MONTHLY SNAPSHOT - NIFTY 50

Page 1

December Snapshot – Nifty 50

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CONTENTS Latest Updates Technical Analysis S&P CNX Nifty Bank Nifty Future BSE Sensex

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Latest Updates 02nd Nov – Allahabad Bank has posted a net profit of Rs 488 crore for the quarter ended September 30, 2011 as compared to Rs 402.6 crore for the quarter ended September 30, 2010. Total Income has increased from Rs 2981.66 crore for the quarter ended September 30, 2010 to Rs 4202.54 crore for the quarter ended September 30, 2011.

08th Nov TTK Healthcare has reported a sales turnover of Rs 86.50 crore and a net Profit of Rs 3.42 crore for the quarter ended Sep '11. For the quarter ended Sep 2010 the sales turnover was Rs 75.93 crore and net profit was Rs 3.72 cr.

09th Nov Pharmaceutical firm Ranbaxy Labs has reported a consolidated net loss of Rs 465 crore in the third quarter of 2011 as against Rs 308 crore in the corresponding quarter of last fiscal. The loss was due to the forex loss of Rs 400 crore in the quarter.

10th Nov – Hindalco Industries Ltd, recorded a 16% rise in its standalone net profit for the July-Sept quarter at Rs 503 crore Year-on-Year. Net sales for the period also climbed 7% to Rs 6,272 crore.

11th Nov – Adani Power has reported a net profit of Rs 177 crore in the second quarter of FY12, a growth of 40.5% as compared to Rs 126 crore in the corresponding quarter of last fiscal. Net sales too jumped 171.4% to Rs 1,072 crore from Rs 395 crore during the same period.

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14th Nov Sun Pharmaceutical has announced a 19% increase in its net profit to Rs 598 crore for the September quarter Year-on-Year on the back of robust performance across its business. The drug maker’s sales for the quarter also grew 42% to Rs 1,894 crore versus Rs 1,331.42 crore. th

16 Nov –

Tata Motors has reported a sales turnover of Rs 12,953.80 crore and a net profit of Rs 102.02 crore for the quarter ended Sep '11. For the quarter ended Sep 2010 the sales turnover was Rs 11,504.07 crore and net profit was Rs 432.70 crore.

17th Nov – Phillips Carbon Black has reported a sales turnover of Rs 563.86 crore and a net profit of Rs 20.83 crore for the quarter ended Sep '11. For the quarter ended Sep 2010 the sales turnover was Rs 414.80 crore and net profit was Rs 24.27 crore.

19th NovHMT has reported a sales turnover of Rs 37.81 crore and a net loss of Rs 25.74 crore for the quarter ended Sep '11. For the quarter ended Sep 2010 the sales turnover was Rs 48.52 crore and net loss was Rs 20.62 crore.

28th Nov – Tractor maker Escorts ' consolidated net profit for 2010-11 [October-September] declined 4% year-on-year to Rs 126.39 crore, on the back of rising cost of raw materials and high interest charges among other things.

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TECHNICAL VIEW Moving averages Moving Averages

20 Day

50 Day

100 Day

200 Day

Daily Weekly

4992 5100

5022 5396

5102 5415

5345 4775

Fibonacci retracement levels (Weekly) SCRIPT

0.0%

23.6%

38.2%

50.0%

61.8%

100.0%

NIFTY

6336

5377

4777

4300

3815

2252

Weekly Pivot SCRIPT

R4

R3

R2

R1

P

S1

S2

S3

S4

NIFTY

5879

5571

5263

5157

4955

4849

4647

4339

4031

Monthly Pivot SCRIPT

R4

R3

R2

R1

P

S1

S2

S3

S4

NIFTY

7313

6552

5791

5420

5030

4659

4269

3508

2747

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Weekly Analysis :- S&P CNX NIFTY

If we look at a broader chart of Nifty, we can see it is working quite well with retracement of its rally started from 2252 (Nov 2008) to its peak at 6336 (Nov 2010). Nifty this month is expected to be sustain the consolidation phase or may go up due to following reasons: Nifty currently has resisted the retracement level of 38.2% and has given a closing above this retracement and it may further extend uptrend to test the retracement level of 23.6% which is around 5400.  This week it has made closing above its 200 weeks moving average hence that level would act as an important support level which may help Nifty to go up.  Nifty currently is following an downward channel making lower top & lower bottoms & has resist its support line & is expected now to go up from this level to make its new lower top i.e. near its upward resistance line which is at around 5300-5350.

