Sensex, Nifty fall as RBI and govt measures fail to cheer investors

The benchmark indices fell on Thursday as concerns over the effects of a weaker local currency and crude oil prices on the economy outweighed steps by the government and the central bank to restore investor confidence.

Most global markets, too, were down as investors digested the likelihood of more Federal Reserve interest-rate increases stretching into next year.

The Sensex declined 0.6 per cent to 36,324.17, after falling as much as 0.8 per cent. The benchmark is now headed for its worst month in two and a half years, and volatility is back to levels seen in February. The index is down 5.9 per cent in September.

The Nifty declined 0.7 per cent to close at 10,977. The index has ended with losses in seven of eight past trading sessions. From its peak touched a month ago, the 50-share blue chip index is down 6.5 per cent.

Business Standard

Nifty outlook and top trading calls for today's trade: Prabhudas Lilladher

STOCK MARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW:
Nifty has been correcting since seven days after making a high of 10,490 to now a low of 10,094. At this juncture, we may see some bounce coming in. However, the near term resistance would be at around 10,250-10,260 levels. The support for the day is seen at 10,060 while resistance is seen at 10,160.


BUY KOTAK BANK
CMP: Rs 1011.50    
TARGET: Rs 1090  
STOP LOSS: Rs 970
The stock has made a double bottom formation pattern in the daily chart after correcting from the peak of 1115 and has indicated a revival with a positive candle to signify potential and strength to rise further in the coming days. The RSI has also shown a trend reversal from the oversold zone and has signaled a buy in this stock. With the stock looking attractive for further gains and with good volume participation, we recommend a buy in this stock for an upside target of Rs 1090 keeping a stop loss of Rs 970.

BUY ASIAN PAINTS
CMP: Rs 1181.55    
TARGET: Rs 1270  
STOP LOSS: Rs 1140
The stock has been more or less in a consolidation phase and has been indicating a bullish candle pattern in the daily chart, signifying further potential and price rise to come. The stock looks well set for an upward movement with positive bias and RSI also indicating a steep rise has shown a trend reversal. With volume activity on the rise, we anticipate the stock to move till Rs 1270 levels and thus recommend a buy for an upside target of Rs 1270 keeping the base support  at Rs 1140.