Market Updates and Overview for 06/03/2014

Updates for views suggested in morning

Ranbaxy
LTP- Rs.371.35, day high of Rs.374.90, closing -Rs.372

Jubilant Food
LTP - Rs.1060.80, day high of Rs.1068.40, closing - Rs.1059.60

Reliance
LTP - Rs. 822.25, day high of Rs 824.40( tgt 825), closing Rs. 822.45

Idea
LTP - Rs. 132, day high of Rs. 133.85 , closing Rs 132

REC LTD
March 20 call LTP- Rs.6.65

M&M
March 960 call - Price near SL. call not initiated. Wait for tommorow.

Nifty , Bank Nifty and CNX IT Update

After opening higher at 6345 nifty moved higher taking support at 6350 levels. After making a high of 6407 nifty closed at 6401 just 14 points away from lifetime high. Maintain positive bias.

Bank nifty has crossed resistance of 11250. Expect some volatility with positive movement.

CNX IT is still range bound with high of 10300. Expect CNX IT to break out of range of 10200 to 10350 as both TCS and WIPRO are at support levels. Breakout on either side to decide next direction.

TCS: We can go long in TCS with SL of 2220.

WIPRO: We can go long in Wipro with SL of 580

Market News

Nifty reclaims 6,400; experts see index rising to 6,700 as FIIs make a comeback 

(Source: Economic Times)

The rally in the Indian markets in the last 10 days has taken most market men by a surprise. The Nifty has reclaimed its 6,400 levels for the time since December 9, 2013.

FIIs, who had turned net sellers in Indian markets on concerns of tapering in the US and slow-down in China, are back with bang. They have been net buyers in cash segment as well as in index futures for the last 14 consecutive sessions. FIIs bought more than Rs 2,300 crore in Nifty Index futures and Rs 2,200 crore in the cash market in last four sessions alone. 

"India is moving into a very sweet spot where the export owners will still have a very good gearing in 2014 with the strengthening global economy and a competitive currency," said Adrian Mowat, Chief EM & Asian Equity Strategist, JPMorgan in an interview to ET Now. 

"As we move towards the election the hope is that you are going to see many projects which are being stalled to get restarted. There will be a build-up in confidence in domestic economy. So you will see flows to domestic part of stock market as well as the export part performing well," he added. 

Rahul Chadda, Co-Chief Investment Officer, Mirae Asset Global Investments, doesn't rule another 5-7 per cent in the run-up to elections. 

According to Prakash Diwan, Director, Altamount Capital Management, the market is ecstatic on hopes that the NDA government will come to power after elections as suggested by opinion polls.

"My sense is it is a little bit of an early euphoria that is setting in thanks to some surveys and some polls that have thrown in some positive indication that the NDA could finally make its march towards setting up a government," he said to ET Now. 

"The momentum will take the market much higher possibly all the way to above 6,700 plus. That is the kind of zone that it has to go into before it starts kind of seeing some sort of reversal. The reversal would have to be at the back of a negative news flow and that could happen only after a while. I do not think we are looking at some negative developments or news flow very soon. My sense is we could probably see 6,650-6,700 first and then the reversal could take it down all the way to 6,000 or even below that," he added. 

Mitesh Thacker, Technical Analyst, miteshthacker is of the view that after today's rally the market has broken the trendline on the upside. He expects the momentum rally to continue and take the Nifty to fresh highs in coming sessions. 

"I would trail Nifty stoploss just below 6,335-6,330 and look at this rally possibly extending on the upside and see the target in the range of about 6,500 with further possibilities on the upside. Momentum has come back in with some kind of strength. While CNX IT still is a worrisome factor, what is good is that the stocks like ONGC, ITCor Reliance, which individually enjoy a good weightage in the Nifty, are going up along with the Bank Nifty," he said to ET Now. 

"In the short term, there could be a positive shift on the upside and 6,500 could be tested at this time. The only advise would be to trade with a tighter stop loss around 6,330-6,335," he added.

According to Ashwani Gujral, Fund Manager, ashwanigujral.com, staying above 6,400 opens an upside of another 400 points for the Nifty. 

(The above mentioned are only views expressed by experts and is in no way a solicitation to buy or sell any stock mentioned. Please consult your broker or financial adviser before investing in the stock markets.)