GOOD MORNING!!!
THE KEY BENCHMARK INDICES REMAINED FIRM TILL AFTERNOON TAKING NIFTY TO NEW HIGHS AFTER COMMENTS BY A TOP ECONOMIC ADVISER AND DATA SHOWING A SURGE IN FOOD PRICE INFLATION REINFORCED MARKET EXPECTATION OF A HIKE IN CASH RESERVE RATIO BY THE CENTRAL BANK TO SUCK OUT EXCESS LIQUIDITY IN THE BANKING SYSTEM, LATER IN THE AFTERNOON WITH THE UNION CABINET DECISION ON THE PENSION FUND REGULATORY & DEVELOPMENT AUTHORITY BILL THAT SEEKS TO BRING FOREIGN DIRECT INVESTMENT (FDI) INTO THE SECTOR. IN A MOVE THAT IS AIMED AT SIGNALLING THE UPA GOVERNMENT'S INTENT TO AGGRESSIVELY PUSH THE REFORM AGENDA, THE CABINET WILL CLEAR THE PENSION FUND REGULATORY & DEVELOPMENT AUTHORITY BILL THAT SEEKS TO BRING FOREIGN DIRECT INVESTMENT (FDI) INTO THE SECTOR. THE BILL PROPOSES TO ALLOW FOREIGN PLAYERS TO HOLD UP TO 26% STAKE IN INDIAN PENSION FUND COMPANIES. IT WOULD ALSO PERMIT PENSION FUNDS TO DEPLOY PART OF THEIR CORPUS ABROAD IN APPROVED INSTRUMENTS. THE PENSION BILL, ORIGINALLY INTRODUCED IN PARLIAMENT IN 2005, COULD NOT BE CLEARED DUE TO STIFF OPPOSITION FROM LEFT PARTIES. IT WAS THEN REFERRED TO THE PARLIAMENTARY STANDING COMMITTEE ON FINANCE, WHICH RECOMMENDED THE BILL WITH SOME MODIFICATIONS. BUSINESS ACTIVITY AMONG INDIAN SERVICES COMPANIES EXPANDED IN NOVEMBER 2009 BUT AT A SLOWER PACE THAN IN THE PREVIOUS MONTH, WITH BROAD GROWTH ACROSS ALL SECTORS, A SURVEY RELEASED ON THURSDAY SHOWED. IN OCTOBER, THE RBI WITHDREW EMERGENCY LIQUIDITY MEASURES AND INCREASED SOME LOAN PROVISIONING REQUIREMENTS, BUT LEFT ITS KEY POLICY RATES UNCHANGED. A HIGH INFLATION WILL REQUIRE MONETARY ACTION ON LIQUIDITY, THE FOOD PRICE INDEX ROSE 17.47% IN YEAR TO 21 NOVEMBER 2009,
TODAY MARKETS WOULD OPEN NEGATIVE AND THE MARKET LOOKS ON THE WEAKER SIDE. TODAY IF NIFTY BREAKS BELOW 5111 WOULD LEAD NIFTY TO 5070 AND BREAK BELOW THIS THERE WOULD SOME PROFIT BOOKING ON SHORT SIDE AT 5040 AND THE MAJOR SUPPORT SEEN IS AROUND 5003 ONE HAS TO WATCH CAREFULLY THIS LEVEL FOR SHORT ENTRY IF MARKET BREACHES THIS LEVEL AND CLOSES THEN WE CAN SEE FURTHER DIP IN MARKETS. ON THE UPSIDE IF NIFTY TRADES ABOVE 5046 THEN ONE CAN GO LONG FOR A TARGET OF 5164 AND ONE CAN STAY INVESTED IN LONGS AS LONG AS NIFTY IS ABOVE 5164 ONE LOOK FOR A TARGET OF 5267. AVIATION STOCKS LOOKS GOOD (JET AIRWAYS, SPICEJET & KFA)
BUY SASKEN COMM SL 162 TGT 175/178
BUY CIPLA SL 340 TGT 352/358
SELL TATAMOTORS SL 711 TGT 700/696/691
SELL ICICI BANK SL 891 TGT 875/866/857
SELL RELIANCE SL 1103 TGT 1081/1072
TODAY MARKETS WOULD OPEN NEGATIVE AND THE MARKET LOOKS ON THE WEAKER SIDE. TODAY IF NIFTY BREAKS BELOW 5111 WOULD LEAD NIFTY TO 5070 AND BREAK BELOW THIS THERE WOULD SOME PROFIT BOOKING ON SHORT SIDE AT 5040 AND THE MAJOR SUPPORT SEEN IS AROUND 5003 ONE HAS TO WATCH CAREFULLY THIS LEVEL FOR SHORT ENTRY IF MARKET BREACHES THIS LEVEL AND CLOSES THEN WE CAN SEE FURTHER DIP IN MARKETS. ON THE UPSIDE IF NIFTY TRADES ABOVE 5046 THEN ONE CAN GO LONG FOR A TARGET OF 5164 AND ONE CAN STAY INVESTED IN LONGS AS LONG AS NIFTY IS ABOVE 5164 ONE LOOK FOR A TARGET OF 5267. AVIATION STOCKS LOOKS GOOD (JET AIRWAYS, SPICEJET & KFA)
BUY SASKEN COMM SL 162 TGT 175/178
BUY CIPLA SL 340 TGT 352/358
SELL TATAMOTORS SL 711 TGT 700/696/691
SELL ICICI BANK SL 891 TGT 875/866/857
SELL RELIANCE SL 1103 TGT 1081/1072
