Nifty opened on a positive note but failed to sustain above 4930. On the
downside it found support at 4860 levels and finally closed marginally
above the same.
n Market wide open interest is seen at Rs. 98,014 cr. Nifty futures have
shed 15 lakh shares in open interest with futures trading at a discount on
account of profit booking.
n Nifty is expected to test 5000 levels on sustain above 4850. Turnaround
for the Nov series is seen at 4800 above which we remain in positive territory.
On the higher side breach of 5035 will change the medium term
trend to positive. Failure to do the same would indicate possibility of further
sell-off.
n Tata Steel is expected to test 550 in the near term as it remains positive
above 490. Similarly Sail and JSW steel are expected test higher levels.
Capital goods majors' trade with a positive bias led by BHEL and LT.
Seimens is expected to under perform and hence we advise investors to
shift to ABB over the medium term
n Tech majors remain in a medium term downtrend led by Infosys, Wipro
and HCL Tech. Metal majors are expected to trade with a positive bias.
Ranbaxy is expected to test lower levels of 390 before any bounce back is
seen in the same. Biocon remains in medium term up trend above 226
and we advice accumulation at lower levels.
n Nifty options concentration is seen at 4900 call and 4600/4700 put options.
Implied's remain on the lower side at 27-28 levels. No significant
put writing is seen in the current series while in case of call options writing
is seen at 4800 levels. Currently we trade above the call writing territory
indicating some discomfort for call writers.
The market opened higher on the back of positive global cues at 4947 levels but then it failed to move higher. The
market collapsed towards the end mainly due to over retracement in the short term from lower levels.
It seems that the Market is correcting to the current up move. The market may fall to 4860/50 (16410/14360) may act
as a crucial support at the beginning and failure to hold these levels may push the market towards next major support
4800/4790 (16160/16140). We feel that these levels should support the market heavily as the sharp recoveries from
these levels is not ruled out, however likely closings below 4790/16140 levels will lead to one more round of weakness.
In case the market sustains above 4850/16360 levels in the second half of the trading session then the market may add
one more short term rally to the current momentum that may last up to psychological barrier 5000/5015 levels (16890/
16900).
"Top Buy" with a medium term view
BHARAT ELECT: Cls: 1586.00. On Tuesday there was action in almost all the PSU stocks like NMDC, Mineral & Metals,
Hind Copper, BEL and BPCL. In that space we would choose BEL as the pick to invest and hold with a medium term
view. Currently the stock is correcting to its decent up move between Rs.1390 and Rs.1660. We would recommend to
buy between Rs.1585 and Rs.1555 with an upside target Rs.1720 and Rs.1770. Keep a stop loss below Rs.1520.
Unusual Activity
Educomp Solutions: Cls.715.00. It was the highest loser in the F&O group and supported with average huge
volumes. Technically we can say that the stock is near to its multi support area between Rs.680 and Rs.690 since July
2009. As the sell of was steep we may expect the level of Rs.660/650 maximum in the near term. However, a close
below these levels may weaken the trend further. Any sharp recovery from Rs.660 and a close above Rs.700 will
certainly improve the medium term sentiment for the stocks. In case the stock sustains at Rs.690 and closes above
Rs.745 then it seems that it will challenge Rs.850 in the near term
