GOOD MORNING!!!
KEY BENCHMARK INDICES SURGED AS THE LATEST DATA SHOWED THE ECONOMY EXPANDED AT A STRONGER-THAN-EXPECTED 7.9% PACE IN THE SECOND QUARTER. HOWEVER, INTRADAY VOLATILITY WAS HIGH. ASIAN STOCKS SURGED AFTER UNITED ARAB EMIRATES CENTRAL BANK ON SUNDAY, 29 NOVEMBER 2009, OFFERED ADDITIONAL LIQUIDITY TO LOCAL AND INTERNATIONAL BANKS IN THE UAE AND REASSURED INVESTORS IT "STANDS BEHIND" THE LENDERS. ALSO BOOSTING THE SENTIMENTS, GLOBAL BANKS OUTSIDE THE GULF SAID THEY WERE NOT HEAVILY EXPOSED TO DUBAI DEBT. GOVERNMENT DATA RELEASED TODAY SHOWED THE GROSS DOMESTIC PRODUCT (GDP) GREW BY 7.9% IN Q2 SEPTEMBER 2009, FROM 7.1% IN THE PREVIOUS YEAR, SHATTERING FORECASTS AS STIMULUS MEASURES BOOSTED DEMAND AND MANUFACTURING ACTIVITY SURGED. THE ECONOMY HAD REGISTERED A 6.1% GROWTH IN THE FIRST QUARTER. THE BULK OF THE RECOVERY WAS LED BY A 9.2% GROWTH IN MANUFACTURING, WHILE MINING AND CONSTRUCTION ACTIVITIES ALSO EXPANDED BY 9.5% AND 6.5%, RESPECTIVELY. BUT AGRICULTURE CONTINUED TO ME A MAJOR DRAG WITH A MERE 0.9% GROWTH.
TODAY MARKET WOULD BE RANGE BOUND. NIFTY IF TRADES ABOVE 5040 THEN IS LIKELY TO MOVE UP TO 5070 AND BREAK ABOVE THIS LEVEL AND TRADE WITH GOOD VOLUMES MAY TAKE NIFTY TO 5111 ANY CLOSE ABOVE 5070 IS CONSIDERED TO BE VERY GOOD SIGN AND ONE CAN GO LONG POSITIONALLY. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5040 THEN LIKELY TO SEE NIFTY AT 5001 AND BREAK BELOW THIS LEVEL WOULD TAKE IT TO 4978 ONE CAN STAY SHORT IF NIFTY TRADES BELOW 5000.
BUY JSL SL 105 TGT 114/117
BUY RANBAXY SL 451 TGT 460/465/469
BUY HEROHONDA SL 1744 TGT 1714/1719/1724
BUY TATASTEEL SL 571 TGT 563/569
POSITIONAL TRADES
BUY CHOKSI IMAGING LTD TGT 200%/500%
