Nifty Market Outlook 25-june-2015

Nifty levels:  

Nifty spot close @8360

Nifty future close @8333

Fantastic recovery from lower level, buying opportunity in leading sectors of stock market, banking, automobile, infrastructure realty etc, we have seen 8400 level today. Slight profit booking is obvious keep buying on dips.

Bank Nifty levels:  

Bank nifty spot close @18304

Bank nifty future close @18304

Good recovery from lower level buys above 17900 for the target of 18500-18600.

lMARKET COMMENTERY

 A sudden slide in late trade pushed key benchmark indices into the red from green. The sudden slide in late trade materialized after benchmark indices extended intraday gains in mid-afternoon trade. The trigger for the sudden slide in late trade was media reports that Greece's creditors have rejected the European nation's latest reform proposals. European stocks dropped after media reports suggested that Greece's creditors have not accepted the European nation's latest reform proposals. PSU bank stocks, steel shares and cement stocks dropped. The market breadth indicating the overall health of the market turned negative from positive in late trade. The barometer index, the S&P BSE Sensex, was provisionally off 143.47 points or 0.52% to 27,660.90. The BSE Small-Cap and Mid-Cap indices, both, slipped into the red from green in late trade.

STOCK BUZZ

1. Coal India reversed diretion after hitting 52-week high in intraday trade. The stock was off 1.12% at Rs 410.50. The stock hit a high of Rs 421.35 in intraday trade, which is a 52-week high for the counter. The stock hit a low of Rs 408.50 in intraday trade.

2. Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock. The stock was off 1.72% at Rs 544.10. The stock hit a high of Rs 552 and a low of Rs 542 in intraday trade. The foreign brokerage reportedly said that growth challenges in Tech Mahindra's telecom industry vertical and its weak enterprise business will lead to lower earnings. The company's margins will surprise the consensus negatively going ahead, the brokerage added.

HOT PURSUIT

1. Meanwhile, concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the June-September southwest monsoon season. For the country as a whole, the cumulative rainfall during this year's monsoon season was 21% above the Long Period Average (LPA) until 22 June 2015. Region wise, the southwest monsoon was 45% above the LPA in Central India, 35% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 22 June 2015.

2. Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015. Four members advocated a cut in repo rate by 25 basis points; two members suggested a 50 basis points reduction and one member proposed a reduction by 75 basis points. One of these members also recommended that the SLR should also be reduced by 50 basis points. It may be recalled that the RBI cut its benchmark lending rate viz. the repo rate by 25 basis points after the 2 June 2015 policy review.

OPTION STRATEGY

1. In today’s session we have seen call writing in nifty 8400 call so we can consider this as a strong resistance.

2. RELIANCE 1000 & 1020 CALLS were so active, stock is really in bullish move more rally is expected up to 1020.

3. ZEEL 340 calls were in action today, stock showed us gain from lower level, more buying above 340.

STOCKS TO WATCH

CIPLA:

Buy CIPLA above 620245 stock may show 660-670 in coming days.

AMBUJA:

Buy AMBUJA CEMENT above 231, stock may show 240/250 level in coming days. Below 231 major supports will be 223.

SBIN:

Buy SBIN as remain above 263 stock may show 280/290 level in coming days, below 263 major support 254.

TOP PICKS OF THE DAY

1. BUY ONGC ABOVE….? TGT…..?STOP LOSS……?

2. BUY GAIL ABOVE…..?...TARGET….?..STOPLOSS…?

3. SELL CANBK BELOW….? STOCK MAY SHOW 295/290 LEVEL IN COMING DAYS WITH STOP LOSS…?