INTRADAY TIPS FOR 10 DECEMBER 2010

GOOD MORNING!!!

MARKET EXTENDED LAST TWO DAYS' LOSSES IN A BROAD BASED SELL-OFF INDICES TUMBLED MORE THAN 2%, UNDER PERFORMING MOSTLY HIGHER GLOBAL STOCKS, AS DATA SHOWING HEAVY SELLING BY FOREIGN FUNDS ON WEDNESDAY HAS DAMPENED INVESTORS SENTIMENTS. THE MARKET BREADTH WAS EXTREMELY WEAK. INTRADAY VOLATILITY WAS HIGH. THE MARKET SLIPPED INTO THE RED AFTER A FIRM START. THE MARKET RECOVERED SHARPLY TO TURN POSITIVE FOR A BRIEF PERIOD AFTER HITTING A FRESH INTRADAY LOW IN MORNING TRADE. THE MARKET MOVED IN A NARROW RANGE IN THE NEGATIVE TERRAIN IN MID-MORNING TRADE. THE MARKET EXTENDED LOSSES TO HIT FRESH INTRADAY LOW IN EARLY AFTERNOON TRADE. IMMENSE VOLATILITY WAS WITNESSED IN MID-AFTERNOON TRADE AS THE KEY INDICES LOST GROUND, SOON AFTER STAGING AN INTRADAY RECOVERY. INVESTORS DUMPED SMALL-CAP AND MID-CAP SHARES AS MEDIA REPORTS OF POSSIBLE PRICE RIGGING IN SELECT STOCKS, COMING CLOSE ON THE HEELS OF A SEBI ACTION LAST WEEK AGAINST FOUR FIRMS ON ALLEGATIONS OF PRICE MANIPULATION, RATTLED INVESTORS. BANKING, METAL, REALTY, AUTO AND CONSUMER DURABLES STOCKS LED LOSSES.

TODAY MARKETS LOOK WEAK AND NEGATIVE ON WEAK CLOSING AND NEGATIVE OPENING OF ASIAN STOCKS AND IF NIFTY TRADES BELOW 5755 THEN ONE CAN SEE NIFTY TO MOVE DOWN TO 5725 LEVELS AND ANY BREACH BELOW THIS LEVEL WOULD DRAG NIFTY TO 5700 AND ANY CLOSE BELOW 5700 WOULD TAKE NIFTY TO FURTHER NEW LOWS. ON THE POSITIVE SIDE BETTER AVOID POSITIONS FOR THE DAY AS TODAY BEING FRIDAY AND ONE CAN SEE GOOD AMOUNT OF PROFIT BOOKING TO CROP-IN. TODAY IF NIFTY OPENS NEGATIVE BY MORE THAN 40 TO 50 POINTS THEN ONE CAN BUY NIFTY FUTURES AND STOCKS WITH A STOPLOSS OF DAY LOW IN THE FIRST 10 MINUTES OF TRADE BUT IF NIFTY DOES NOT FALL MORE THAN 40 POINTS IN FIRST 10 MINUTES OF TRADE THEN ONE IS ADVISED TO BE ON THE NEGATIVE SIDE. IF NIFTY BREACHES 5725 THEN WE STILL HAVE SCOPE OF FURTHER DECLINE IN NIFTY SO STAY CAUTIOUS, EVEN IF YOU HAPPEN TO BUY NIFTY IN THE FIRST 10 MINUTES OF TRADE MAKE SURE THAT YOUR STOPLOSS IS 5725. METALS AND PHARMA HAS WIDE SCOPE OF DECLINE IN THE PRESENT CONDITIONS SINCE THEY HAVE NOT CORRECTED BUT IF NIFTY FALLS BELOW 5725 THEN WE CAN SEE THESE SECTORS PARTICIPATING IN THE DOWNWARD RALLY.