Sell on rise be­low Nifty 10400

Money Times - - Market Outlook | Stock Analysis - By Ro­han Nalavade

As in­di­cated in the last is­sue, the Nifty tested the 10270 level last week. It closed be­low 10350 last week and will gain strength only above 10400. Be­low 10300, it could test the 10250-10200 lev­els. The Nifty made a weekly low last week and its weekly close is be­low the week be­fore last’s low of 10324. Stocks be­long­ing to the auto, pharma, pri­vate banks and oil com­pa­nies (BPCL and Re­liance In­dus­tries) slipped last week and have started show­ing weak­ness. Global mar­kets are also tired and some pos­i­tive news is needed to trig­ger the mar­ket. Any bad news could un­leash sell­ing in the mar­ket. Crude oil prices are on the rise and there­fore, petrol and diesel prices will rise boost­ing in­fla­tion. Hence, the RBI may not cut in­ter­est rates fur­ther. The US Fed­eral meet in­di­cated a rate hike in De­cem­ber. On the do­mes­tic front, Gu­jarat elec­tions will be held in De­cem­ber. The out­come of this elec­tion will have a huge im­pact on the mar­kets for the short-term and we may see a 1,000+ point swing in the Nifty in De­cem­ber.

Among stocks,

Col­gate-Pal­mo­live (In­dia) looks good above Rs.1035 for up­ward lev­els of Rs.1050-1070 (SL: Rs.1020) Hin­dalco In­dus­tries is a Sell be­low Rs.268 for down­ward lev­els of Rs.260-250 (SL: Rs.273) Re­liance In­dus­tries is a Sell be­low Rs.890 for down­ward lev­els of Rs.870-860 (SL: Rs.902) Yes Bank is a Sell be­low Rs.304 for down­ward lev­els of Rs.300-297-295 (SL: Rs.309)

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