GOOD MORNING!!!
WELCOME TO THE NEW BEGINING AGAIN, AFTER A DISAPPOINTMENT OVER ECONOMIC REFORMS IN THE UNION BUDGET 2009-2010 RESULTED IN HEAVY SELLOFF IN KEY BENCHMARK INDICES. WEAK GLOBAL STOCKS ALSO WEIGHED ON THE INVESTORS SENTIMENT, BANKING, CAPITAL GOODS, POWER, METAL AND REALITY STOCKS LED TO THE DECLINE. INVESTORS WERE DISAPPOINTED AFTER THE BUDGET PRESENTATION AS THE BUDGET DIDNT CONTAIN ANY MAJOR REFORMS SUCH AS INCREASE IN FORIEGN DIRECT INVESTMENT IN INSURANCE SECTO AND DECONTROL OF FUEL PRICES AND ANOTHER MAJOR IMPORATANT ISSUE WAS DIVESTMETN NOTHING FAVOURED THE MARKETS. A SMALL DIVESTMENT OF 1120 CRORES FOR THE FINANCIAL YEAR ENDING 2010 WAS NO LUCRATIVE ISSUE FOR THE MARKETS TO REACT. A SHARPLY HIGHER FISCAL DEFICT TARGET TO 6.8% FOR THE FINANCIAL YEAR ENDING 2010 AFTER INCREASED SPENDING ON ROADS, POWER AND AID TO THE POOR. OVERALL NOTHING WAS IN FAVOUR OF BULLS IN THE MARKET.
TODAY MARKET WOULD REMAIN WEAK WITH HIGHLY VOLATILE SESSION. MARKET STRUCTURALLY HAS BECOME WEAK AND CONTINUE TO REMAIN WEAK FOR SOME MORE TIME AS THERE WAS NO CORRECTION AS WELL FROM 3600 LEVELS AND THE MARKET HAS BEEN WAITING WITHOUT CORRECTION SINCE ONE MONTH PRIOR TO ELECTIONS AND INVESTORS WERE WAITING FOR THE BUDGET WITH SOME EXPECTATIONS AND EVERYTHING WENT AGAINST AND NOW WE MAY SEE CORRECTION FROM THIS POINT ONWARDS FOR SOMETIME I WOULD SUGGEST A SMALL PULL BACK SHOULD NOT BE TREATED AS BULLISH TREND ANY PULL BACK JUST CONSIDER IT FOR SELLING WITH STRICT STOPLOSS. SELL THE WEAKEST STOCK AND BUY THE STRONGEST STOCKS. EXCEPT PHARMA NOTHING LOOKS GOOD FOR HOLDING IN THIS MARKET. IF NIFTY TODAY TRADES ABOVE 4163 THEN WE CAN SEE IT AROUND 4229 - 4256 AND IF NIFTY TRADES BELOW 4150 THEN WE CAN EXPECT IT TO COME DOWN TO 4101 AND THEN TO 4070.
SELL RELCAP SL 851 TGT 822/813/801
SELL LT SL 1481 TGT 1450/1436/1428
SELL TATASTELL SL 406 TGT 390/382
BUY RANBAXY & CIPLA
