, so the volatility is warranted.
New Governor of RBI Appointed- MR Urjit Patel
• Finally the speculation ended last Saturday after the government announced Urjit Patel as new governor of the Reserve Bank of India. Current governor Raghuram Rajan's three-year term will end on September 4.
• Market likely to give ‘thumbs up’ to Urjit Patel as new RBI governor.
• The market believes that the prospect for a rate cut in the near term is unlikely as the priority of the new RBI governor will be to contain inflation.
Our clients are holding in our recommendations in this sideways market and gaining. We will be booking profit very soon as our targets get achieved. Just giving you a glimpse, our investment call of Atul Auto gained more than 8%. We are holding long from 400 levels, just made a high of 432 today.
We are holding long in IRB infra and other stocks too.
Now what to expect next??
Nifty and Bank Nifty future levels
Nifty has immediate support at 8600, a break and sustain below this level will take to 8560---8520 and then to 8450 mark. Further down side panic will seen only below 8450 else it could test 8680---8760 again.
Bank nifty has nearest support at 19200 and a break below this level can take Bank nifty futures to 19000---18900 else it could test its resistance level of 19500 again. A move and sustain is required above this level for next bullish rally.
Today's Top Pick
BHEL (Cash)... Yesterday we have seen positive momentum in it and we will expect that this rally remain continue in today's trading session.
Support at 136 and resistance at 146. Look positive and could test its resistance level of 146. Three consecutive closes + weekly close above 146 will see sharp upside move in it.
Traders can buy and accumulate Bhel in panic around 141---140 in cash segment with strict stop loss below 136 on closing basis for the initial upside target of 146.
