INDICES LOGGED GOOD GAINS IN A VERY VOLATILE TRADING SESSION. STRONG INTRADAY REBOUND WAS BASED ON EXPECTATIONS OF STRONG Q2 RESULTS. THOUGH BREADTH OF THE MARKET REMAINED POSITIVE, SMALL AND MID-CAP STOCKS FAILED TO CATCH THE FRONT END STOCKS. FMCG SECTOR AGAIN GAINED FOR THE STRAIGHT SECOND DAY ON DEFENSIVE BUYING. BANKING AND METALS ALSO LOGGED SMART GAINS AFTER AN EARLY HICCUP. TELECOM STOCKS WERE HAMMERED FOR THE SECOND RUNNING DAY ON WORRIES FALLING TARIFFS AND INCREASING COMPETITION WILL HURT THE SECTOR'S PROFITABILITY. INTRADAY VOLATILITY WAS IMMENSE.BANK STOCKS LED AN INTRADAY REBOUND IN AFTERNOON TRADE. THE RECOVERY GATHERED STEAM WITH THE SENSEX REGAINING POSITIVE ZONE IN MID-AFTERNOON TRADE. THE MARKET STRUCK A FRESH INTRADAY HIGH IN LATE TRADE. STOCK AND SECTOR-SPECIFIC ACTIVITY MAY DOMINATE TRADE IN THE COMING DAYS BASED ON EXPECTATIONS ON Q2 RESULTS, WHICH WILL START TRICKLING IN SOON. AUTO FIRMS AND CEMENT FIRMS ARE SEEN REPORTING STRONG Q2 RESULTS ON THE BACK STRONG VOLUME GROWTH, LOWER INPUT COSTS AND ON HIGHER REALISATIONS. BANKS ARE SEEN REPORTING A SEDATE GROWTH IN CORE LENDING. A SHARP SURGE IN EQUITY MARKETS MAY HELP TREASURY GAINS FOR SOME BANKS.
TODAY, WITH THE STRONG RALLY ON THE LAST DAY AND WITH ALL GLOBAL QUES ON THE POSITIVE TERRAIN MARKETS MAY OPEN HIGH AND REMAIN IN THE POSITIVE ZONE. TODAY IF NIFTY TRADES ABOVE 5030 THEN IT IS QUITE EVIDENT THAT MARKET WILL GO TO 5090 AND TRADE ABOVE 5090 WILL HIT NEW HIGHS OF THE YEAR AND IS LIKELY TO TAKE NIFTY TO 5136 LEVELS. ON THE NEGATIVE SIDE OF THE MARKET IF NIFTY TRADES BELOW 5020 THEN YOU CAN SEE NIFTY TO SLIDE DOWN TO 4985 AND BREAK BELOW THIS LEVEL WOULD DRAG NIFTY TO 4960 AND CLOSE BELOW 4985 IS CONSIDERED AS A POINT OF EXIT ONLY ON THE CLOSING BASIS.
BUY JSW STEEL SL 863 TGT 875/884/894BUY HINDALCO SL 123.40 TGT 128/130/132
BUY RELINFRA SL 1269 TGT 1306/1319/1338
BUY TATASTEEL SL 503 TGT 526/532/540
BUY SAIL SL 164 TGT 168/172/175
BUY KFA SL 58.4 TGT 61/62
SELL RCOM BELOW 264.4 SL 272 TGT 251/239/226
POSITIONAL TRADE
BUY SULZER INDIA (MEDIUM TERM)**
