Market view & Stock Picks

[Prabhakar A.K]

Nifty (6220)- Nifty recovery was sharp and till 6168 doesn’t breach on lower side Nifty rally would continue till the expiry as Shorts are trapped in banking stocks. Today Nifty holding 6168 is important for rally to cross 6260 & target 6340 while below 6168 then some weakness till 6120 is possible.

Interesting facts of Sensex

Sensex made low of 7697 on 27^th October 2008 on Diwali day and post which Sensex closed highest ever on daily basis on 5^th November 2010 Diwali day is 21004.  Now 2^nd best ever close on daily basis is 20929 which is made on 29^th October which is yesterday which points that all time high 21206 & all time highest close 21004 is just days away if the rally continues.

21004 in Sensex is also highest ever weekly close.

Short Covering stock

ICICIBANK-Rs.1074, Stock is up 21% in this month and stock closed highest in 80trading days and can target Rs.1147 is the short covering rally materialize in next 2days.

The Reserve Bank’s developmental measures over the next few quarters will be built on five pillars. And RBI plans to give banks the option to pay interest on savings deposits and term deposits at intervals shorter than quarterly intervals.

Jalan panel on new bank licensing to meet on 1 November and stocks like L&TFIN, RELIANCE CAPITAL, LICHOUSING, SHIRAMTRASPORTFINANCE, and BAJAJFINANCE are on watch list.

Break-out stock

REC Rs.189, Stock has formed a triangle and above Rs.192 Stock can target Rs.216 on higher side. Stock would fail if it goes below Rs.181 which can be effectively used as Stop.

RECLTD Result on 13^th November 2013 Market Cap 18,700crs, Book Value-176 TTM Trailing 12Months EPS 41.47 and Dividend yield of 3.96% is a good investment for investor.

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A.K.Prabhakar