Stock Market Updates For March 7th, 2014

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Key Benchmark indices at life time closing high – Positive sentiments to prevail for Overall Market.
Yesterday , Indian equity market hit life time high mainly led by buying from FII. FII were buyers to the tune of ~ Rs 12.7 b in yesterday trade.
Although , the markets are trading at life time high , valuations are very comfortable . Nifty’s is trading at P/E of 13x FY15E ESP.

Short term trading ideas:

Oil and gas: HP-CL, CLUB, OIL India and CONG
Capital Goods: Volt’s, Compton Gr-eaves
Real Estate: Oberon Realty, Godfree Properties
Banks – Acquisition targets like South Indian Bank, DCB, Karnataka and Private Banks like Yes Bank, ICICI Bank
Infrastructure: CC and Gujarat Pavlova Port
Power: PISCES
Auto: Marti and Surabaja Auto

For defensive investors:

FM-CG: TIC and Pidilite
IT: Tech Mahindra and Geometric
Pharmacy: Sun Pharmacy and Dr Reddy

Market Trend

NIFTY –CMP 6401

Synopsis
Nifty opened with a positive bias & witnessed buying on dipsleading the Index to finally close 1.15% positive.
Going forward, Till Nifty holds 6380, it can move upto 6470-6490 zone where it will face high resistance. Index RSI isapproaching 70 which is a sign of overbought condition.
If Nifty breaks 6380 support zone, then 6310-6320 would beretested.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

Bank Nifty – CMP – 11278

Synopsis
Bank Nifty opened with a positive bias & witnessed buying ondips leading the Index to finally close 1.6% positive.
Going forward, till it holds 11,220, it can move upto 11,550zone where it will face high resistance.
If breaks & sustains below 11,220, would fall upto 10800-10850. Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

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