Key benchmark indices edged lower in choppy trade as IT major TCS' third quarter results fell short of market expectations and as private sector bank HDFC Bank reported a decline in net interest margin in Q3 December 2013. Nifty opened well and made a high of 6327 and later found profit booking made a low of 6246, but later found support at 6250 which is expected before and closed at 6270 levels. What is not convincing is FII's presence is negligible.
Short term trend
Nifty is good as long as it is above 6250 and we have seen Nifty taking support at this level on Friday. Next minor resistance is at 6305 and as ever major resistance is at 6350 and on the lower side, if Nifty stays below 6250 for two days we could see levels of 6190 and 6130. Banking is looking very weak now and without support of banking we could not see Nifty rallying upside. We major companies like Asian Paints, Ultratech, LT, HDFC and other major midcaps coming up with results we could see Nifty volatility and as RBI is coming with its policy on Jan 28th so we may some action in this week before this major event.
Overall trend is getting weaker and also we have seen selling in Mid caps and Small caps which is nothing but investors selling risky assets and it shows risk aversion getting down and so Nifty is bound to go down. China's data even though better than expected is also not supporting other markets and I am very confident the run we have seen in Metal sector is going to fade and we are going to see more pain in them. I am expecting Nifty to touch 6195 this week which is 50 DMA before any fresh move either side. Strength of Dollar is go
Intraday Trend
As indicated by other Asian markets with lot of doubts on China's growth, we are going to see weak opening by Nifty. For the day Nifty is good above 6276 for 6290 and 6310 and below 6250 we could see 6235 and 6220. Would like to watch Banks, Metals and IT sectors for the day.
Top picks for the day
My top pics for the day are Jublfood, PNB, Bajaj Auto, OBC, HindPetro,DLF and TechM. For Buy/Sell and correct levels contact vijaykumarrao.invest@gmail.com.
Pivot levels for key stocks
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