Market seems exhausted.Nifty failed to close above 5900 mark.

13 Sept. 2013,

Market looks exhausted after a gap-up opening on the first session of the week. Today, Sensex closed at 19732.76, negative by 49.12 points. Nifty closed almost flat at 5850.6 with a 0.1 points of loss. 
Among NSE sectoral indices, CNX Realty gained the most by 2.82% and CNX FMCG was the top loser by 1.14%.
In Nifty50 stocks, BHEL gained the most by 5.97% to close at 142.95 whereas HCL Tech was the top loser by 2.64% which closed at 1046.
JPAssociat was the turnover topper by traded quantity and Axisbank by the traded value.

Nifty Outlook :

Nifty bounded in between 5810 and 5930 levels. It's interesting to see Nifty above its resistance level of 5990. Volatility persists as Fed announcement in coming week.
Important Support : 5725
Important Resistance : 5990

Biggest rise in Sensex since May, 2009, Hit 20000 mark.

Depreciating US $ against INR changed the sentiment and  cherished as

Trade deficit in August dropped to USD 10.91 billion from USD 12.27 billion in previous month; imports declined to USD 37.05 billion from USD 38.10 billion while exports increased to USD 26.14 billion from USD 25.83 billion during the same period.

Sensex hit 20k mark 1st time after 25th July, 2013. Jumped 727.04 points to close at 19997.1. Broad based Nifty50 closed at 5896.75 with a whopping 216.35 points' gain in a single day. All 18 NSE Sectoral indices closed into positive. CNX Auto gained the most by 5.98%. In Nifty50 stocks, Tatamotors gained the most by 9.82% and closed at 349 whereas NMDC was the top loser by 2.27%, closed at 118.4.

JPAssociat was the turnover topper by the traded quantity and Infy by the traded value. 

Advance/Decline ratio was positive 3.25 : 1 as 683 stocks gained and 210 declined today on NSE.

Highest single day gain for Sensex :

Date	Points
18-May-09	2,110.79 points
25-Jan-08	1,139.92 points
25-Mar-08	928 points
14-Nov-07	893.58 points
23-Oct-07	878.85 points
23-Jan-08	864.13 points
23-Jul-08	838.08 points
31-Oct-08	743.55 points
4-May-09	731 points
10-Sep-13	727.04 points

Nifty Outlook :

Nifty has crossed its resistance of 5810 and closed 86 points above. Now, Nifty should test further resistance of 5990. Crossing 5990 and sustaining above the level will allow to speak about new North-side levels.

Immediate Support : 5810

Immediate Resistance : 5990

Nifty closed at 6 week high. US$ slipped to 65.

Correction in US$ against INR and decisions by Mr.Governor convinced investors to hold the integrity with the Indian economy. 

Today, Nifty rallied 87.45 points to close at 5680.40 . Nifty gained almost 361 points or 3.81% in a week Sensex gained 290.3 points and closed at 19270.06. US$ slipped to 65 from it's high of 68.6.

Among NSE Sectoral Indices, CNX Infra gained the most by 3.06% whereas CNX Media was top loser by 0.69%.

In Nifty50 stocks, ICICI bank was the top gainer by 7.64% and closed at 962. Bankbaroda sheded the most by 2.7% and closed at 489. JPAssociat was the turnover topper by the quantity traded and ICICI Bank by the traded value.

Nifty Outlook :

As published earlier, Nifty took support around 5330 and bounced back from 5318. Now today, Nifty has crossed its major resistance level of 5600. Now next resistance will be at around 5800 level.

Immediate Support : 5610

Immediate Resistance : 5770

FDI in Pension Fund

You may finally be able to take the help of a foreign pension fund manager to secure your retirement.

It's Features :

 1]   The Pension Fund Regulatory and Development Authority Bill 2011 will give statutory powers Pension Fund Regulatory and Development Authority (PFRDA) which was established in August 2003 as a regulator for the pension sector.

 2]   The passage of the bill could see pure pension products coming into the market. At present most of the pure pension products available in the market are linked with insurance coverage.

 3]   The Pension Fund Regulatory and Development Authority Bill 2011 seeks to promote the pension sector by establishing a regulator as India does not have a universal social security system.

