SENSEX 16846.83 +363.38
NIFTY 5050.15
+113.30
USD/INR 0051.38 +00.07
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UPDATEDTIME 09.28 PM 02 DECEMBER 2011
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The Bombay
Stock Exchange's Sensex extended its wining streak for third straight session
aided by positive sentiments across global markets after the six major central
banks coordinated to offer cheaper loans to European banks. China's decision to
cut its reserve requirement ratio for the first time since 2008 and rumours of
possible CRR cut back home also provided enough support for the bulls to rally
close to important resistance levels.
According to analysts, the benchmarks might be close to higher end of the trading range in this pull-back rally and chances are that some correction would be on the cards.
I am firmly of the opinion that there is not enough armoury for the markets to rally past 5200 mark. The biggest hurdle still seems to be the valuations. Even for FY13, where the consensus Nifty EPS growth is 15%-16%, people are sounding warning bells of GDP slipping below 7%.
For FY13, the EPS growth could slow down to around 10% to 12% or some are even talking below 10% and even I am of that opinion. At 10-12%, I do not think it inspires a real bull run or to cause for a bull market.
I still feel that markets probably will not cross those barriers and probably it will still remain vulnerable to a reasonable downside.
Meanwhile, the Sensex witnessed its best weekly gains in the last two and half years by rallying around 1100 points led by gains in Hindalco Industries, Tata Steel and Tata Motors. The most favoured sectoral indices were metals and auto space.
For the day, the Sensex ended at 16846.83, up 363.38 points or 2.20 per cent. The 30-share index touched intraday high of 16888.84 and low of 16428.66.
The National Stock Exchange's Nifty closed at 5050.15, up 113.30 points or 2.29 per cent. The broader index touched a high of 5062.55 and low of 4918.40 in trade today.
We tried to break out at 5200, we failed. We tried to break down from 4700 we failed again. You are still in that range and this range can continue for many months. So traders need to protect their capital while this happens.
It is very fancy to give targets of 4000-4200 and on the upside 5600. But it is a ranging market and you need to use different strategies to deal with a ranging market. So instead of developing directional views we will have to trade the range for whatever it is worth and then wait.
We are just jumping at the same spot. Every two weeks we visit 5000 either from the upside or from the downside and views tend to change. It is much better to have sideways view. Probably for all you know the market is bottoming out while it is doing all this up and down.
BSE Midcap Index was up 1.43 per cent and BSE Smallcap Index moved 1.08 per cent higher.
According to analysts, the benchmarks might be close to higher end of the trading range in this pull-back rally and chances are that some correction would be on the cards.
I am firmly of the opinion that there is not enough armoury for the markets to rally past 5200 mark. The biggest hurdle still seems to be the valuations. Even for FY13, where the consensus Nifty EPS growth is 15%-16%, people are sounding warning bells of GDP slipping below 7%.
For FY13, the EPS growth could slow down to around 10% to 12% or some are even talking below 10% and even I am of that opinion. At 10-12%, I do not think it inspires a real bull run or to cause for a bull market.
I still feel that markets probably will not cross those barriers and probably it will still remain vulnerable to a reasonable downside.
Meanwhile, the Sensex witnessed its best weekly gains in the last two and half years by rallying around 1100 points led by gains in Hindalco Industries, Tata Steel and Tata Motors. The most favoured sectoral indices were metals and auto space.
For the day, the Sensex ended at 16846.83, up 363.38 points or 2.20 per cent. The 30-share index touched intraday high of 16888.84 and low of 16428.66.
The National Stock Exchange's Nifty closed at 5050.15, up 113.30 points or 2.29 per cent. The broader index touched a high of 5062.55 and low of 4918.40 in trade today.
We tried to break out at 5200, we failed. We tried to break down from 4700 we failed again. You are still in that range and this range can continue for many months. So traders need to protect their capital while this happens.
It is very fancy to give targets of 4000-4200 and on the upside 5600. But it is a ranging market and you need to use different strategies to deal with a ranging market. So instead of developing directional views we will have to trade the range for whatever it is worth and then wait.
We are just jumping at the same spot. Every two weeks we visit 5000 either from the upside or from the downside and views tend to change. It is much better to have sideways view. Probably for all you know the market is bottoming out while it is doing all this up and down.
BSE Midcap Index was up 1.43 per cent and BSE Smallcap Index moved 1.08 per cent higher.
Amongst the
BSE sectoral indices, BSE Bankex moved 3.26 per cent higher, BSE Power Index
gained 3.04 per cent and BSE Metal Index moved up 2.49 per cent.
Tata Power (6.30%), Tata Motors (4.57%), Tata Steel (4.04%), Sterlite Industries (3.79%) and State Bank of India (3.70%) were the top Sensex performers.
Hero MotoCorp (-0.30%) was the only index loser.
Market breadth was positive on the BSE with 1757 gainers against 1030 losers.
The European markets were witnessing a rally ahead of US jobs data and German Chancellor Angela Merkel's parliamentary speech. FTSE 100 was up 1.57 per cent, DAX gained 1.59 per cent and CAC 40 surged 1.67 per cent higher.
Tata Power (6.30%), Tata Motors (4.57%), Tata Steel (4.04%), Sterlite Industries (3.79%) and State Bank of India (3.70%) were the top Sensex performers.
Hero MotoCorp (-0.30%) was the only index loser.
Market breadth was positive on the BSE with 1757 gainers against 1030 losers.
The European markets were witnessing a rally ahead of US jobs data and German Chancellor Angela Merkel's parliamentary speech. FTSE 100 was up 1.57 per cent, DAX gained 1.59 per cent and CAC 40 surged 1.67 per cent higher.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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