02-12-14 MARKET TECHNICAL VIEW:

MARKET TREND - ROARING STOCKS:

Crude prices are much encourage to Indian Economy and Common Public also able to perceive the advantage with reduced oil and gas prices for which we have to thank Gulf Countries. Nifty trying to get consolidate at 8500 level, which became center point for Bulls and Bears. Bulls are trying to take the market to 8700 level and Bears are trying to take down to 8300 level from here.   We have to see how strongly they can pull the Nifty after RBI's announcement.  Even though, interest rate reduction is not so important in this juncture, sentimentally many are looking for it and Govt. also wants to give boosting dose in addition to favorable economic conditions to push India in Most Favorable Countries slot.  As this is an opportunity to strengthen our economy, decrease of CRR may be other option to RBI to extend moral support to Finance Ministry and Financial Institutions and there in pass the advantage to Corporates in this improved  inflation conditions.  At this junctures, for Indian Corporates, cash inflows are not a problem, only they need credit facility & competitiveness for their exports, which finance ministry also might be looking to bridge the trade gap.  CRR change may be right instrument to fix.

Yesterday FIIs net buyers (marginally) 55.79 cr in total derivative segment. Mostly they have made coverage exercise to their longs & short positions and hedging of positions.  FIIs have sold 14334 Index Future contracts by covering 6900longs and adding 7434 shorts for net worth of 303.64 cr.  By Index Futures OI has been increased by 534 contracts.  In Equity Segment both FIIs and DIIs are net sellers for the worth of 12.36 and 555.17cr respectively.   Market Breadth also weakened further.  PCR closed at almost neutral ie.at 0.99.   Rupee closed at 61.91 after regaining by 0.33 ps.  Derivatives active point at 8500 along with active range of 8500-8700 by increasing its base from 8300 to 8500 level.

Even though all Asian Peers are running with positive note, our SGX Nifty opened and running with negative bias, as FIIs are expecting statuesque stand from RBI.    Nifty may play in the range of 8530 & 8480 level.

NIFTY SPOT LEVELS:

Pivot: 8575

Resistance: 8604/8663/8682

Support: 8526/8496/8448

NIFTY FnO BAN: NIL

STOCKS TO WATCH (POS/DAY BASED ON LEVELS GIVEN) 

RELIANCE : SELL < 970 TRG 950/938 SL 884 (PE may be better option)

CROMPTION: SELL < 189 TRG 184 SL 191

NCC: SELL < 65 TRG 62.50 SL 67

TITAN: BUY > 385 TRG 390/400 SL375

UFLEX: BUY > 168 TRG 170/172 SL 167