 4]   The Cabinet had approved 26 per cent foreign direct investment (FDI) in pension funds but the FDI cap was not mentioned in the original bill.

 5]   In 2005, the government had earlier introduced a pension bill but it lapsed as the Lok Sabha's term got over before the legislation could be passed.

 6]   The Pension Fund Regulatory and Development Authority Bill 2011 was reintroduced in the Lok Sabha in 2011 by the then finance minister Pranab Mukherjee and it was subsequently referred to a standing committee.

 7]   PFRDA's National Pension System (NPS) was made mandatory for all new government recruits, except armed forces, joining after January 1, 2004.

 8]   The NPS was later opened up to all Indian citizens from 2009 on a voluntary basis.

 9]   The NPS allows its subscribers to invest in stock markets but there is a cap on equity investment. The NPS also offers subscribers the option of selecting the fund managers of their choice.

 10]   The pension bill could help channelize funds into building long-term assets for the country, including the infrastructure sector. The government wants to ease rules for insurance and pension sectors to allow them to invest in infrastructure, where it is seeking $1 trillion investment till 2017.

Many experts believe that the entry of foreign funds would offer customers more choices and better service standards. The entry of foreign players will result in better technology, larger bouquet of products and better practices, which will translate into better returns.

Allowing FDI in this sector is expected to attract international players. This will drive greater competition, bring in global best practices as well as product and process innovation.

What the pension reforms will do is attract more money and help the companies sustain their businesses over a long period of time, which is key for the sector. However, whether or not the reforms will improve service standards will depend on how well the regulator keeps tabs on malpractices and the quality of services provided by the pension funds.

 

D-laal street : Bloodbath on the Indian bourses, Biggest fall after 7th July 2009

Market opened with a gap down on fear that the roll-back of US stimulus could spark selling pressure by the overseas investors in the equity space. After the Reserve Bank of India's moves to tighten capital outflows and curb gold imports spooked foreign investors and USD/INR hit an all time high of 62, Indian equity markets plunged more than 4%. Nifty nose down by 234.45 points and ended at 5507.85 after making a day low of 5496.05 whereas Sensex collapsed by 769.41 points to close at 18598.18; investors lost Rs two hundred twenty thousand crores. The Reserve Bank of India (RBI) announced certain measures late on Wednesday to restrict how much its citizens and companies can invest abroad. This raised fears of outright capital controls that would further undermine the confidence of foreign investors.

All the Sectoral Indices on the National Stock Exchange closed into red. CNX Realty was the top loser by 6.66% followed by BankNifty(5.74%), CNX Metal(5.47%), CNX PSU Bank(5.38%) and CNX Finance(5.27%) which closed down more than 5%.
In Nifty50 stocks, just three stocks closed positively. Heromotoco was the real hero which hit a new week high at 2004.3. It gained 2.17% and ended at 1978.
JPAssociat was the turnover topper by the traded quantity and ICICIBank was by the traded value on NSE today.
Four stocks hit 52 weeks' low viz.BHEL, LT, PNB & SBIN.
Advance/Decline ratio was 5.25 : 1 as 997 stocks declined and 190 gained today on NSE.

Downside continued for the 8th day consecutively

2nd August, 2013 Investors lost the confidence after Goldman sach's underweight marking on Indian stocks and resulted into bearishness. Nifty ended at 5678.45 with a downfall of 49.4 points whereas Sensex ended negatively with 153.75 points at 19163.44. Nifty closed at a month low, the tested level first time after 26th June. 
INR was trading around 61 which is an all time low and a headache for the economy.
State-run banks continued recent falls on asset quality concern, while Bank of America-Merrill Lynch downgraded public sector lenders Bank of Baroda and Union Bank of India on worries about market-to-market losses on their bond portfolios.
Goldman Sachs downgraded Indian stocks to underweight in a note released Wednesday, saying it sees an increasing risk of a potential reversal of the foreign fund flows into equities seen over the past few years. "Recent activity data has been sluggish with no signs of a pick up in investment demand," Goldman analysts wrote in the report, adding they were looking for clearer growth signs to turn constructive.
Among NSE's sectoral indices, CNX Realty plunged the most by 4.06% folled by CNX Metal, PSU Bank, PSE which fell more than 2%. CNX IT and CNX Media was the only gainers and the IT rose the most by 1.04%.
In Nifty50 stocks, Ranbaxy gained the most by 4.06% and ended at 273 whereas Powergrid was the top loser by 11.52% as the company declared that they would sell shares to raise funds.The stock ended at 91.

