INTRADAY TIPS FOR 09 DECEMBER 2009

GOOD MORNING!!!

INDICES EXTENDED GAINS AFTER THE REBOUND IN EUROPEAN MARKETS AND HIGHER US INDEX FUTURES. MARKETS TRIGGERED SOON AFTER ANNOUNCEMENT THAT IT WILL SEEK PARLIAMENTARY APPROVAL TO SPEND AN EXTRA RS 25725-CRORE ($5.5 BILLION) FOR THE FISCAL YEAR TO END-MARCH 2010. THE GROSS ADDITIONAL EXPENDITURE WOULD BE RS 30943 CRORE, OF WHICH 5217 CRORE WOULD BE MET THROUGH SAVINGS, THE GOVERNMENT SAID. THE GOVERNMENT WILL SPEND AN EXTRA RS 3000 CRORE ON FERTILISER SUBSIDIES AND RS 3460 CRORE ON FOOD SUBSIDIES. THE GOVERNMENT WOULD ALSO SPEND RS 800 CRORE ON AN EQUITY INFUSION IN STATE-RUN CARRIER AIR INDIA. MOST ASIAN STOCKS DECLINED ON TUESDAY AFTER BERNANKE SAID THE US ECONOMY FACES FORMIDABLE HEADWINDS BUT THE BERNANKE EFFECT WAS NOT SEEN IN THE INDIAN MARKETS WITH US AND EUROPEAN TRADING IN POSITIVE ZONES. RELIANCE INDUSTRIES ROSE 2.42% TO RS 1081.20 AS IT WAS REPORTEDLY IN TALKS WITH MORE THAN A DOZEN BANKS TO READY A $8-10 BILLION WAR CHEST FOR THE ACQUISITION OF LYONDELLBASELL, THE WORLD'S THIRD-LARGEST PETROCHEMICAL COMPANY THAT HAS FILED FOR BANKRUPTCY IN THE US. ALL IN ALL MARKETS WENT UP ON A VERY VERY STRONG NOTE BREAKING ALL THE BARRIERS OF CONSOLIDATION AND THERE WAS A GOOD VOLUMES ON NIFTY.

TODAY MARKET WOULD BE FIRM AND RANGE BOUND. IF NIFTY BREAKS 5165 AND TRADES ABOVE THIS LEVEL ON A STRONG NOTE IT WILL TAKE NIFTY TO NEW HIGHS, NIFTY MAY GO TO 5265 LEVELS IN A VERY SHORT TIME IF SUSTAINS ABOVE 5165. IF NIFTY TRADES BELOW 5140 THEN LIKELY TO TEST 5097 LEVELS. ONE CAN INITIATE LONG TRADES IF NIFTY CLOSES ABOVE 5165 LEVELS WITHOUT HESITATION AND BE SHORT ON THE NIFTY AS LONG AS NIFTY TRADES BELOW 5165.

BUY IDBI SL 135 TGT 140/142
BUY IBREAL ABOVE 222 SL 214 TGT 224/229
BUY JSWSTEEL ABOVE 1015 SL 1004 TGT 1029/1045
BUY JPASSOCIATES ABOVE 230 SL 227.4 TGT 234/237
SELL MARUTI SL 1576 TGT 1560/1547
SELL RANBAXY SL 508 TGT 500/494
SELL SBIN 2316 TGT 2295/2281
SELL ONGC SL 1186 TGT 1168/1160