Today Nifty Fut (June)
opened cautiously and gained momentum after Europe market opens
and the latest pre-voting poll indicated 48% for "Leave" against
52% for "Remain". Another betting portal also confirmed that
there is 74% probability of the "Bremain".
In any way, this"Brexit"
episode may encourage some other EU nations to go for such
referendum in future and this may be marked as a precedent.
NF made a low of around 8190
after opening at 8206 and surged to the high of 8307 before
settling the day around 8289.
Looking ahead, NF has to
sustain over 8335-8375 zone for 8410-8510 in the scenario of
"Bremain".
On the other side,
sustaining below 8260, NF will loose some of its strength and
will fall towards 8190-8140 and below that 8060-7980 &
7870-7780-7695 area in the "horror" scenario of "Brexit".
One point is that market is
not prepared for "Brexit" and already discounted the likely
scenario of "Bremain" by a large extent. So, it may be another
example of "Buy the rumour and sell the news" event.
Also the bond market rallied
today on the back of good demand from corporate buyers and this
also supported our market.
At 8400-8500 Nifty in the
"Bremain" scenario, PE of our market will be well above 23 and
historically 23-24 PE always invite heavy long profit booking.
Thus, we should maintain
technical level more closely to avoid buying around the recent
highest point.
Some of the scrips, which
moved the market today:
1. Tata Motors gained in the
hope of "Bremain".
2. Yes bank gained to life
time high today after fund raising plan (QIP).
3. Sun Pharma gained after
report of "buy back" of its shares.
4. RCOM gained after ICRA
upgraded its debt ratings and imminent merger talks with Aircel.
The company will also start 4G services shortly by using R-Jio's
network.
5. Lupin gained after it got
some ANDA approval from US FDA.
6. NTPC fall today after
reports that it will offer 5% of its stake to its employees at
5% discount (which may dilute its EPS).
No comments:
Post a Comment