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Market Outlook

Monday, October 12, 2009 Leave a comment Go to comments

NIFTY was on a corrective path last week and ignored all the positive triggers from the global markets. Even the bonus news of RIL failed to enthuse the markets. One might have wondered as to why is that happenning.

Bull markets are usually sustained by sector rotation. so the rally started with IT and auto and then joined by pharma and banks. Now the next in line should have been likes of RIL and Bharati/RCOM but the baton was never passed to them. Infact, telecom stocks pulled out of this bull run and RIL is struggling with negative sentiment of cases with RNRL on gas issues. On top of that, profit booking has started to kick into Banking, IT and auto sectors.

So the net result is a temporary stalling of this upward journey.

My sense is that the rally will now be “stock specific” especially in the midcap and small cap space. So we might observe that while broader markets not making big moves, individual stocks continuing to rocket.

The current range for the markets is 4800-5100 and it might be good if we spend some time here. It is a little difficult to say if we shall hit 4800 but chances will brighten if we slip below 4900.

I am keeping a close eye on some real estate stocks and some of them might actually pick up in the coming weeks.FMCG sector is also a decent bet for the coming weeks. Infact, I had picked ITC for my clients last week and the stock has done well for short term traders.

Categories: NIFTY Strategy
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