Nifty index likely to test 5900 levels

Outlook For coming week: – We expect indices to remain range bound and sideways corrective action to continue. Nifty index is likely to trade between the range of 6150 and 5950 levels. Despite continued buying from FII’s and positive global environment bears will have upper hand throughout the week. Momentum indicators are also trending downward.

We advise trader to short on rallies in the range of 6150 and 6175 levels. If Nifty crosses 6200 level, then traders should reverse the trade.

Near term resistance for Nifty index are at 6110 and 6150 levels. Cross over above 6150 level could lift Nifty index to 6200 level. Support for Nifty index is at 6000 and 5965 levels. Fall below 5965 level, nifty index could drag up to 5910 level.

Week so far: – Indian bourses started week with gap down opening. Indices continued its last week selling pressure. Nifty index fell below 6000 level, lost over 300 point in just seven trading sessions. Market spurted on Thursday in the wake of strong global cues. Global market rallied after the comment from US Fed’s Janet Yellen which boosts the hope of easy liquidity to continue. However, market pared gain tracking rise in inflation numbers. INR also fell to almost 64 against USD.

On macroeconomic front, India’s industrial production rose to mere two per cent from that a year back, compared with 0.4 per cent in August. The tepid show was mainly on account of a continued decline in output of capital goods, as high interest rates kept demand for consumer durables low. Consumer Price Index, had returned to double digits in October, after six months, at 10.1 per cent, against 9.84 per cent the previous month. WPI inflation climbed to eight month high at 7% in October against 6.46% in September.

On results front, Aluminum major Hindalco’s second-quarter net profit fell marginally to Rs 357 Cr. from Rs 359 Cr. a year earlier. Revenue rose 2% to Rs 6,305 Cr. Tata Steel reported second quarter consolidated net profit at Rs 917 Cr. as against loss of Rs 364 Cr. in a year ago period. Net sales of the company rose to 7.4 per cent to Rs. 36,370 Cr. PSU banking major SBI’s net profit slumped to 35 per cent to Rs. 2,375 Cr. In the quarter ended September. SBI’s net NPAs also rose to 2.91% vs 2.83% on quarter. Mahindra & Mahindra posted net profit for the quarter ended September 30 was Rs 990 Cr. Compared to Rs 902 Cr. a year earlier. Net sales fell about 9 per cent to Rs 8,814 Cr. Compared with Rs 9,659 Cr. a year ago. Oil major ONGC reported a 3% rise in net profit at Rs 6,064 Cr. for the quarter ended September 2013 against Rs 5,896 Cr. in the same period a year ago. Net sales increased 16% to Rs 22,312 Cr. as compared to Rs 19,218 Cr. in the year-earlier period.

At the closing of the week BSE Sensex fell by 1.29% to 20399.42 and NSE Nifty down by 1.37% at 6056.15.

Courtesy: commodityonline.com

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