WE HAVE NOTICED A SPECTACULAR RALLY ON THE SPECULATORS, AS THEY TOOK FRESH POSITIONS BETTING ON THE NEW ECONOMIC REFORMS IN THE UNION BUDGET. GLOBAL CUES ALSO LIFTED SENTIMENT OF THE MARKETS. A GAIN OF 420 POINTS IN THE SENSEX LAST DAY WAS EXCEPTIONALLY HIGH ON THE OPENING DAY OF THE NEW CONTRACT, THE MAJOR TRIGGERS IN THE MARKET WERE CAPITAL GOODS AND BANKING. WITH THE REDUCTION IN THE LOT SIZES EVERY INVESTOR HAD CHANCE TO PLAY THERE BY TAKING THE MARKET MUCH MORE HIGHER WITH VOLUMES FROM RETAIL INVESTORS, LOWER LOT SIZES IN DERIVATIVE CONTRACT HAS MADE THE CONRACTS AFFORDABLE TO EVEN SMALL TRADERS. THE ONLY DAMPENING NEWS ON CARDS IS WEAK MANSOON COULD HIT RURAL DEMAND FOR CONSUMER GOODS. MANSOON RAINS, WHICH RUN FROM JUNE TO SEPTEMBER, HAVE WEAKENED AND ARE EXPECTED TO BE BELOW NORMAL WHICH IS A VERY BAD NEWS FOR THE MARKET ON THE MACRO ECONOMIC FRONT.
TODAY MARKETS WOULD BE POSITIVE, NIFTY IS TRADING ON THE VERY POSITIVE ZONE AND ALMOST ALL THE STOCKS IN THE NIFTY HAVE SHOWN A POSITIVE TRIGGER, TODAY NIFTY IF TRADES ABOVE 4400 THEN WE CAN SEE NIFTY AT 4448 AND IF NIFTY TRADES ABOVE 4450 FOR SOMETIME THEN WE CAN SEE NIFTY TO FACE STRONG RESISTANCE AT 4499 AND ON THE DOWN SIDE NIFTY IF TRADES BELOW 4343 THEN WE CAN SEE SOME SUPPORT AT 4312 AND IF IT BREACHES AND TRADES THEN IT MAY GO TO 4268 BUT CHANCES ARE REMOTE. AS NIFTY IS EXPECTED TO MOVE FURTHER UPSIDE TO 4800 LEVELS WITH SOME POSITIVE NEWS ON CARDS ON BUDGET NEWS. WE EXPECT CAPITAL GOODS, POWER, FERTILIZERS AND INFRASTRUCTURE STOCKS LIKELY TO SHOW SOME SURGE IN THE MARKETS ON BUDGET NEWS. ONE CAN TAKE POSITIONS ON NIFTY CALLS BY HEDGING WITH 1:3 (BUY 3 LOTS OF CALLS AND HEDGE WITH ONE LOT OF PUTS).
BUY IDFC ABOVE 137 SL 135.5 TGT 139/141/144
BUY HDFC ABOVE 2440 SL 2419 TGT 2464/2487
BUY HEROHONDA ABOVE 1418 SL 1402 TGT 1440/1449/1484
BUY IBREALEST ABOVE 217 SL 214 TGT 221/225/229
BUY KOTAK ABOVE 648 SL 641 TGT 671/688.
ONE CAN TAKE POSITIONS ON BHEL, LT, CHAMBAL. IDFC, POWER GRID** AND NTPC.
