GOOD MORNING!!!
IT WAS A SPECTACULAR START OF THE YEAR WITH MANY INDICES HITTING 20 MONTHS HIGH ON THE STRONG AUTO SALES AND SURGE IN MANUFACTURING ACTIVITY IN THE LAST MONTH AND ADDING TO THE TRIGGER IS THE JUMP IN EXPORTS HAS TRIGGERED THE MARKETS TO THE NEW HIGHS. NIFTY HAS CLOSED AT 22 MONTH HIGH WHILE SENSEX CLOSED 20 MONTH HIGH.. IT, CEMENT, BANKING, METAL AND CONSUMER DURABLES STOCKS MOVED UP WITH MARKET BREADTH EDGING MUCH STRONGER. WITH FINANCE MINISTRY CHIEF ECONOMIC ADVISOR STATING ABOUT THE EXPECTED GROWTH OF ECONOMY AT MORE THAN 7.5% IN THE FISCAL YEAR ENDING MARCH 2010, HE ALSO ADDED, “THERE IS NO EXPECTATION OF MONETARY TIGHTENING”, AND IT WAS ALSO SPECIFIED THAT THE INFLATION WHICH IS TAKING PLACE IS SECTOR SPECIFIC AND THERE IS NO REASON FOR TIGHTENING OF MONETARY POLICY, WITH THIS ANNOUNCEMENT AND EUROPEAN MARKETS OPENING POSITIVE MARKETS HAVE TRIGGERED TO THE MULTI MONTH HIGHS.
ONE IS ADVISED NOT TO SHORT AT THIS POINT OF TIME AS THERE IS NO NEGATIVE INDICATION IN THE MARKETS AND TO THE MAJORITY MARKET IS ON THE GOOD RALLY SO MAKE USE OF IT AND TIMELY EXIT WHEN IT IS REQUIRED AS INDICATED BELOW SOME OF THE POSITIVE TRIGGERS FOR MARKETS ARE: -
(a) LATEST DATA SHOWED THAT THE RATE OF GROWTH IN MANUFACTURING ROSE FOR THE FIRST TIME IN THREE MONTHS IN DECEMBER 2009, WITH ACTIVITY REACHING ITS HIGHEST SINCE MAY 2009 ON SHARP RISES IN NEW WORK AND OUTPUT.
(b) BETTER ADVANCED TAX PAYMENTS WHICH INDICATE GOOD Q3 RESULTS
(c) OUTSTANDING AUTO SALES
(d) POSITIVE GLOBAL QUES.
IT WAS A SPECTACULAR START OF THE YEAR WITH MANY INDICES HITTING 20 MONTHS HIGH ON THE STRONG AUTO SALES AND SURGE IN MANUFACTURING ACTIVITY IN THE LAST MONTH AND ADDING TO THE TRIGGER IS THE JUMP IN EXPORTS HAS TRIGGERED THE MARKETS TO THE NEW HIGHS. NIFTY HAS CLOSED AT 22 MONTH HIGH WHILE SENSEX CLOSED 20 MONTH HIGH.. IT, CEMENT, BANKING, METAL AND CONSUMER DURABLES STOCKS MOVED UP WITH MARKET BREADTH EDGING MUCH STRONGER. WITH FINANCE MINISTRY CHIEF ECONOMIC ADVISOR STATING ABOUT THE EXPECTED GROWTH OF ECONOMY AT MORE THAN 7.5% IN THE FISCAL YEAR ENDING MARCH 2010, HE ALSO ADDED, “THERE IS NO EXPECTATION OF MONETARY TIGHTENING”, AND IT WAS ALSO SPECIFIED THAT THE INFLATION WHICH IS TAKING PLACE IS SECTOR SPECIFIC AND THERE IS NO REASON FOR TIGHTENING OF MONETARY POLICY, WITH THIS ANNOUNCEMENT AND EUROPEAN MARKETS OPENING POSITIVE MARKETS HAVE TRIGGERED TO THE MULTI MONTH HIGHS.
ONE IS ADVISED NOT TO SHORT AT THIS POINT OF TIME AS THERE IS NO NEGATIVE INDICATION IN THE MARKETS AND TO THE MAJORITY MARKET IS ON THE GOOD RALLY SO MAKE USE OF IT AND TIMELY EXIT WHEN IT IS REQUIRED AS INDICATED BELOW SOME OF THE POSITIVE TRIGGERS FOR MARKETS ARE: -
(a) LATEST DATA SHOWED THAT THE RATE OF GROWTH IN MANUFACTURING ROSE FOR THE FIRST TIME IN THREE MONTHS IN DECEMBER 2009, WITH ACTIVITY REACHING ITS HIGHEST SINCE MAY 2009 ON SHARP RISES IN NEW WORK AND OUTPUT.
(b) BETTER ADVANCED TAX PAYMENTS WHICH INDICATE GOOD Q3 RESULTS
(c) OUTSTANDING AUTO SALES
(d) POSITIVE GLOBAL QUES.
WE MAY SEE A POSITIVE OPENING IN THE MARKETS AND WE MAY SUSTAIN AN UPTREND AS LONG AS NIFTY IS HOLDING 5185, ONE IS ADVISED TO HOLD THEIR LONGS AS LONG AS NIFTY IS CLOSING ABOVE 5185 LEVELS AND KEEP BOOKING PARTIAL PROFITS. TODAY, IF NIFTY TRADES ABOVE 5240 THEN LIKELY TO MOVE TO 5282 AND TRADE ABOVE THIS POINT WOULD TAKE NIFTY TO FURTHER HIGHS AND CAN SEE NIFTY TO TOUCH 5400. ON THE DOWNSIDE IF NIFTY TRADES BELOW 5224 THEN MAY DRIFT DOWN TO 5197 AND ANY CLOSE BELOW 5185 IT IS LIKELY TO COME DOWN SO EXIT ALL LONGS BELOW 5185 UNTIL THEN KEEP BOOKING PROFITS AND RETAIN LONGS. CEMENTS, METALS LOOK POSITIVE ALONG WITH BANKING.
BUY PANTALOON SL 384 TGT 395/398/404
PUNJLLOYD SL 206 TGT 215/217/220
EDUCOMP SL 737 TGT 775/786/800
HINDZIND SL 1179 TGT 1235/1254
ROLTA SL 197 TGT 206/209
