This week keep focus on Q4 earnings and Europe Issues
Last week Sensex lost 140 points or -0.86% to 16152.75 and Nifty lost -37 points or -0.76% to 4891 in the week ended 18-05-2012. Last week we saw that nifty was continuously sliding down from starting of week and on the last day of week on event of SBI result market bounce from new bottom and nifty closed at 4889. If we take technical view then still nifty is negative territory. If nifty close above 5050 then only we can see nifty may touch upto 5161 and more. This week keep focus on next batch of Q4 results and Greek problems. If nifty close
below 4797 for two days then if may touch to 4600 to 4500 levels. Looking to last Friday’s bounce, it looks like that nifty made its low for this month. Just keep strict sl of 4797 for your long positions.- KEEP SL IN SYSTEM NOT IN YOUR MIND.
- KEEP STRICT SL IN EVERY TRADE AND POSITIONS
- BEFORE YOU TRADE ON SYSTEM FIRST DECIDE THE SL AND THEN TRADE.
WEEKLY INDEX SUMMARY
INDEX | LAST WEEK 18-05-2012 | PREVIOUS WEEK 11-05-2012 | PERCENTAGE % (+/-) | POINTS (+/-) |
|---|---|---|---|---|
| SENSEX | 16152.75 | 16292.98 | -0.86% | -140 |
| NIFTY | 4891.45 | 4928.90 | -0.76% | -37 |
The next batch of Q4 March 2012 earnings, investment activity of foreign institutional investors (FIIs) and news flow from euro-zone will dictate near term trend on the bourses.
Among the major results, power generation major Tata Power Company announces FY 2012 results on Tuesday 22 May 2012. Power equipment major Bharat Heavy Electricals (Bhel) unveils Q4 results on Wednesday 23 May 2012. ITC, Reliance Infrastructure and BPCL unveil FY 2012 results on Friday 25 May 2012.
FMCG stocks may extend their gains as the weather department has forecast that the 2012 Southwest Monsoon will arrive in time. FMCG firms derive substantial revenue from rural sales. The India Meteorological Department (IMD) said the model suggests that the date of onset of southwest monsoon over Kerala is likely to be on 1st June with a model error of ± 4 days.
PSU OMCs and auto stocks will be in focus on buzz that petrol and diesel prices will rise soon after Parliament’s budget session ends on Tuesday, 22 May 2012. State-run oil marketing companies (PSU OMCs) sell diesel, LPG and kerosene at government controlled prices. The government has freed pricing of petrol.
Shares of importers may edge lower after recent steep slide in the rupee which has pushed the Indian currency to a record low against the dollar. A weak rupee makes imports costlier.
The investment activity of foreign institutional investors (FIIs) holds key. FIIs have bought shares worth net Rs 415.90 crore in May 2012 so far (till 17 May 2012), as per data from Securities & Exchange Board of India (Sebi). FIIs had sold shares worth net Rs 1109.10 crore in April 2012.
FIIs have bought shares worth net Rs 43257.40 crore in calendar 2012 so far (till 17 May 2012). FIIs had offloaded shares worth a net Rs 2714.20 crore in 2011.
Investors will continue to watch developments in euro-zone. Greece’s inability to form a government, which led to the country calling another election in June, has raised concerns about its ongoing membership of the euro zone and the health of the European economy. Greece has put a senior judge in charge of an emergency government to lead the nation to its second election in just over a month on June 17, which will likely determine whether it remains in the common currency area.
Moody’s Investor Service on Thursday, 17 May 2012, carried out a sweeping downgrade of 16 Spanish banks, including Banco Santander, the euro zone’s largest bank, citing a weak economy and the government’s reduced ability to support troubled lenders. All the banks’ long-term debt ratings were downgraded by at least one notch and some suffered three-notch cuts. (Data Source: Capitalmarket)
NIFTY WEEKLY CHART
NIFTY WEEKLY CHART
WEEKLY NIFTY SUPPORT 4825 AND RESISTANCE 4970-5050
NIFTY FUT. (4889)Buy above 4975 Target 5034-5098-5129
Sell below 4820 Target 4775-4747-4710
Sell below 4820 Target 4775-4747-4710
-Always Remember, put SL in your every trade.
- Weekly Levels are Closing Basis, so follow on closing time.
- Weekly Levels are Closing Basis, so follow on closing time.
Rupesh Yatesh Dalal
Head Research Department
Head Research Department
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