INTRADAY TIPS FOR 26 AUGUST 2009

SUSTAINED BUYING DEMAND IN INDEX PIVOTALS HELPED KEY BENCHMARK INDICES EXTEND GAINS FOR THE FOURTH DAY IN WHAT WAS A HIGHLY CHOPPY TRADING SESSION. INDICES LOGGED DECENT GAINS AS PIVOTALS REBOUNDED AFTER AN EARLY SLIDE WITH SOFTWARE STOCKS LEADING THE RECOVERY. VOLATILITY WAS HIGH AS TRADERS ROLLED OVER POSITIONS FROM AUGUST 2009 SERIES TO SEPTEMBER 2009 SERIES IN THE DERIVATIVES SEGMENT AHEAD OF THE EXPIRY OF AUGUST 2009 CONTRACTS ON THURSDAY, 27 AUGUST 2009. AFTER A WEAK OPENING TRIGGERED BY LOWER ASIAN STOCKS, THE MARKET SOON STAGED A REBOUND FROM LOWER LEVEL RECOUPING MOST OF THE EARLY LOSSES. HOWEVER, THE RECOVERY PROVED SHORT-LIVED. THE MARKET WEAKENED IN MID-MORNING TRADE. AFTER HITTING A FRESH INTRADAY LOW, THE MARKET BOUNCED BACK ONCE AGAIN IN EARLY AFTERNOON TRADE AS CHINESE STOCKS RECOVERED AFTER A STEEP INTRADAY FALL. COMMENTS BY STATE BANK OF INDIA CHAIRMAN THAT THE BIGGEST COMMERCIAL BANK IN TERMS OF BRANCH NETWORK IS UNLIKELY TO RAISE LENDING RATES IN THE NEXT SIX MONTHS, ALSO BOOSTED SENTIMENT. THE MARKET SLIPPED INTO THE RED FOR A SHORT WHILE IN MID-AFTERNOON TRADE BEFORE REGAINING POSITIVE ZONE. GAINS IN INDEX HEAVYWEIGHTS RELIANCE INDUSTRIES(RIL) AND LARSEN & TOUBRO (L&T) PUSHED THE SENSEX TO A FRESH INTRADAY HIGH IN MID-AFTERNOON TRADE.

TODAY MARKET LOOKS VOLATILE WITH HIGHLY RANGE BOUND TRADING. IF NIFTY SUSTAINS ABOVE 4680 THEN IT CAN LEAD THE MARKET TO 4740 LEVELS AND ON THE DOWN SIDE IF NIFTY TRADES BELOW 4625 THEN WE CAN SEE NIFTY TO TOUCH 4585 LEVELS. STAY CAUTIOUS IN THE MARKET AND PLAY WITH STRICT STOPLOSS. KEEP AN EYE ON TECH STOCKS AND CAPITAL GOODS. BANKING STOCKS LOOKS WEAK.

BUY LT SL 1554 TGT 1586
BUY TECH MAHINDRA SL 867 TGT 933/945
BUY TRANSFORMERS AND RECTIFIERS SL 340 TGT 355/362
BUY POLARIS SL 148 TGT 155/159
BUY NIIT TECH SL 132 TGT 140/142
POSITIONAL TRADES
BUY BF UTILITIES AROUND 900 TGT 1500/2000/2500***
BUY IFGL REFRACTORIES AT 26 TGT 50/60