Weakness prevailed on the bourses for the second consecutive session today, 6 November 2013. A decision by State Bank of India (SBI), to raise lending rates by 20 basis points hurt investor sentiment adversely as borrowing costs will rise for the corporate sector. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. IT stocks gained after US based IT services firm Cognizant Technology Solutions Corp, raised its full-year forecast for both profit and revenue at the time of announcing its Q3 September 2013 results on Tuesday.
We are seeing more strong negative cues as FII's have decreased buying and DII are selling more which is the biggest factor for the market to come below key support level of 6240 level. I was expecting Nifty to close above 6240, but it did not happen and infact closed very weak and the next support area is 6180 which is very strong as it is 61.8% retrenchment levels and below this we could go back to 6140 levels which is a very strong area and on the higher level if Nifty can trade above 6240 for 30 mins we could see it going to 6280 as next resistance. The short, Medium and long term up trend is still intact till it breaks key support levels, but for very short term we are weak.
For the day Nifty could open flat to bit negative and it is key it should not go below 6210and trading below this levels for 15 - 30 mins and we could see nifty going down to 6195 and 6180 and above 6135 for 15 mins we could see it going up to 6250 and 6260. IT,FMCG and Pharma could so well and Banking may continue to underperfom for the day.
Pivot Levels for stocks of the day
For exact levels to trade above securities contact vijaykumarrao.invest@gmail.com
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