Wednesday, September 7, 2011

bazaaredge.com Stock Market Outlook 07Sep11

The key benchmark indices surged to strike intraday high in late trade on

aggressive bargain hunting in index heavyweights. Volatility was high across

the globe with European markets trading firm after initial hiccup while select

Asian markets turned positive after initial declines. US index futures also cut

losses. A setback in global markets on worries of a recession in the US and the

ongoing eurozone debt crisis had weighed on early sentiment for the second

day. The Sensex rebounded into the green in afternoon trades, as IT shares

recovered. The Sensex and Nifty closed with gains of 0.9% each. The mid-cap

and small-cap indices logged gains of 0.6% and 0.7%, respectively. Among the

front runners, RIL, M&M, JP Associates, Jindal Steel and Sterlite gained 2-4%,

while DLF, Sun Pharma, Bharti Airtel, Bajaj Auto and NTPC lost 1-4%. Among

mid caps, Hexaware Tech, Educomp Sol, Polaris Soft, Amtek Auto and Gujarat

State Fert gained 6-8%, while HDIL, TV18 Broadcast, Dewan Housing, Federal

Bank and HT Media lost 2-3%.

Markets Today

The trend deciding level for the day is 16,749/5,027 levels. If NIFTY trades

above this level during the first half-an-hour of trade then we may witness a

further rally up to 17,009–17,155/5,111–5,157 levels. However, if NIFTY

trades below 16,749/5,027 levels for the first half-an-hour of trade then it may

correct up to 16,602–16,342/4,981–4,897 levels.

 

The indices have closed at the upper end of the intraday range as the bulls were able to offer support at lower levels during the session. The intraday range specified for the Nifty between the 5060 / 4915 was overcome marginally as the Nifty tested the 5073 levels, thereby exceeding our intraday counts on the upside. The coming session is likely to witness resistance at the 5150 levels on advances. Support is likely at the 5000 levels. The bullish pivot for the session is likely at the 5025 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 4990 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session.

 

The daily candle chart of the Nifty shows a larger bodied bullish candle corresponding with a bullish outside day formation on the western bar charts with positive implications, indicating the bulls overcoming the bears at lower levels. Staying above the 5025 level with higher volumes and open interest will see the bulls retaining their intraday domination over the bears. The Nifty sustaining below the 4990 levels may trigger a fresh bout of declines

 

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Disclaimer : This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. And not soliciting any action based upon it. The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. We or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report

 


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