Nifty 8611 /Sensex 27866/ Bank Nifty 19286
48 Advances /3 Declines/ 0 Unchanged
“Short covering lifts Sensex 377 pts ahead of RBI monetary policy
It was an eventful day as market performed well despite tensions from the neighbouring countries.
Benchmark indices rebounded sharply with the Sensex rising 407 points intraday on Monday, driven by short covering ahead of RBI monetary policy and positive global cues. Strong auto sales data and easing geopolitical tensions after Pakistan PM Advisor comments also lifted the market sentiment. However, the index had fallen 802 points last week on profit booking.
The 30-share BSE Sensex was up 377.33 points or 1.35 percent at 28243.29 and the 50-share NSE Nifty gained 126.95 points or 1.47 percent at 8738.10.
Urjit Patel as Reserve Bank of India governor will announce its first monetary policy on Tuesday. New monetary policy committee is likely to keep rates unchanged but commentary will be closely watched, especially after retail inflation fell to 5.05 percent in August from 6.07 percent in preceding month, experts said.
A good news for Markets which is coming from across the border is that Sartaj Aziz, advisor to Pakistan Prime Minister Nawaz Sharif on Foreign Affairs, confirmed today that both India & Pakistan have decided to reduce tensions.
Globally markets were positive on account of likely settlement between Deutsche Bank and the US Department of Justice. Britain's FTSE was up 1.2 percent and France's CAC up 0.2 percent, at the time of writing this article. Asia closed higher with the Japan's Nikkei and Hong Kong's Hang Seng rising around a percent.
As the market rallied we booked profit in our recommendations.
Starting from BTST’s, we booked profit in Force motors BTST around 3680, it was recommended to buy around 3470—3450.
Another BTST in Ceat future we booked profit at 1355 and it was recommended to buy around 1325.
Our Intraday calls on
Hind zinc flared like anything as we booked full profit at 251 and we had recommended to buy around 240—241.
Another full profit was booked in Zeel future around 572—573, and we had recommended to buy above 561.
Last but not the least in Arvind we booked part profit around 357 and it was recommended to buy around 350—351.
Now what to expect???
Nifty and Bank Nifty levels
Nifty has immediate support at 8700 and resistance is at 8790---8830. Nifty future is facing hurdle at 8790---8830. Further upside rally will see only close above 8830 mark else it could test its support level of 8700 again.
Close below 8700 will see further downside panic till 8620---8550 and then to???
Bank Nifty has immediate support at 19300 and hurdle is intact at 19850.
Break and sustain below 19300 will take it to 19050--18900 mark in days to come else it could test its resistance level of 19850 again. Further upside rally will see only close above 19850 mark.
Trade with levels only
Today's Top Pick
TCS... Support at 2400 and resistance at 2460. Strengthening in INR against USD will give negative impact on TCS.
Break and sustain below 2400 will take to 2330---2280 mark.
Trade with levels only
