NIFTY OUTLOOK & FREE NIFTY TIPS FOR 7 FEB 2017

“BUY WOCKPHARMA ABOVE 720 TGT 735/745 SL 700”

“SELL WOCKPHARMA BELOW 699 TGT 685/675 SL 720”

The Budget-induced optimism got a leg to stand on as the Sensex today pushed higher for the fourth day by scoring 199 points to close at 28439 a 4-month high after hopes built up that RBI might go in for a rate cut at the Wednesday’s policy meet. The NSE Nifty retook the crucial 8,800-mark today. Benchmark indices ended at 5-month closing highs on Monday, with the Sensex rising 198 points to 28439. The Nifty gained 60.10 points at 8801. We have looked at the three year data of Sensex and Nifty performance a week after the budget announcement. Looking at the trend, the markets have not disappointed atleast for a week post the Budget since 2014.

At its last policy review in December, RBI in a surprise move had decided to leave rates unchanged, but this time a lower retail inflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative. Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues. We are seeing continuation of rally in the rate sensitive sectors led by reality, banks and FMCG which were also supported by Budget related sops. Nifty was hovering around 8800 level for whole day and managed to close at 8801On the upside, the Nifty has significant resistances at 8850 and 8870 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 8900 and 9000 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 8700 and 8650.

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Supports: 8700 and 8650

Resistances: 8850 and 8900