GOOD MORNING!!!
MARKETS CAME OFF FROM THE PSYCHOLOGICAL 16000 MARK IN A VERY VOLATILE SESSION YESTERDAY WITH BANKING, CAPITAL GOODS, FMCG, HEALTHCARE AND POWER STOCKS FELL. THE MARKET BREADTH TURNED NEGATIVE IN CONTRAST TO A STRONG BREADTH EARLIER IN THE DAY. FOREIGN FUNDS HAVE PRESSED HEAVY SALES OF INDIAN STOCKS IN EARLY 2010. AS PER DATA FROM THE STOCK EXCHANGES, FOREIGN INSTITUTIONAL INVESTORS (FIIS) SOLD STOCKS WORTH A NET RS 11141.63 CRORE IN CALENDAR 2010 SO FAR (TILL TUESDAY, 9 FEBRUARY 2010). IN CONTRAST, DOMESTIC INSTITUTIONAL INVESTORS (DIIS) HAVE BOUGHT EQUITIES WORTH A NET RS 14687.43 CRORE THIS YEAR SO FAR. COMING BACK TO TODAY'S TRADE AND THE MARKET WAS EXTREMELY VOLATILE. THE MARKET PARED GAINS SOON AFTER A FIRM START TRIGGERED BY HIGHER ASIAN STOCKS. THE MARKET SLIPPED INTO THE RED IN EARLY TRADE AS US INDEX FUTURES FELL. THE MARKET CUT LOSSES IN MORNING TRADE. IT MOVED BETWEEN THE POSITIVE AND NEGATIVE TERRAIN AFTER RECOVERING SHARPLY FROM THE INTRADAY LOWS IN MID-MORNING TRADE. THE MARKET ONCE AGAIN CUT LOSSES AFTER WEAKENING IN EARLY AFTERNOON TRADE. THE MARKET REGAINED POSITIVE ZONE IN AFTERNOON TRADE. IT REVERSED GAINS TO HIT FRESH INTRADAY LOW IN LATE TRADE. INDUSTRIAL OUTPUT DATA FOR THE MONTH OF DECEMBER 2009 WHICH IS DUE ON FRIDAY, 12 FEBRUARY 2010, IS EXPECTED TO RISE 12% IN DECEMBER 2009 FROM A YEAR EARLIER. A ROBUST FIGURE, AHEAD OF THE 26 FEBRUARY 2010 ANNUAL BUDGET, WOULD ALSO ALLOW THE FEDERAL GOVERNMENT, FIGHTING A 16-YEAR HIGH FISCAL DEFICIT, TO CUT THE DEFICIT BY PHASING OUT FISCAL STIMULUS. A STRONG RISE WOULD ALSO HELP THE CENTRAL BANK TO FOCUS BETTER ON CONTAINING INFLATION BY RAISING INTEREST RATES IN COMING MONTHS. THE INDUSTRIAL OUTPUT ROSE 11.7% IN NOVEMBER 2009.
TODAY MARKETS LOOK VOLATILE. MARKETS ARE VERY NARROWLY RANGE BOUND TILL THE LEVELS ON THE INDICES MENTIONED BELOW BREACHES. THE TREND ON THE NIFTY FOR INTRADAY IS DECIDED ONLY IF THE FOLLOWING LEVELS IN NIFTY ARE BREACHED. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 4740 THEN LIKELY TO SEE A DIP TILL 4702 AND BREACH BELOW THIS LEVEL WOULD DRAG NIFTY TO 4620 LEVELS IN NIFTY IN A VERY SHORT TIME. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 4768 THEN LIKELY TO SEE 4824 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 4865. NIFTY HAS LOT OF WEAKNESS AND ON A BEARISH OUTLOOK SO ONE IS ADVISED TO TRADE LESS AND AVOID TAKING LONGS IF IT IS BELOW 4768 AND TAKE A SHORT POSITION IN A WEAK STOCK AND LONG POSIITON IN STRONG STOCK.
POSITIVE STOCKS ARE MCDOWEL, HEROHONA, JP, GRASIM BUY THEM WHEN MARKET OPENS AS MARKET LOOKS POSITIVE ON THE OPENING AND TAKE THE BELOW RECOMMENDATIONS ONLY IF THE STOCK TRADES IN THE NEGATIVE ZONES UNTIL THEN PLEASE AVOID SHORTING.
BUY NEYVELLIGNITE SL 150.7 TGT 154/156/159
ALL SELL CALLS TO BE INITIATED ONLY BELOW CLOSING PRICE
SELL TATASTEELSL 529 TGT 512/504
SELL ICICI SL 806 TGT 794/787/779
SELL DLF SL 306 TGT 296/291
SELL PNB SL 876 TGT 857/850/845
SELL TATAPOWER SL 1281 TGT 1252/1246/1241
SELL SUNPHARMA SL 1515.1 TGT 1487/1471/1465
TODAY MARKETS LOOK VOLATILE. MARKETS ARE VERY NARROWLY RANGE BOUND TILL THE LEVELS ON THE INDICES MENTIONED BELOW BREACHES. THE TREND ON THE NIFTY FOR INTRADAY IS DECIDED ONLY IF THE FOLLOWING LEVELS IN NIFTY ARE BREACHED. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 4740 THEN LIKELY TO SEE A DIP TILL 4702 AND BREACH BELOW THIS LEVEL WOULD DRAG NIFTY TO 4620 LEVELS IN NIFTY IN A VERY SHORT TIME. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 4768 THEN LIKELY TO SEE 4824 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 4865. NIFTY HAS LOT OF WEAKNESS AND ON A BEARISH OUTLOOK SO ONE IS ADVISED TO TRADE LESS AND AVOID TAKING LONGS IF IT IS BELOW 4768 AND TAKE A SHORT POSITION IN A WEAK STOCK AND LONG POSIITON IN STRONG STOCK.
POSITIVE STOCKS ARE MCDOWEL, HEROHONA, JP, GRASIM BUY THEM WHEN MARKET OPENS AS MARKET LOOKS POSITIVE ON THE OPENING AND TAKE THE BELOW RECOMMENDATIONS ONLY IF THE STOCK TRADES IN THE NEGATIVE ZONES UNTIL THEN PLEASE AVOID SHORTING.
BUY NEYVELLIGNITE SL 150.7 TGT 154/156/159
ALL SELL CALLS TO BE INITIATED ONLY BELOW CLOSING PRICE
SELL TATASTEELSL 529 TGT 512/504
SELL ICICI SL 806 TGT 794/787/779
SELL DLF SL 306 TGT 296/291
SELL PNB SL 876 TGT 857/850/845
SELL TATAPOWER SL 1281 TGT 1252/1246/1241
SELL SUNPHARMA SL 1515.1 TGT 1487/1471/1465
