GOLDEN RULES FOR TRADING

Indian Markets Outlook for the week - 24.06.2013 to 28.06.2013

www.rupeedesk.in

Market participants expect trade to be volatile next week ahead of the June futures and options expiry, due Thursday. However, the bias for the market is slightly positive as indices appear oversold. Most market participants expect the National Stock Exchange's 50-share Nifty to find support in the 5550-5600 range, while they see the index facing resistance in the 5750-5800 bands. Since we have already broken the crucial support of 5700 levels, on the downside we are expecting levels of 5550. Any recovery towards 5700 levels should be seen as an opportunity to reduce long positions. Markets are likely to remain very volatile as India VIX (volatility index) is rising, which is an indication of
the rising volatility in the market. Within sectors, banks are likely to remain weak. Although a minor pullback is possible, it is unlikely to sustain. We expect Bank Nifty to breach the level of 10900-11100 points. Among stocks, Ranbaxy Laboratories is likely to be in focus next week as the Supreme Court will, on Jun 24, hear the public interest litigation seeking directions to cancel the manufacturing licence issued to the company for allegedly selling adulterated medicines. Jindal Steel & Power, which tested a 52-week low of 195.90 rupees intraday, is also seen weak, due to the controversy surrounding the stock. The Central Bureau of Investigation has sent a notice to the company to join the probe into the coal mines allotment scam.