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Stock markets continued post election result consolidation that began after 16th May. Week begun on a positive note and all eyes were set on the RBI policy that was to be declared on Tuesday 3rd June. Markets reacted on a positive direction as the credit policy declared was at par to the expectations of the investors. The RBI kept the repo rate unchanged at 8% and the Cash Reserve Ratio unchanged at 4%. Good news for markets to cheer from RBI'S credit policy was statutory liquidity ratio which was reduced by 50 basis points to 22.5% this will help inject liquidity, paving the way for credit growth revival. On the last day of weekly trading session Nifty June Fut was trading with a higher note tracking firm global cues. Nifty June Fut closed at 7598
Nifty June Future is further looking bullish on chart, as mentioned in our previous report that every 20-30 point’s dip in Nifty is buy. We suggest traders to adopt same strategy again.
Currently Nifty is hovering around 7550-7600 levels , if it manages to cross its major resistance of 7600 further upside movement can be expected and nifty June fut can test levels of 7695 and 7800. On lower side major support level is at 7500 if this level is breached 7400 can be tested.
Stocks to watch:
IFCI Fut BUY- The stock has recently witnessed a corrective move and now is again trading with positive sentiments above its 50 & 200 days moving average with and RSI of 59 on intraday charts thus trend continuation can be expected, If stock manages to sustain near its crucial level of 41.55 fresh buying can be made for tgts of 42.65 with the strict SL order at 40.95
CADILA HEALTHCARE EQ-The major trend of the stock is bullish, after showing correction from highs it is now accumulating below its resistance level of 940. It is likely to continue its bull run with the crossing of its resistance level. It is trading with the RSI of 45 which indication strength for buying in the stock. Traders can initiate long position in the stock above the resistance level of 940 for the target of 975 and 1010 ; with the strict stop loss of 905.
By Vivek Gupta, Director Research, CapitalVia Global Research Limited