GOOD MORNING!!!
MARKETS HAVE CONTINUED LAST WEEKS FALLING STREAK WITH MAJOR HEAVY WEIGHTS LOOSING. WITH WEAK EUROPEAN STOCKS AND LOWER US INDEX FUTURES ON MONDAY LED THE MARKET TO THE DOWNFALL. THERE WAS ONLY STOCK SPECIFIC BUYING IN SELECTED SCRIPS OUTSIDE THE INDICES. SENSEX FELL 340 POINTS FROM DAY HIGH AND CLOSE TO 60 POINTS FROM DAYS LOW. THE MAJOR DECLINE WAS LED BY SECTORS LIKE OIL AND GAS, METALS, IT, REALITY AND AUTO STOCKS. MARKET OPENED IN POSITIVE NOTE WITH THE STRONG CLOSING OF PREVIOUS DAY (FRIDAY) BUT COULDNT SUSTAIN IT ANY LONGER, FRIDAYS GAINS IN THE LAST HOUR WAS PURELY BASED ON NEWS AND MANY COUNTERS YESTERDAY YET AGAIN STARTED TO JOIN THE LAST WEEKS DOWNSIDE RALLY. NOW THIS DOWNFALL IS BEING SUPPORTED BY MANY EXTERNAL FACTORS WHICH MAY MAKE OUR MARKETS MUCH MORE WEAKER LIKE GLOBAL CUES, NEWS ON STT CUT IS UNLIKELY IN THIS BUDGET, FII SELL OFF, DII SELL OFF AND BAD NEWS POURING FOR RELIANCE. MARKETS AT THIS JUNCTURE LOOKS WEAK EXCEPT FOR BANKING STOCKS IF WE WITNESS ANOTHER 150 POINTS DOWNSIDE RALLY FROM HERE ON THEN YOU CAN SEE BANKING STOCKS WILL ALSO BLEED THERE BY WEAKEN THE INDICES FURTHER. I WOULD LIKE TO CAUTION ALL THE INVESTORS AND TRADERS TO STAY AWAY FROM LONGS TILL 30 JUNE 2009 OR BELOW 4375.
FOR TODAY MARKET WOULD OPEN IN RED WITH VOLATALITY IMMENSE AHEAD OF EXPIRY. NIFTY MIGHT TAKE STRONG SUPPORT AT 4150 AND THEN IF IT TRADES BELOW FOR SOMETIME THEN WE CAN SEE NIFTY TO BREAK BELOW 4100 TODAY ITSELF IN THE DAYS TO COME WE CAN SEE NIFTY AT 4069 AND 3945 LEVELS. ON THE UPSIDE NIFTY MAY GO UP TO THE MAXIMUM OF 4288 IF IT BREACHES THEN NIFTY HAS RESISTANCE AT 4375 AND IF NIFTY CLOSES ABOVE 4375 (CHANCES ARE REMOTE) ONE CAN INITIATE LONGS TILL THEN IT IS WISE TO BE AWAY THAN GETTING STRUCK.
BUY MARUTI ONLY ABOVE 1065 SL 1056 TGT 1081/1092
SELL DLF BELOW 321 SL 326 TGT 316/307.8
SELL RELIANCE CAPITAL BELOW 890 SL 901 TGT 865/837
SELL TATAPOWER 1100 SL 1110 TGT 991/986/971
SELL RANBAXY BELOW 270 SL 275 TGT 262/257/251
