Monday, November 28, 2011

EOD Analysis for 28th November 2011 and Outlook for 29th November 2011

Positive global cues and gap-ups across the board on Nifty, FTSE, DAX and Banks led the way for Nifty's rise today. Concerns still remain that the OI in Nifty futures was just 24.5 million despite such a strong rise across the board and Euro-Dollar is still well below 1.34 levels. VIX dropped more than 2 points which is a positive sign at least for the ultra-short term.

More short-covering expected on Dow as well and next targets for DAX is around 5700-odd levels before heading for the next leg down. On FTSE, we may see a leg up to around 5300-5350 before heading to the next leg down and Dow towards 11650 odd levels.

Markets are still not out of the woods and the threat of retesting 4640 and going below 4600 is very real as we chug along Dec-Jan series. On individual counters, the strong bounce in Hindalco was impressive, and DLF, Tata Motors, HDFC were strong in their bounces too.

Unless volumes rise by another 15% or so, the rise can be attributed to short-covering; Critical resistances lie at 4911-4944-4994 and critical supports are 4720-4751-4794-4808. Expect some profit booking to come through in counters that had more than expected bouncebacks [apart from banks that rose well today, major benchmark index counters rose by 1% to 2% only showing stock-specific action on upside]

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