Pre-Market & Weekly News-Letter for September 26th, 2011 by GreatTips

 

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DATE:26-09-2011

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The Day Ahead

Nifty (Spot) Support for the day exists at 4850-4810 and Resistance to the up-move is at around 4890-4930. Global cues to dictate the trend. Stay sideline till clarity.

 

In terms of outlook for the next week, market is likely to remain volatile because of derivative series expiry. The Nifty closes on a negative note and is now expected to continue with the downtrend in the short term. The Nifty is likely to take support around 4810 levels while resistance will be seen around 4960 levels.

Market Out-Look

Technically, the NSE Nifty witnessed a triangle break down on the daily charts and closed below the triangle for the second consecutive session. However, on the hourly chart, the Nifty has managed to close above the support trendline.

 

Globally, Asian markets ended in the red but indices in China, Australia and Hong Kong managed to recover from day’s low. The European stocks opened with smart gains, but could not sustain the momentum. Investors were jittery as policymakers in the US and Europe struggled to stem mounting fears of double-dip recession.

 

“We are in a really tough global situation with the US and Europe at the center of the turbulence. It may take a while before the external conditions improve considerably. Emerging markets like India and China are better placed but cannot remain insulated from the overseas mess. So, be prepared for the worst case scenario, especially in Europe, and don’t try and be adventurous. Although investing in equities at this juncture is not prudent given the risks involved, medium to long-term investors could start looking at picking high-quality stocks.

The Day It Was

The Indian stock indices extended their losing streak to a third straight trading session, capping a tumultuous week with heavy losses. Benchmark indices witnessed wild intraday gyrations with the NSE Nifty swinging  almost 100 points while the BSE Sensex fluctuating nearly 300 points in intra-day. Finally, the BSE Sensex ended at 16,162, dropping 199 points. It had earlier touched a day’s high of 16,368 and a day’s low of 16,052. It opened at 16,222. The NSE Nifty closed at 4,867, down 56 points.

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