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Nifty gave a closing above its 200 weeks moving average and if it trades above it; then we can see further short-term uptrend. Also it has given closing above its 38.2% retracement hence may see an upward momentum to test its 23.6% retracement level which at 5400 where it could resist its upward resistance line. Though, If Nifty is not be able to sustain the level of 4800-4700 and gave closing below its 38.2% retracement level in the coming week, then we can see a short term downward rally to 4400-4500. Moreover it may range in between 4700-5300 this month.

Bank Nifty Moving averages Moving Averages

21 Day

50 Day

100 Day

200 Day

Daily Weekly

9055 9720

9330 10488

9821 10401

10426 8436

Fibonacci retracement levels (Weekly) SCRIPT

0.0%

23.6%

38.2%

50.0%

61.8%

100.0%

BANK NIFTY

13320

10945

9505

8305

7150

3290

Weekly Pivot SCRIPT

R4

BANK NIFTY 11084

R3

R2

R1

P

S1

S2

S3

S4

10374

9664

9418

8954

8708

8244

7534

6824

Monthly Pivot SCRIPT

R4

R3

R2

R1

P

S1

S2

S3

S4

BANK NIFTY

14870

12976

11082

10144

9188

8250

7294

5400

3503

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Weekly Analysis

Here we had applied retracement on weekly chart of Bank Nifty started from 3290 (Mar 2009) to its peak at 13320 (Nov 2010). Bank Nifty this month is expected to sustain the consolidation phase or may be a positive bias due to following reasons : Bank Nifty after breaking its retracement level of 38.2% and has tested the level of 50% retracement and has take support of it, hence now is expected to test back the retracement level of 38.2%  Bank Nifty has also tested its 200 weeks moving average and has given the closing above that hence is expected to go up from this level.  Bank Nifty currently is following an downward channel making lower top & lower bottoms has test its support level which was around 8500 and now is ready to test its upward resistance line to make its new lower top.  Though RBI actions in coming month and its credit policy will be keenly watched and any news of rate hike will affect upward momentum and may see further downward pressure.

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Bank Nifty this month has given closing above its 50% retracement level and in the coming weeks we can see upside expecting to trade above 50% retracement to test its 38.2% retracement which is around 9500; then. But, If Bank Nifty would not be able to sustain here and trades below 8400-8200 in the coming weeks then can see a short term downfall to 8100-7800. Bank Nifty is expected to trade in the range of 8150-9850.

BSE Sensex Moving averages Moving Averages

21 Day

50 Day

100 Day

200 Day

Daily Weekly

16625 16990

16702 17986

16995 18054

17796 15915

Fibonacci retracement levels (Weekly) SCRIPT

0.0%

23.6%

38.2%

50.0%

61.8%

100.0%

SENSEX

21108

17980

15980

14410

12810

10870

Weekly Pivot SCRIPT

R4

R3

R2

R1

P

S1

S2

S3

S4

SENSEX

19525

18486

17447

16967

16408

15928

15369

14330

13291

Monthly Pivot SCRIPT

R4

R3

R2

R1

P

S1

S2

S3

S4

SENSEX

23712

21379

19046

17947

16713

15614

14380

12047

9714

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Weekly Analysis

If we look at a broader chart of Sensex, we can see it is working quite well with retracement of its rally started from 7698 (Nov 2008) to its peak at 21108 (Nov 2010). Sensex this month is expected to be sustain the consolidation phase or may go up due to following reasons: This week it has taken support of its 200 weeks moving average hence that level would act as an important support level and may go up.  Sensex has breached the retracement level of 38.2% and has given a closing very well above this retracement and it may further extend uptrend to test the retracement level of 23.6% which is around 18000.  Sensex currently is following an downward channel making lower top & lower bottoms & has resist its support line & is expected now to go up from this level to make its new lower top i.e. near its upward resistance line which is at around 17500-18000.

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Last week Sensex has given a closing above its 200 weeks moving average which will act as major support and in near term may sustain it and continue its upward momentum to test the retracement level of 23.6% which comes around 18000. But, If Sensex would not be able to sustain the level of 16300-15900 and gave closing below its 38.2% retracement level in the coming week, and then we can see a short term downward rally to 15300-15000. Sensex may range in between 1588-17800 this month.

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