03/12/2013
Market Overview:
Indian markets extended its gains for the third consecutive session with the key benchmark Indices closing higher by over half a percent. The Nifty Index moved up 41.75 points and closed at 6217.85 while the BSE Sensex was up 106.08 points and closed at 20898.01. The overall market breadth remained positive. Prominent gainers among the Nifty stocks include RANBAXY and JINDALSTEEL while the losers were HINDUNILVR and POWERGRID.
Nifty Technical Outlook:
The Nifty Index closed at nearly one month highs after rallying higher by half a percent on the first trading day of the week. The Index registered an intraday high of 6228.70 and a low of 6171.15 and finally closed at 6217.85 up 41.75 points from its previous close. The Nifty breadth remained positive 35 advances to 15 declines.
The Index has bounced back strongly from its recent lows and is trading above its 21 and 50 DMA. The Index has just closed around its immediate resistance levels of 6215 levels. A move past 6215 could take the Index higher towards the 6332 and 6352 levels on the upside. On the contrary, failure to move past 6215 levels could reverse the Index lower towards the 6062 and 5972 levels on the downside. Expect the Index to trade in the range of 6000 - 6300 in the near term. Only a fall below the 200 DMA of 5865 levels could turn things negative for the Index in the medium term.
It would be an interesting week ahead with participants shifting focus on the results of the five state assembly polls. The winter session of parliament would begin on December 5. On the macro front the November month manufacturing and Services PMI data is due for the week. Global cues, FII flows and movement of the rupee against the US dollar would also determine the near term trend for the Index.
Technical Pick of the day:
RELCAPITAL: BUY(382.60)The stock is in an intermediate uptrend and is trading above its key 21 and 50 DEMA. An ascending triangle pattern on the daily charts of the stock reflects continuance of the current upside momentum for the stock. The 14 - D RSI is pointed higher at 61.33. Momentum oscillators on the daily charts of the stock have rolled bullish. We expect the current positive momentum to continue for the stock. We recommend buying the stock at current levels for a target of 402 and a SL of 364 in the near term.
