KEY BENCHMARK INDICES HAVE DROPPED, REVERSING INTRADAY 2% GAINS, AS INVESTORS BOOKED PROFITS AFTER RECENT SHARP RALLY INDEX HEAVYWEIGHT RELIANCE INDUSTRIES (RIL) SLIPPED. CAPITAL GOODS, POWER, IT STOCKS FELL. WEAK EUROPEAN MARKETS AND LOWER US INDEX FUTURES SOURED SENTIMENT. THE MARKET BREADTH WAS NEGATIVE COMPARED TO A STRONG BREADTH EARLIER IN THE DAY. CONCERNS OVER THE PROGRESS OF INDIA'S ANNUAL MONSOON TRIGGERED PROFIT TAKING AFTER A RECENT STRONG RALLY IN SHARE PRICES. INDIA'S LARGEST POWER EQUIPMENT MAKER BY SALES BHARAT HEAVY ELECTRICALS AND INDIA'S LARGEST DEDICATED HOUSING FINANCE COMPANY BY SALES, HDFC DROPPED DESPITE GOOD Q1 RESULTS ANNOUNCED DURING TRADING HOURS. INDIA'S LARGEST OIL EXPLORATION FIRM BY REVENUE ONGC ROSE AHEAD OF ITS Q1 JUNE 2009
WEAK RAINS IS A CAUSE FOR CONCERN. THE LIKELY EMERGENCE OF EL NINO, THE NAME GIVEN TO THE WARMING OF THE PACIFIC OCEAN AND WHICH OFTEN INFLUENCES THE INDIAN MONSOON ADVERSELY, COUPLED WITH THE FAILURE OF THE MONSOON TO GATHER MOMENTUM IN THE KEY NORTH-WESTERN AGRICULTURAL BELT, HAS ADDED TO THE WORRY. UNDER THE CIRCUMSTANCES, THE ASSERTION BY THE INDIA METEOROLOGICAL DEPARTMENT (IMD) THAT MUCH OF THE RAIN DEFICIT IN JUNE WILL BE MADE UP IN JULY (WHICH IS MOSTLY OVER) AND AUGUST HAS FETCHED LITTLE RESULTS. THE MARKET BREADTH, INDICATING THE OVERALL HEALTH OF THE MARKET TURNED NEGATIVE FROM STRONG BREADTH EARLIER IN THE DAY.
TODAY IN NIFTY ONE CAN STAY LONG IF NIFTY TRADES ABOVE 4436 FOR A TARGET OF 4472 AND 4505 AND IF NIFTY MANAGES TO CROSS 4505 THEN WE CAN SEE NIFTY TO FACE STRONG RESISTANCE AT 4542 AND ON THE DOWN SIDE IF NIFTY TRADES BELOW 4402 THEN ONE CAN INITIATE SHORTS FOR A TARGET OF 4365 AND THEN 4302. MARKET HAS TAKEN SUPPORT AT THE CRUCIAL LEVEL SO ONE IS EXPECTED TO WAIT TILL THE NIFTY CROSSES OR BREACHES ABOVE SAID LEVELS.
BUY NIFTY SL 4345 TGT 4430/4456/4480/4500
BUY ONGC SL 1079 TGT 1135/1166
BUY MOSER BAER SL 79 TGT 85/87
BUY RANBAXY SL 264 TGT 274/277
BUY SUZLON SL 89 TGT 94/96
BUY ITC ABOVE 218 SL 215 TGT 221/224/226.7
SELL TECHM BELOW 770 SL 783 TGT 752/732/719/704
BUY ONGC SL 1079 TGT 1135/1166
BUY MOSER BAER SL 79 TGT 85/87
BUY RANBAXY SL 264 TGT 274/277
BUY SUZLON SL 89 TGT 94/96
BUY ITC ABOVE 218 SL 215 TGT 221/224/226.7
SELL TECHM BELOW 770 SL 783 TGT 752/732/719/704
POSITIONAL TRADES
INOX LIESURE 45 TGT 120. (6 MONTHS)
INOX LIESURE 45 TGT 120. (6 MONTHS)
