Published on 28/Nov/2014 12:18 PM | Source: R K Global
Biased remain positive and market likely to move up - R K Global
Below is the views on Markets Mr. Uday Dubey , R K Global
On the Global front, U.S. stock benchmarks climbed to records as the Standard & Poor’s 500 Index posted fifth weekly gain as optimism in the global economy grew after central banks in China and Europe signaled additional stimulus measures. China's central bank made its first interest rate cut in more than two years. We believe additional stimulus news likely to fuel rally further. At the home, after trading in a range for last ten days market suddenly broke out last Friday and made a new high and Nifty closed at all time high at 8492.40 just 8 points away from physiological level of 8500.FII remains net buyer again and bought Rs.271.54 (Prov) throughout the weak and DII remains net seller of Rs. 732.33. However, after selling throughout the months DII turned net buyer in last two days which supported the extended rally. We at RKG continued to believe market likely to do well going ahead and Nifty might move towards 8550 and 8700 due to some short covering and due to increase in liquidity.
Going ahead we believe winter session of Parliament that begins Monday has some serious legislative business at hand. There are 67 bills pending before Parliament of which the Factories (Amendment) Bill, 2014, the Railways (Amendment) Bill, 2014 and the Tribunals, Appellate Tribunals and Other Authorities (Conditions of Service) Bill, 2014. The Insurance (Laws) Amendment Bill, 2008 will are important for the market. Further, discussion on GST and labor reforms will be important for market direction. Further, any action for boost in export or curb gold important will also be important for the market which we don’t think will happen next week. However, going ahead it can’t be ruled out.
We believe stocks to remain volatile due to F&O expiry. However, biased remain positive and market likely to move up. We recommend traders to remain on the long side and add position on dips. We believe 8200-8350 likely to act as good support and 8550-8700 is next big resistance. We might see some pullbacks in Commodity related shares due to china rate cut and monetary infusion. We continued to like Private banks and capital good and selected Pharma for mid to long term.
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