INTRADAY TIPS FOR 07 AUGUST 2009

GOOD MORNING!!!

MARKETS NOSEDIVED IN THE PENULTIMATE HOUR OF TRADE LED BY AUTO, METAL, REALITY AND FMCG STOCKS. THE FALL WAS MATERIALIZED AFTER TELEVISION REPORTS THAT THE MANSOON RAINS WERE 66% BELOW NORMAL. A WEAK MANSOON MAY HAMPER ECONOMIC GROWTH AS MORE THAN TWO-THIRDS OF THE PEOPLE LIVE IN VILLAGES AND 60% OF THE FARM LAND DEPENDS ON THE ANNUAL RAINS. HEALTH OF THE MARKET TURNED WEAK ONE IS ADVISED TO EXIT THEIR LONGS AND NOT TO GO SHORT TILL 4500 LEVELS BREACH BELOW THIS LEVEL ON CLOSING BASIS ONE CAN STAY SHORT TILL THEN ONE IS ADVISED TO STAY AWAY AND RE-ENTER LONGS ONLY ABOVE 4640 LEVELS ON THE CLOSING BASIS.

TODAY MARKET LOOKS NEGATIVELY BIASED WITH HIGHLY VOLATILE SESSION. NIFTY TRADING BELOW 4571 WILL LEAD THE RALLY TO 4522 AND BREACH BELOW THIS LEVEL CAN TAKE NIFTY TO 4483 CLOSING BELOW THIS LEVEL ONE CAN SEE NIFTY TO GO DOWN FURTHER AND ONE IS ADVISED TO STAY SHORT. ON THE UPSIDE ONE IS ADVISED TO BUY ABOVE 4640 FOR A TARGET OF 4688 AND CLOSE ABOVE 4640 ONE CAN EXPECT NIFTY TO GO TO NEW HIGHS.

SELL MARUTI 1382 TGT 1345/1332/1317
SELL STER SL 660 TGT 638/628/615
SELL TATA MOTORS SL 428 TGT 410/400
SELL ABAN SL 1137 TGT 1105/1074/1040
BUY BOMBAY DYEING SL 354 TGT 377/382/387
POSITIONAL TRADES
BUY KRBL TGT 150 ONE TO THREE MONTHS **GOOD BUY**
BUY NU TEK INDIA LTD TGT 68 ONE WEEK
BUY FINOLEX INDUSTRIES TGT 65
BUY SAKTHI SUGARS TGT 85/90