Monday, 25 April 2016

MARKET TUMBLING.DOWN BEFORE EXPIRY

BUY MCX ABOVE 890 TGT 900/925 SL 875
The BSE Sensex ended with a loss of 159 points at 25,679. The BSE Sensex opened at 25,891 touched an intra-day high of 25,891.03 and low of 25,586. Just when you thought the market was gaining pace and might rise further, it lost momentum as investors turned cautious due to major actions in global markets.  A big positive for Maruti would be strong fourth quarter numbers with margins of over 15 percent. Midcap IT companies do not offer much at this point with expectations of a good monsoon, fast-moving goods companies (FMCG) like Bajaj Corp and Maruti will benefit. UltraTech Cement's fourth quarter earnings beat analysts' expectations on all counts Monday with standalone profit rising 10.9 percent year-on-year to Rs 681.4 crore, helped by lower tax & finance cost and better operational performance. Just when you thought the market was gaining pace and might rise further, it lost momentum as investors turned cautious due to major actions in global markets. Wednesday and that of Bank of Japan, which is scheduled to come out with money policy statement on Thursday. Among local factors, the second half of the Budget session that started today, also influenced investor sentiment. Most market experts remained hopeful. Dalal Street has reversed its lower top-lower bottom pattern to start making higher tops and higher bottoms. If this pattern is to continue, the Nifty50 should find support somewhere between 7,500 and 7,550 levels. That is a good 3-3.5 per cent correction from the current level, which should be very healthy because it would take away the excesses that have got built over the past three weeks.
Bharti Airtel, TCS, Adani Ports, Bajaj Auto and Infosys were top gainers while Reliance, Maruti, Hindalco, NTPC and ONGC were losers in the Sensex.

 



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