Nifty Outlook :

Nifty has broken the crucial support of 5830 and entered into a bearish territory for a short period but a pullback will be expected up to 5840-5870 levels. Upholding the 5950-5970 levels will again reverse the trend with a habitual volatility.
Immediate Support : 5610 / 5560
Immediate Resistance : 5720 / 5830.

Nifty managed to close above 6000 mark and Sensex above 20000.

Today, lackluster market managed to close above the magic figures of their indices 6000 and 20000 for Nifty and Sensex respectively for the consecutive week. Nifty ended at 6022.8 after losing 15.25 points and Sensex ended at 20133.13 with a marginal gain of 4.72 points. Among NSE Sectoral Indices, CNX IT was the major gainer by 2.61% and CNX Realty was the top loser by 2.05%.
In Nifty50 stocks, TCS gained the most by 5.03% and ended at 1744 whereas BHEL was the top loser by 8.97% which ended at 172.5.
Advance / Decline ratio was negative as 737 stocks declined and 434 stocks gained today on NSE whereas 116 stocks remain unchanged.


Nifty Outlook :

Nifty managed to close above 6000 to hold bullishness and which is a good sign. Smart recovery from 5910 level has boosted the confidence of the bulls which may convince for a new high in recent months.

Immediate Support : 5960 / 5880
Immediate Resistance : 6140 / 6230

IT boosted the market, changed the sentiment. Nifty above 6000 mark after 30th May

A Murthy Miracle stimulated the sentiment of IT today.
Infy Q2 results has beaten the analysts' expectations and it has reflected into its' stock price with a jump of 11% at the closing. Nifty ended above 6000 mark first time after 30th May,2013 with a gain of 82.60 points and Sensex jumped to 19979.45 with a rise of 303.39 points'. Among NSE Sectoral indices, CNX IT has played an imperative role by gaining the most by 6.62%. CNX Realty was the top loser by a 0.54% drop.
In Nifty50 stocks, Infy was the top gainer by 10.92% which ended at 2804.45 whereas JPAssociat was the top loser by 3.23%, ended at 52.45. Unitech was the most active by the traded quantity and Infy by the traded value on NSE today. Advance/Decline ratio was negative as 492 stocks declined and 396 stocks gained today on NSE.


Nifty Outlook : 

As clearly mentioned in 28 June blog,  Nifty has taken support at 5770(bounced back from 5775.55) and marched with a upward trend thereafter. On the charts, weekly as well as daily, Nifty is in a bullish trend unless and until it breaks and sustains below 5840 level. Corporate results may influence the specific sectors and the sentiments indirectly in coming weeks. Rupee Riddle also affects the market possessively in coming days.

Support : 5960 / 5880
Resistance : 6140 / 6230

Biggest single session rally of 2013, convinced investors

Sensex jumped 486.24 points and ended at 19362.19 while broadbased Nifty rallied whopping 146.45 points' and ended at 5828.8. This is the biggest single day rally in 2013 for Indian equity market. The Sensex regained the psychological 19k mark while the Nifty reclaimed to sustain above 5800 level. Optimism that Fed will not rush to rein in its stimulus measures fuelled a rally in global markets especially Asian bourses. Sentiment was also boosted as the INR gained on Friday, further retreating from a record low hit on Wednesday. The Govt.'s push to raise gas prices heaved prospects for more fiscal and economic  even though shares in energy companies closed off the day's high.
All the sectoral indices on NSE gained toaday. CNX Metal gained the most by 4.3% followed by CNX Infra(3.99%), CNX PSE(3.9%), CNX Energy(3.76%), CNX Finance(3.65%), CNX Realty(3.58%), CNX BankNifty(3.4%), CNX Commodities(3.16%) and CNX Auto(3.06%) which gained more than 3% today.
In Nifty50 stocks, just 3 stocks ended into red territory. Jindalstel was the top gainer by 7.4% and HCLTech was the top loser by 2.81%.

