Market outlook report - June 23 to 27, 2014 - CapitalVia Global Research

Mr. Vivek Gupta - Director Research, CapitalVia Global Research Limited

Markets opened on a negative note as Asian shares got off on the back foot on Monday, as crude extended gains and tested nine-month highs on fears the insurgency in Iraq could worsen and affect oil exports. Brent rose about 0.6% to $113.20 per barrel, after touching $114.69 , its highest since September , markets continued to trade weak throughout the weekly session and closed on a negative note at 7530.85.

Overall trend of Nifty June Future is still bullish on chart, The negative closing on charts this week is indicative of some short term correction in Nifty june fut, if Nifty jun fut breaches its major support level of 7510 a steep rally can be expected to the levels of 7445 and 7370. where as on upside important resistance zone to look after is at 7680- 7715 crossing of this zone cal take Nifty to further higher levels of 7835 & 7900 in near term.

Stocks to watch on:

ESSAR OIL IN NSE CASH BUY Overall trend of the stock is bullish, it is consolidating below its resistance level of 110.50 from the last few trading session. Also it is trading above its 50 and 200 days moving averages. It is poised to move upside with the crossing of its resistance level, One may initiate the long position in the stock above the resistance level for the target of 116 and 121 with the strict stop loss of 105.

ECLERX IN NSE CASH BUY- Overall trend of the stock is bullish.It is trading in range after a recent corrective movement, also it is sustaining below the trend line and below the resistance level of 1210. It is likely to continue its northward journey with the crossing of its resistance level. Traders can get the target of 1295 and 1365 above the resistance level, for which one should keep stop loss of 1140.

Source : Equity Bulls

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