How companies plan to spend the tax bonanza will set the market mood for the medium-term
Moody’s has affirmed a stable outlook for banks including Canara Bank, Oriental Bank of Commerce, Syndicate Bank and Union bank of India. The firm changed the outlook on Punjab National Bank to positive from stable.
251 stocks hit new 52- week low on BSE including Indiabulls Housing Finance, Wockhardt, Jindal Steel & Power, Eris Lifesciences, Godrej Industries and JSW Steel among others.
Measures such as removal of surcharge on foreign portfolio investors (FPI) and removal of CSR violation as the criminal offence will cheer market participants.
Nifty PSU Bank added over a percent led by gains from Bank of Baroda and PNB, which jumped over 2 percent each. Bank of India, Canara Bank, IDBI Bank and Oriental Bank of Commerce were up 1 percent each.
Nifty Bank shed close to 2 percent dragged by YES Bank which plunged 14 percent.
Gold entered in trending wave, which could last up to $1700 in the coming few months and Dollar index is trading above 98, indicating at money is flowing into safe heavens.
Technical setup of Nifty Private sector Bank Index looks bullish on the charts. Largecap Private banks can outperform in the current scenario.
Except pharmaceuticals, other indices are indicating weakness and one should be cautious in adding long positions at higher levels
Nifty needs to sustain above 11839 levels for strong directional momentum, whereas trend will reverse only below 11574 mark.
Major support for Bank Nifty at 30000-30200
Nifty is in a short term downtrend and can extend the fall towards 11,450-11,500 zone. One should remain bearish in Nifty with the stop loss of 11,800 on closing basis.
For the coming week, the strategy should be to Sell Nifty at 11830-11840. Traders can keep a stop loss at 11900 for the same.
Bank Nifty options data for upcoming weekly expiry depicts 31,000 as strong support as aggressive Put writing is seen at 31,000 and on upside the highest Call OI is at 32,000, which can act as strong resistance
The breadth of the market favoured the advances as 910 stocks advanced and 793 declined while 395 remained unchanged on the NSE. On the BSE, 1304 stocks advanced, 1100 declined and 133 remained unchanged.
Deliberately capping a sector in the index will create trust issues. That said, the free-float market capitalisation criterion is also not perfect and a rethink is due.
Fresh buying interest can be seen in Bank Nifty as the OI remained almost flat during the week and the index traded near its sizeable Call base of 30,000.
The recent low of 11,550 is an important level to watch out for. The breaking of this level will confirm the three indecisive candle patterns on the weekly chart
Nifty is moving in a channel of 11,650-11,850 where it is likely to break out on the upside with a potential target of 12,500, said Amit Gupta of TradingBells
Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
The top Nifty gainers include ICICI Bank, Asian Paints, IndusInd Bank, Titan Company and Larsen & Toubro while Tata Motors, Cipla, Infosys, Bharti Airtel and BPCL are the top losers.
India VIX moved up sharply by 14.19 percent in the last week at 21 mark which is highest zones in last six months which suggests the momentum but the risk is rising for taking fresh trade at higher zones.
From the real estates space, the top gainers included Godrej Properties, Phoenix Mills, Prestige Estates and DLF while the top losers are Indiabulls Real Estate, Oberoi Realty, Sobha and Sunteck Realty.
Five stocks have hit record highs on the NSE: IDFC First Bank, ICICI Bank, HDFC Bank, RBL Bank and Axis Bank
The breadth of the market favoured the advances with 1,317 stocks advancing and 381 declining while 402 remained unchanged. On the BSE, 1,639 stocks advanced, 548 declined and 123 remained unchanged