Nifty 8127 /Sensex 26350/ Bank Nifty 18301
30 Advances /21 Declines/ 0 Unchanged
“Sensex ends flat but Midcap shines; Nifty Bank sinks on CRR hike”
Equity benchmarks closed flat with a positive bias after consolidation on Monday but the broader markets outperformed on further value buying. Banks underperformed after CRR hike announcement by RBI while ITC helped the market close in the green.
The 30-share BSE Sensex was up 33.83 points at 26350.17 and the 50-share NSE Nifty gained 12.60 points at 8126.90 while the BSE Midcap index jumped 1 percent and Smallcap rose 0.66 percent on positive breadth. About 1658 shares advanced against 936 declining shares on the exchange.
Proprietary sentiment indicator has still not hit the buy zone so there may be some downside in the near term and thus, the recovery from the recent damage to share prices may not be V-shaped, Ridham Desai of Morgan Stanley says.
Jayant Manglik of Religare Securities also says possibility of further decline can't be ruled out. He feels investors should use this fall to gradually add quality stocks with medium to long term perspective.
Vinod Nair of Geojit BNP Paribas Financial Services says RBI's future course of actions in the December policy meet including a possible rate cut will be keenly watched.
He feels RBI's unexpected move to increase the CRR to 100% on incremental deposits is negative for the banks as the additional interest cost will impact their profitability in the medium term. This measure will take away the incremental profitability expected through the yield from parking the excess liquidity into bonds, Nair says.
Key Results Today
Kanoria Chem
NFL
Tamil Newsprint
Tata Power
Wanbury
RESULT ANALYSIS & POLL
IMPORTANT RESULT: Tata Power
TECHNICAL LEVELS: Tata Power
CMP 72.70. Tata Power has immediate resistance 76 and support at 68.00
If resistance of 76.00 is positively breached and sustained then next resistance at 80---82.50 else it could test its support again. Break and sustain below 68 will make it positionally weak and lower support seen around 60—57.50 mark.
OUR RECOMMENDATIONS
Our call to Buy BHEL (FUT) around 127 proved great as it flared and made high of 129.60 before settling at 128.45 on closing. We booked profit around 129
[Profit of 10000 on 1 Lot]
Our call to Buy Just (FUT) above 362 proved great as it flared and made high of 367.45 before settling at 365 on closing. We booked profit around 364+
[Profit of 1600 on 1 Lot]
Our call to Buy Nifty (FUT) above 8060 proved great as it flared and made high of 8168.45 before settling at 8143.35 on closing. We booked profit around 8147
[Profit of 6525 on 1 Lot]
Our BTST call to Buy Adani Ports (FUT) around 366—365 proved great as it flared and made high of 275.30 before settling at 274 on closing. We booked part profit around 268.55+
[Profit of 11375 on 1 Lot]
Our call to Buy SunTV(FUT) above 454--452 proved great as it flared and made high of 466.70 before settling at 462.05 on closing. We booked profit around 464--466
[Profit of 28000 on 1 Lot]
Our call to Buy SRF (FUT) above 1490 proved great as it flared and made high of 1554.30 before settling at 1533 on closing. We booked part profit above 1533
[Profit of 21500 on 1 Lot]
Our call to Buy Asian Paints 460 CE (option) around 25 proved great as it flared and made high of 36 before settling at 23.30on closing. We booked part profit around 30+
[Profit of 3000 on 1 Lot]
Our call to Buy Reliance 1000 CE (option) around 18—16 proved great as it flared and made high of 27 before settling at 20.80 on closing. We booked part profit around 25+
[Profit of 4500 on 1 Lot]
Now what to expect??
Nifty and Bank Nifty future levels
-Nifty has immediate resistance at 8180---8230 and support at 8080---8020
Either side break or close with volume will decide further.
-On the other hand....
Bank Nifty has immediate resistance at 18650.
A move and sustain below 18650 will take bank nifty to 18900--19050 mark else it could test its support level of 18200 again. Further downside panic will see only close below 18200 mark.
Traders can trade with levels only and wait for confirmation.
Today's Top Pick
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