Nifty Trend Today:
Nifty continued its upward move on the final trading session of the week and tested 5,700 levels. However, it faced stiff resistance at this level and corrected until 5,670 levels from where it again gained some momentum and started moving upward. According to SEBI data, FIIs have net bought Rs 6262 crore of shares in three trading sessions between September 14-18. This is nearly 70% of the Rs 9323 crore of net purchases for the month so far. Technical indicators (Slow Stochastic, RSI) are supporting this view. Slow Stochastic is indicating a be signal as %K (Slow stochastic) rose above 70 levels and turned back below % D. RSI is also moving near overbought region at 74 levels. Hence, profit booking will occur in near term and a wide correction is due in the range of 6 to 8% inforthcoming trading sessions.
However, MACD which has crossed-over for a bullish indication is giving hopes to bulls. Nifty is expected to open in positive terrain in the coming week, but may find pressure on higher levels. The first resistance, for the week ahead, is 5,740 followed by 5,800. The first support, for the week ahead, will be at 5,600 and the further downside support will be at 5,540. After hitting fresh 2012 highs, the Indian benchmark indices are expected to take a breather before determining the next direction of the market.
SHORT TERM OUTLOOK ON STOCKS
Stocks with short term Bullish Outlook:
STOCK S1 S2 R1 R2
RELIANCE INFRA 512.28 480.52 563.53 583.02
SAIL 87.87 83.08 95.67 98.68
Stocks with short term Bearish Outlook:
STOCK S1 S2 R1 R2
TCS 1290.8 1277.55 1324.8 1345.55
DR REDDYS LAB 1620.23 1596.77 1685.93 1728.17
News To Watch :
1. NSE Nifty and BSE Sensex at 14 months high as reforms continue.
2. Finance ministry cut rates of taxes on overseas borrowings to 5% from 20%.
3. Reliance communications increased mobile phone call prices by 25% in four
telecom zones.
4. 3% targeted fiscal deficit by FY15, not feasible: Planning Commission.
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