Nifty Outlook : 

First three days of the week, spot Nifty broke the short term bullish trend and closed below that. It indicates the weakness on the shorter term subject to trade below 5860-5870 levels. So, triggering 5870 level, the short term bears could be trapped as volumes in Nifty Fut rose about 32.66% to the last week on weekly chart.

Immediate Support (For Jul Fut) : 5810 / 5770
Immediate Resistance : 5877 / 5965

No more panic after yesterday's turmoil

Today, volatile market sustained above yesterday's closing and evade the panic. Indian equities edged higher on Friday after earlier hitting a two-month low yesterday; as exporters such as Infy advanced on hopes a record low rupee would improve overseas earnings and helping indexes end a tough week on a brighter note. Broad-based Nifty added  just 11.8 points and ended at 5667.7. The Sentive index, Sensex ended at 18761.22 with a marginal gain of 41.93 points.
Among NSE Sectoral Indices, CNX IT was the major gainer by 1.46% whereas CNX PSU Bank Index fell the most by 1.96%.
In Nifty50 stocks, Indusing Bank gained the most by 3.95% and ended at 467.  Jindalsteel was the top loser as it corrected 7.79% and ended at 204.65.
Bankbaroda, BHEL, DLF, Gail, Jindalstel, JPAssociat, PNB, Ranbaxy & Sesagoa hit the 52wk low today.
Advance/Decline ratio was negative at 2.04 : 1 as 625 stocks declined and 307 stocks gained today on NSE.

Yesterday, the Rupee slipped to a record low of 59.98, triggering sell-offs in the bond and equity markets as the chairman of US Federal Reserve Ben Bernanke signaled a tapering of its monetary stimulus which also spooked stocks,currencies,bonds and commodities globally.
As a result, we have seen the global meltdown triggered by indications that the US Fed may stop the monthly infusion of $85 billion through bond buyback,popularly called QE 3 and a weak Chinese manufacturing data as also the fall of the Rupee led to a 526 points slide in the Sensex yesterday, the biggest single day loss in 21 months. Yesterday,  it was Rs 2,100 crore net selling by FIIs in Indain Equities and made Dalal Street the Laal(Red). Similarly,the Rupee also closed at its all time low of 59.56 against the US$. In addition, trading in the government bonds market was also suspended for an hour because of a bond price crash,a rare incident. Yields on the 10-year bond rose by 12 basis points. The Reserve Bank of India managed to stave-off a bigger crisis by preventing the currency from crossing the psychologically sensitive barrier of 60 against the dollar and restricting the exchange rate to 59.56 at close through persistent dollar sales in the market but while the 60 level has been protected, markets are far from assured as RBIs forex reserves of $290bn are just enough to cover seven months of imports. Efforts by policy makers,economic advisor to the PMO Raghuram Rajan and Planning Commission chief Montek Singh Ahluwalia to talk up the Rupee also didn't yield much results. But today The rupee recovered against the dollar on Friday as dealers adjusted their positions following sale of the US currency by the Reserve Bank of India (RBI) in support of the Indian currency on Thursday.

“The RBI came in strongly to protect the rupee from falling below 60 per dollar yesterday (on Thursday) and that has clearly drawn the line for the market. Also, there have been positive comments from the finance ministry and RBI since morning which has nudged banks to cut their long dollar positions. We expect exporters to also sell dollars at these levels,” said a dealer with a private bank. RBI deputy governor H.R.Khan said Friday the central bank “will take steps if necessary” on the rupee, adding that both RBI and the government were “watching the rupee.” Finance minister, P.Chidambaram also said that the government and RBI are watching the “rupee, market situation.” “Government is not happy with the rupee situation. RBI will take necessary actions on the rupee,” Chidambaram said.These comments have soothed the market, which now expects the rupee will find support from the central bank if needed. At 3.10pm the rupee was at 59.30 to the dollar, up 0.47% from Thursday’s record close of 59.58. It rose to 59.14 per dollar earlier on Friday after opening at 59.77.

Nifty Outlook : 

As said earlier, any bounce back towards 5900 would be considered as to ease long positions, Nifty made a high of 5867.4 on Tue. but could not sustained at higher levels. Now 5640 (in Fut. & 5610 in spot) is the last supportive trend level and any sustainable closings below such level will make the market bearish for the short term.

Immediate Support : 5640 / 5610
Immediate Resistance : 5690 / 5770