GOOD MORNING!!!
THE MARKET PARED GAINS AFTER HITTING FRESH INTRADAY HIGH IN MID-MORNING TRADE, A SURGE IN HEADLINE INFLATION PULLED THE MARKET LOWER WITH BANK SHARES LEADING THE SLIDE, BANKING SHARES FELL ON A LIKELY MONETARY TIGHTENING BY THE RBI AFTER A SHARP JUMP IN INFLATION.. METAL AND FMCG STOCKS FELL. BUT, CEMENT AND IT STOCKS ROSE. IT STOCKS ROSE AFTER STRONGER-THAN-EXPECTED RETAIL SALES AND CONSUMER SENTIMENT DATA IN THE US REINFORCED INVESTOR CONFIDENCE IN A STEADY ECONOMIC RECOVERY THE MARKET BREADTH WAS WEAK IN CONTRAST TO A STRONG BREADTH IN EARLY TRADE. THE MARKET MOVED BETWEEN POSITIVE AND NEGATIVE ZONE LATER. CLOSER HOME, INFLATION BASED ON THE WHOLESALE PRICE INDEX (WPI) SURGED 4.78. THAT WAS MUCH HIGHER THAN PREVIOUS MONTH'S ANNUAL RISE OF 1.34%. THE FOOD ARTICLE INDEX WITHIN THE WHOLESALE PRICE INDEX ROSE 16.71% IN NOVEMBER 2009. THE MANUFACTURING PRODUCTS INDEX IN THE WPI ROSE AN ANNUAL 3.99%. THE DISINVESTMENT PROGRAMME IS REPORTEDLY SET TO ENTER AN AMBITIOUS PHASE IN THE NEXT FINANCIAL YEAR WITH THE DEPARTMENT OF DISINVESTMENT PLANNING TO SEEK CABINET APPROVAL FOR A HOST OF COMPANIES FROM JANUARY 2010. THE CABINET HAS SO FAR FOLLOWED A CAUTIOUS APPROACH IN APPROVING DISINVESTMENT IN COMPANIES, THOUGH IT HAS SIMULTANEOUSLY COME OUT WITH A BROAD POLICY DIRECTION FOR THE PROGRAMME. BASED ON THE POLICY, THE DISINVESTMENT DEPARTMENT HAS PREPARED A LIST OF UP TO 30 COMPANIES THAT CAN BE CONSIDERED FOR DISINVESTMENT .
THE MARKET PARED GAINS AFTER HITTING FRESH INTRADAY HIGH IN MID-MORNING TRADE, A SURGE IN HEADLINE INFLATION PULLED THE MARKET LOWER WITH BANK SHARES LEADING THE SLIDE, BANKING SHARES FELL ON A LIKELY MONETARY TIGHTENING BY THE RBI AFTER A SHARP JUMP IN INFLATION.. METAL AND FMCG STOCKS FELL. BUT, CEMENT AND IT STOCKS ROSE. IT STOCKS ROSE AFTER STRONGER-THAN-EXPECTED RETAIL SALES AND CONSUMER SENTIMENT DATA IN THE US REINFORCED INVESTOR CONFIDENCE IN A STEADY ECONOMIC RECOVERY THE MARKET BREADTH WAS WEAK IN CONTRAST TO A STRONG BREADTH IN EARLY TRADE. THE MARKET MOVED BETWEEN POSITIVE AND NEGATIVE ZONE LATER. CLOSER HOME, INFLATION BASED ON THE WHOLESALE PRICE INDEX (WPI) SURGED 4.78. THAT WAS MUCH HIGHER THAN PREVIOUS MONTH'S ANNUAL RISE OF 1.34%. THE FOOD ARTICLE INDEX WITHIN THE WHOLESALE PRICE INDEX ROSE 16.71% IN NOVEMBER 2009. THE MANUFACTURING PRODUCTS INDEX IN THE WPI ROSE AN ANNUAL 3.99%. THE DISINVESTMENT PROGRAMME IS REPORTEDLY SET TO ENTER AN AMBITIOUS PHASE IN THE NEXT FINANCIAL YEAR WITH THE DEPARTMENT OF DISINVESTMENT PLANNING TO SEEK CABINET APPROVAL FOR A HOST OF COMPANIES FROM JANUARY 2010. THE CABINET HAS SO FAR FOLLOWED A CAUTIOUS APPROACH IN APPROVING DISINVESTMENT IN COMPANIES, THOUGH IT HAS SIMULTANEOUSLY COME OUT WITH A BROAD POLICY DIRECTION FOR THE PROGRAMME. BASED ON THE POLICY, THE DISINVESTMENT DEPARTMENT HAS PREPARED A LIST OF UP TO 30 COMPANIES THAT CAN BE CONSIDERED FOR DISINVESTMENT .
TODAY MARKET LOOKS RANGE BOUND WE CAN SEE VERY STOCK SPECIFIC MOVES IN THE MARKET AND MARKET MAY REMAIN VOLATILE AS TODAY BEING THE LAST DAY FOR ADVANCE TAX PAYMENT FOR THIS QUARTER WE MAY SEE SHARP UP AND DOWNSIDE MOVEMENT ON THE BASIS OF TAX FILING. TODAY IF NIFTY TRADES BELOW 5105 THEN LIKELY TO SEE NIFTY TO SLIDE DOWN TO 5070 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5003 WITH MINOR SUPPORT AROUND 5040. AND ON THE UPSIDE IF NIFTY TRADES ABOVE 5130 THEN WE CAN SEE NIFTY TO TOUCH 5165 AND TRADE ABOVE 5165 CONVINCINGLY WOULD TAKE NIFTY TO NEW HIGHS OF THE YEAR. IF NIFTY TRADES ABOVE 5165 THEN ONE CAN SEE NIFTY TO MOVE UP TO 5265 IN A VERY SHORT TIME. LOOK AT CEMENT STOCKS, EDUCATION STOCKS.
BUY RANBAXY SL 514 TGT 526/534/542
BUY AMBUJACEM SL 98 TGT 102/105
BUY INFOSYSTECH SL 2487 TGT 2517/2540
BUY NIIT TECH SL 174 TGT 181/184
BUY INDIA CEMENTS SL 117 TGT 125/128
