GOOD MORNING!!!
VOLATILITY WAS THE KEY IN THE LAST TRADING SESSION KEY INDICES EDGED LOWER WITH INVESTORS CASHING IN ON GAINS AFTER A SHARP RALLY IN THE PAST FEW DAYS. THE SENSEX SETTLED BELOW 17,000 MARK AFTER ALTERNATIVELY MOVING ABOVE AND BELOW THAT LEVEL DURING THE DAY. METAL STOCKS ROSE. BUT CAPITAL GOODS AND BANKING STOCKS FELL HEAVYWEIGHT RELIANCE INDUSTRIES DROPPED AFTER SETTING RECORD DATE FOR A LIBERAL 1:1 BONUS ISSUE. ANOTHER INDEX HEAVYWEIGHT L&T ALSO FELL. THE INDUSTRY BODY ASSOCHAM ON TUESDAY, 17 NOVEMBER 2009, SUGGESTED THAT FOREIGN INSTITUTIONAL INVESTORS (FIIS) SHOULD BE CHARGED A TAX OF 2% OF THEIR MONEY PUMPED INTO THE STOCK MARKET TO PREVENT FURTHER RISE OF THE RUPEE AND ALSO AN ASSET-BUBBLE. AT A QUARTERLY POLICY REVIEW LATE LAST MONTH, THE RBI SAID THERE WERE SIGNS EXCESS LIQUIDITY IS SEEPING INTO ASSET PRICES. IMPOSING THE TAX WOULD HELP THE RBI TO MANAGE RUPEE AT REASONABLE LEVELS TO SAFEGUARD AND SUPPORT INDIAN EXPORTERS, HIT HARD BY RISING INPUT COST AND APPRECIATING RUPEE, ASSOCHAM SAID. THE RUPEE HAS APPRECIATED OVER 5% AGAINST THE US DOLLAR IN THE LAST SIX MONTHS.
TODAY MARKET WOULD REMAIN IN RANGE BOUND WITH NEGATIVELY BIASED. IF NIFTY TRADES BELOW 5045 THEN IT IS LIKELY TO REACH A TARGET OF 5017 AND BREACH BELOW THIS LEVEL WOULD TAKE NIFTY TO 4977 AND ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5075 THEN WAS CAN SEE NIFTY TO 5113 AND THEN TO 5159. ONE HAS TO REMAIN VERY CAUTIOUS AS THERE IS ONLY 5 TRADING SESSIONS LEFT IN THIS EXPIRY, ONE SHOULD KEEP A NOTE THAT MARKET IS UP ALMOST 550 POINTS FROM RECENT LOWS I.E., FROM 4530 TO 5080 WHICH IS AROUND 550 POINTS SO THERE WOULD BE SOME KIND OF CONSOLIDATION HERE BEFORE IT MAKES AN UP MOVE EVEN ON THE BULLISH SIDE OF MARKET WE MAY SEE SOME 130 POINTS CORRECTION IN NIFTY. SO ONE IS ADVISED TO STAY CAUTIOUS. THERE WILL LOT OF VOLATILITY FROM NOW ON IN THE MARKET SO STAY WITH STRICT STOPLOSS EITHER SIDES.
BUY ESSAR SHIPPING SL 67 TGT 74/76
BUY RELCAP ABOVE 909 SL 899 TGT 919/929/944
BUY JINDAL STEEL ABOVE 730 SL 719 TGT 738/744
BUY RANBAXY SL 419 TGT 430/434
SELL RELINFRA SL 1159 TGT 1133/1125/1111
SELL SUNPHARMA SL 1446 TGT 1424/1416
POSITIONAL TRADES
BUY RELIGARE TECHNOVA (526927) AT 82 TGT 100%/250%/500%
TODAY MARKET WOULD REMAIN IN RANGE BOUND WITH NEGATIVELY BIASED. IF NIFTY TRADES BELOW 5045 THEN IT IS LIKELY TO REACH A TARGET OF 5017 AND BREACH BELOW THIS LEVEL WOULD TAKE NIFTY TO 4977 AND ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5075 THEN WAS CAN SEE NIFTY TO 5113 AND THEN TO 5159. ONE HAS TO REMAIN VERY CAUTIOUS AS THERE IS ONLY 5 TRADING SESSIONS LEFT IN THIS EXPIRY, ONE SHOULD KEEP A NOTE THAT MARKET IS UP ALMOST 550 POINTS FROM RECENT LOWS I.E., FROM 4530 TO 5080 WHICH IS AROUND 550 POINTS SO THERE WOULD BE SOME KIND OF CONSOLIDATION HERE BEFORE IT MAKES AN UP MOVE EVEN ON THE BULLISH SIDE OF MARKET WE MAY SEE SOME 130 POINTS CORRECTION IN NIFTY. SO ONE IS ADVISED TO STAY CAUTIOUS. THERE WILL LOT OF VOLATILITY FROM NOW ON IN THE MARKET SO STAY WITH STRICT STOPLOSS EITHER SIDES.
BUY ESSAR SHIPPING SL 67 TGT 74/76
BUY RELCAP ABOVE 909 SL 899 TGT 919/929/944
BUY JINDAL STEEL ABOVE 730 SL 719 TGT 738/744
BUY RANBAXY SL 419 TGT 430/434
SELL RELINFRA SL 1159 TGT 1133/1125/1111
SELL SUNPHARMA SL 1446 TGT 1424/1416
POSITIONAL TRADES
