INTRADAY TIPS FOR 27 NOVEMEBER 2009

GOOD MORNING!!!

WEAKNESS IN EUROPEAN MARKETS FOLLOWING A SETBACK IN CHINESE STOCKS TRIGGERED A SELL-OFF ON THE DOMESTIC BOURSES IN THE SECOND HALF OF THE DAY'S TRADING SESSION. WORLD STOCKS FELL AS NEWS OF DUBAI ASKING FOR A CREDITOR STANDSTILL AT DUBAI WORLD AND VIETNAM'S CURRENCY DEVALUATION, INCREASED INVESTORS' AVERSION TO RISK. SELLING PRESSURE WAS CONSPICUOUS IN BANKING, IT AND OIL & GAS STOCKS. THE MARKET BREADTH WAS WEAK WITH SMALL AND MID-CAP STOCKS UNDER SELLING PRESSURE. INTRADAY VOLATILITY WAS HIGH AS TRADERS ROLLED OVER POSITIONS IN THE DERIVATIVE SEGMENT FROM NOVEMBER 2009 SERIES TO DECEMBER 2009 SERIES AHEAD OF THE EXPIRY. THE MARKET CUT LOSSES AFTER AN INITIAL SLIDE. HOWEVER, THE INTRADAY RECOVERY PROVED SHORT-LIVED. THE MARKET WEAKENED IN EARLY AFTERNOON TRADE AS ASIAN STOCKS FELL. AS PER REPORTS, ROLLOVER OF NIFTY POSITIONS WAS ABOUT 64% WHILE MARKET WIDE ROLLOVER STOOD AT 66% AT THE END OF WEDNESDAY'S (25 NOVEMBER 2009) TRADE. IN INDIVIDUAL STOCKS, HINDUSTAN UNILEVER, CAIRN INDIA, INDIA CEMENTS, MARUTI SUZUKI AND POWER GRID CORPORATION HAVE WITNESSED HIGH ROLLOVER. CHINESE STOCKS TUMBLED ON THURSDAY, LED BY LOSSES IN BANK STOCKS, AS INVESTORS FLED THE MARKET AMID MOUNTING WORRIES THAT THE GOVERNMENT MAY TAKE STEPS TO CLAMP DOWN ON SURGING ASSET PRICES. BANKS FELL ON CONCERNS ABOUT SHRINKING LENDING AND A POSSIBLE NEED TO RAISE FUNDS NEXT YEAR TO SHORE UP THEIR CAPITAL. MEANWHILE, DUBAI'S FINANCIAL HEALTH HAS COME UNDER SCRUTINY AFTER A MAJOR, GOVERNMENT-OWNED INVESTMENT COMPANY ASKED FOR A SIX-MONTH DELAY ON REPAYING ITS DEBTS. DUBAI WORLD, WHICH HAS TOTAL DEBTS OF $59BN IS ASKING CREDITORS IF IT CAN POSTPONE ITS FORTHCOMING PAYMENTS UNTIL MAY NEXT YEAR. DUBAI WORLD HAS ALSO APPOINTED GLOBAL ACCOUNTANCY GROUP DELOITTE TO HELP WITH ITS FINANCIAL RESTRUCTURING. THE COMPANY HAS BEEN HIT HARD BY THE GLOBAL CREDIT CRUNCH AND RECESSION. IT WAS DUE TO REPAY $3.5BN OF ITS DEBTS NEXT MONTH. THE REQUEST FOR A DELAY IN REPAYMENTS LED TO MAJOR CREDIT RATINGS AGENCIES DOWNGRADING A NUMBER OF STATE-BACKED COMPANIES. MEANWHILE, VIETNAM'S STOCK MARKET TUMBLED AFTER THE NATION'S CENTRAL BANK DEVALUED THE CURRENCY BY AROUND 5% AGAINST THE US DOLLAR AND RAISED INTEREST RATES BY A PERCENTAGE POINT TO 8% FROM 1 DECEMBER 2009. CLOSER HOME, THE FOOD PRICE INDEX ROSE 15.58% AND PRIMARY ARTICLE INDEX ROSE 11.04% IN 12 MONTHS TO 14 NOVEMBER 2009, DATA RELEASED BY THE GOVERNMENT TODAY SHOWED. THE FUEL PRICE INDEX DECLINED 1.51%.

TODAY MARKETS WOULD OPEN GAP DOWN WITH LOT OF PRESSURE FROM THE ABOVE FACTORS. TODAY IF NIFTY TRADES BELOW 4997 IT IS LIKELY TO TOUCH 4939 WHICH IS GOOD SUPPORT BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 4844 CLOSING ANYTHING BELOW 4900 IS CONSIDERED TO BE WEAK AND WOULD LEAD NIFTY 4720 LEVELS. AND ON THE UPSIDE ONE HAS TO GO LONG ONLY ABOVE 5032.
SELL CAIRN INDIA SL 281 TGT 266/258/246
SELL STERLITE SL 851 TGT 833/821/810
SELL RELIANCE SL 1066 TGT 1040/1031/1026
SELL ICICI BANK SL 866 TGT 846/837/826
SELL TATASTEEL SL 551 TGT 532/522/516