Make Your Money, Work For You
RANGE BOUND MARKETS REQUIRE PATIENCE
FROM TRADERS AND INVESTORS; TREND IS UP – SIDEWAYS MOVE MAY BE A CORRECTION IN
AN ONGOING UPTREND.
FRIDAY SAW TRADING INSIDE
A NARROW RANGE – THIS SUGGESTS A THRUSTING MOVE IS COMING EARLY NEXT WEEK.
NIFTY SUPPORT COMES AROUND 6650, BREAKDOWN BELOW THE SUPPORT MAY LEAD TO A
DEEPER CORRECTION.
1. Consolidation continues in BANK NIFTY. Prices are now trading near its short term support at 12800. Below this a strong support comes at 12500. The zone 12500-12800 is a very strong support zone for Bank Nifty. A close below 12500 may suggest us that the Bank Index may see a deeper decline. As of now trend is up and we should look to buy when this consolidation gets over.
· 2. CNX IT
saw an up move of Friday and prices closed near its short term resistance at
9400. A breakout above this resistance may give us a buying opportunity in IT
Stocks. Strong support comes at 9200 in CNX IT.
3. OIL
sector is consolidating at the top and prices are finding support. We may
see an up move in this sector. Look to buy the out performer in this sector.
Buying opportunity comes in BPCL, GAIL, HINDPETRO and ONGC in this sector.
Corporate and Economic News
- MCX Stock Exchange (MCX-SX) has raised Rs 60 crore through rights issue, less than one-third of the targeted amount.
- Tata Power has raised nearly Rs 2,000 crore by selling shares to existing shareholders for which it received nearly double the required bids.
