Saturday 6 October 2012

Todays Update : Nifty is likely to correct


Indian shares snapped four-day winning streak Friday owing to profit booking. The index had gained 79 points in early trade following Cabinet’s approval to 49% FDI in insurance and pension. Meanwhile, the NSE Nifty, which plunged 899 points intraday due to freak trade by brokerage house, declined 40.65points to end at 5,746.95. The index touched a low of 4,888.20 today due to faulty order punched by adealer of Emkay Shares and Stock Brokers while the BSE Sensex fell more than 300 points. The trading was halted by the NSE between 9:50 am to 10:05 am. On upside if level of 5,800 breaches decisively then we could see rise up to mark of 5,860, on the lower side if level of 5,700 is breaches then Nifty could retrace up to its mild support of 5,620 mark first and thereafter up to its strong support of 5,600. Technical momentum indicators are currently suggesting uptrend in it. Stochastic is currently moving in overbought zone, on the brink of entering into positive territory. RSI is trading in overbought territory at 76 showing negative crossover.Another momentum technical indicator MACD is trading in positive zone, showing positive divergence,also indicating uptrend.



                                             3 MONTHS DAILY CHART OF NIFTY


                                           SHORT TERM OUTLOOK ON STOCKS



Stocks with short term Bullish Outlook:

STOCK                                                     S1              S2            R1              R2
TATA MOTORS                                    239.17      197.78       302.22       323.88
HUL                                                        483.67      401.93       607.92       650.43

Stocks with short term Bearish Outlook:
STOCK                                                     S1              S2             R1              R2
HDFC                                                    662.2         574.45        806.75       863.55
HCLTECH                                             541.23       508.92        598.93       624.32



                                                     NEWS TO WATCH  TODAY

1. IVRCL plunges over 9 per cent as Essel Group offloads shares
2. HDFC plunges 6% as Carlyle sells 3.7% stake for nearly Rs4,300 crore
3. Oil India, IOC buy stake in US shale assets
4. Pepsi cuts price, Coke unlikely to follow the suit.
5. Hike in insurance FDI limit may attract Rs. 30k crore: IRDA



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