INTRADAY TIPS FOR 26 OCTOBER 2009

GOOD MORNING!!!

LAST TRADING SESSION WAS VERY VOLATILE WITH RANGE BOUND MOVEMENTS IN THE KEY INDICES NOTCHING UP SMALL GAINS ON FIRM GLOBAL STOCKS. INTRADAY VOLATILITY WAS IMMENSE. CAPITAL GOODS STOCKS FELL. RELIANCE INDUSTRIES (RIL) SLUMPED AS PARTNER HARDY OIL SAID A D9 WELL WILL BE PLUGGED AND ABANDONED. BUT, SUGARS, IT AND FMCG STOCKS ROSE. NIFTY PROVISIONALLY CLOSED BELOW THE PSYCHOLOGICAL 5,000 MARK AFTER MOVING ABOVE AND BELOW THAT LEVEL DURING THE DAY. THE NIFTY HAD SETTLED BELOW THE 5,000 MARK ON THURSDAY. ON THE POLITICAL FRONT, THE RULING CONGRESS PARTY-LED ALLIANCE WON TWO STATE POLLS ON THURSDAY, A RESULT THAT GIVES MORE ROOM FOR THE ALLIANCE TO PUSH ECONOMIC REFORMS.
TODAY MARKETS WOULD REMAIN RANGE BOUND AND THE VOLATALITY WOULD REMAIN IMMENSE. IF NIFTY TRADES ABOVE 5027 THEN IS LIKELY TO TEST 5072 ANYTHING ABOVE THIS LEVEL IS CONSIDERED TO BE POSITIVE AND DOWNSIDE IF NIFTY TRADES BELOW 4998 THEN WE CAN SEE NIFTY TO 4966 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 4923(THIS LEVEL IS VERY CRUCIAL) MARKET STRENGTH LOOKS WEAK STRUCTURALLY SO ONE IS ADVISED TO STAY CAUTIOUS. STOCK SPECIFIC MOVEMENT IS LIKELY.
BUY BAJAJ HIND SL 229 TGT 235/237
BUY DR REDDY SL 949 TGT 966/984
BUY IDFC SL 159 TGT 163/164.9
BUY ITC SL 256 TGT 265/269
SELL RELCAP BELOW 871 SL 881 TGT 866/855/848
POSITIONAL TRADES
BUY DUJODWALA PRODUCTS TGT 25/40