KEY INDICES HAVE SHOWN REVERSEL OF STEEP INTRADAY LOSSES AND ENDED FIRM AFTER THE US FEDERAL RESERVE ON WEDNESDAY, 4 NOVEMBER 2009, PROMISED AGAIN TO KEEP INTEREST RATES EXCEPTIONALLY LOW FOR AN EXTENDED PERIOD BECAUSE IT EXPECTS ONLY A WEAK RECOVERY. METAL, REALTY, AUTO AND TELECOM STOCKS LED THE RALLY. THE SENSEX REGAINED PSYCHOLOGICAL 16,000 MARK. INDEX HEAVYWEIGHT RELIANCE INDUSTRIES JUMPED. THE MARKET BREADTH WAS STRONG. INTRADAY VOLATILITY WAS IMMENSE. THE MARKET DRIFTED LOWER IN EARLY TRADE ON WEAK ASIAN STOCKS. A SHARP RALLY WAS WITNESSED IN MID-AFTERNOON TRADE AND INDICIES SURGED TO HIT A FRESH INTRADAY HIGH IN LATE TRADE. WITH SHORT-TERM INTEREST RATES VERY LOW, GLOBAL TRADERS HAVE TURNED TO BORROWING FUNDS CHEAPLY IN THE US AND THEN REINVESTING THE PROCEEDS IN EQUITIES AND COMMODITIES, LOOKING TO LOCK IN HIGHER RETURNS AND BENEFITING FROM FURTHER EROSION IN THE DOLLAR. THERE HAS BEEN A SOLID SURGE IN INFLOWS IN EMERGING MARKETS EQUITY FUNDS THIS YEAR. TELECOM STOCKS ROSE ON REPORTS THE DEPARTMENT OF TELECOM (DOT) WILL SEEK A FAST-TRACK APPROVAL FROM THE FINANCE MINISTRY TO SLASH THE ANNUAL LICENCE FEE BY UP TO A THIRD FOR TELECOM OPERATORS WITH LARGE NETWORK PRESENCE. IT WILL ALSO PROPOSE TO THE FINANCE MINISTRY THAT ALL LICENCE FEE BE EXEMPTED FOR LANDLINE SERVICES, REPORTS SUGGEST. BHARTI AIRTEL, RELIANCE COMMUNICATIONS AND IDEA CELLULAR ROSE BY BETWEEN 4.5% TO 5.34%.
TODAY NIFTY MAY BE RANGE BOUND, TODAY IF NIFTY TRADES ABOVE 4790 THEN IT IS LIKELY TO REACH A TARGET OF 4831 AND TRADE ABOVE THIS POINT WITH VOLUMES MAY LEAD NIFTY TO 4870 AND ON THE DOWNSIDE IF NIFTY TRADES BELOW 4740 THEN ONE CAN SHORT NIFTY FOR A TARGET OF 4701 AND BREAK BELOW THIS LEVEL WOULD LEAD NIFTY TO 4680 AND BELOW THIS LEVEL WE CAN SEE NFITY TO TAKE SUPPORT AROUND 4645. ONE IS ADVISED TO STAY INVESTED AT THIS STAGE AS MARKET HAS PULLED BACK FROM NEGATIVE TERRITORY TO POSITIVE TERRITORY. MARKET HAS REVERSED ITS POSITION FROM A VERY WEAK ZONE TO A VERY STRONG ZONE SO ONE IS ADVISED TO EXIT ALL SHORTS AND BE LONG AS LONG AS NIFTY TRADES BELOW 4740. (NOTE: ONE HAS TO BEAR IN MIND THAT IF NIFTY CLOSES ABOVE 4860 THEN WE CAN SEE NIFTY TO REACH 4934 IN A VERY SHORT TIME )
BUY RELCAP SL 792 TGT 829
BUY RELINFRA SL 1074 TGT 1150/1200/1250 TODAY NIFTY MAY BE RANGE BOUND, TODAY IF NIFTY TRADES ABOVE 4790 THEN IT IS LIKELY TO REACH A TARGET OF 4831 AND TRADE ABOVE THIS POINT WITH VOLUMES MAY LEAD NIFTY TO 4870 AND ON THE DOWNSIDE IF NIFTY TRADES BELOW 4740 THEN ONE CAN SHORT NIFTY FOR A TARGET OF 4701 AND BREAK BELOW THIS LEVEL WOULD LEAD NIFTY TO 4680 AND BELOW THIS LEVEL WE CAN SEE NFITY TO TAKE SUPPORT AROUND 4645. ONE IS ADVISED TO STAY INVESTED AT THIS STAGE AS MARKET HAS PULLED BACK FROM NEGATIVE TERRITORY TO POSITIVE TERRITORY. MARKET HAS REVERSED ITS POSITION FROM A VERY WEAK ZONE TO A VERY STRONG ZONE SO ONE IS ADVISED TO EXIT ALL SHORTS AND BE LONG AS LONG AS NIFTY TRADES BELOW 4740. (NOTE: ONE HAS TO BEAR IN MIND THAT IF NIFTY CLOSES ABOVE 4860 THEN WE CAN SEE NIFTY TO REACH 4934 IN A VERY SHORT TIME )
BUY RELCAP SL 792 TGT 829
BUY DLF SL 367 TGT 394/412
BUY SUZLON SL 59 TGT 68.4/72.6
