INDICES WERE VERY POSITIVE IN THE OPENING TRADE ON FRIDAY AND PAIRED GAINS AFTER A NEGATIVE BREADTH WITH EUROPEAN STOCKS SOARING IN THE AFTERNOON, MARKET BOUNCED BACK WITH VENGEANCE AND WAS UP BY AROUND 70 POINTS IN NIFTY INDICATING OVERALL HEALTH OF THE MARKET REMAINS VERY STRONG. BANKING AND FMCG STOCKS ROSE. REALTY STOCKS FELL IN VOLATILE TRADE. INDEX HEAVYWEIGHT RELIANCE INDUSTRIES (RIL) PARED GAINS. THE MARKET BREADTH, INDICATING THE OVERALL HEALTH OF THE MARKET WEAKENED FROM EARLIER STRONG BREADTH BUT CORE STRUCTURE STILL REMAINS STRONG. THE Q1 JUNE 2009 RESULTS ANNOUNCED SO FAR HAVE BEEN ENCOURAGING, WITH LOWER COSTS HELPING BOTTOMLINE GROWTH. THE MAJOR CAUSE OF CONCERN IS MONSOONS. BUT A WEAK MONSOON REMAINS A BIGGEST CAUSE OF CONCERN. INDIA'S MONSOON RAINS WERE 18% BELOW NORMAL IN THE WEEK TO 29 JULY 2009, HAVING BEEN ABOVE NORMAL IN THE PRECEDING TWO WEEKS. TOTAL RAINFALL SINCE THE BEGINNING OF JUNE WAS 19% BELOW AVERAGE, THE INDIA METEOROLOGICAL DEPARTMENT SAID ON THURSDAY. ON THE FLIP SIDE, WATER LEVELS IN INDIA'S 81 MAIN RESERVOIRS ROSE TO 35% OF CAPACITY IN THE WEEK TO 30 JULY 2009, UP FROM 23% A WEEK EARLIER AND 31% A YEAR AGO, GOVERNMENT DATA SHOWED. MORE THAN TWO-THIRDS OF THE PEOPLE LIVE IN VILLAGES AND 60% OF THE FARM LAND DEPENDS ON THE ANNUAL RAINS.
TODAY MARKET WOULD BE RANGE BOUND. MARKET IS IN BULLISH PHASE AND IS EXPECTED TO REMAIN BULLISH AND HEAD TOWARDS 4800-5000-5200 FOR TODAY ONE CAN TAKE FRESH POSITIONS STRONGLY IN THE CLOSING IF MARKET SUSTAIN ABOVE 4700 FOR POSITIONAL TRADING AND FOR INTRADAY TRADING ONE CAN GO FOR BUYING WITH A STOPLOSS OF 4580 MARKET WOULD GET AGGRESSIVE ON THE BUYING SIDE IF NIFTY ONCE CROSSES 4700 AND HOLDS THERE. DON’T SHORT ANYTHING UNTIL MARKET BREACHES 4485 LEVELS AND EVERY DIP CAN BE USED AS BUYING OPPORTUNITY IN INTRADAY AND DON’T GET PANIC ON THE LONG SIDE AS MARKET WOULD BOUNCE BACK AT EVERY DECLINE SO REMAIN LONG WITH STOPLOSS AND DON’T GET PANIC IN INTRADAY AS MARKET BREADTH IS POSITIVE.
BUY TATA MOTORS SL 414 TGT 428/432 **
BUY HCL INFOSYS SL 115 TGT 123/125
BUY ESSAR OIL SL 147 TGT 157/160
BUY ONGC SL1149 TGT 1178/1189
BUY UNITECH SL 89.20 TGT 91.50/94
BUY ABAN SL 1020 TGT 1079/1100
BUY RCOM ABOVE 278 SL 272 TGT 283/288/294
TODAY MARKET WOULD BE RANGE BOUND. MARKET IS IN BULLISH PHASE AND IS EXPECTED TO REMAIN BULLISH AND HEAD TOWARDS 4800-5000-5200 FOR TODAY ONE CAN TAKE FRESH POSITIONS STRONGLY IN THE CLOSING IF MARKET SUSTAIN ABOVE 4700 FOR POSITIONAL TRADING AND FOR INTRADAY TRADING ONE CAN GO FOR BUYING WITH A STOPLOSS OF 4580 MARKET WOULD GET AGGRESSIVE ON THE BUYING SIDE IF NIFTY ONCE CROSSES 4700 AND HOLDS THERE. DON’T SHORT ANYTHING UNTIL MARKET BREACHES 4485 LEVELS AND EVERY DIP CAN BE USED AS BUYING OPPORTUNITY IN INTRADAY AND DON’T GET PANIC ON THE LONG SIDE AS MARKET WOULD BOUNCE BACK AT EVERY DECLINE SO REMAIN LONG WITH STOPLOSS AND DON’T GET PANIC IN INTRADAY AS MARKET BREADTH IS POSITIVE.
BUY TATA MOTORS SL 414 TGT 428/432 **
BUY HCL INFOSYS SL 115 TGT 123/125
BUY ESSAR OIL SL 147 TGT 157/160
BUY ONGC SL1149 TGT 1178/1189
BUY UNITECH SL 89.20 TGT 91.50/94
BUY ABAN SL 1020 TGT 1079/1100
BUY RCOM ABOVE 278 SL 272 TGT 283/288/294
