GOOD MORNING!!!
ON THURSDAY KEY BENCHMARK SURGED AS FIRM ASIAN STOCKS AND GAINS IN US INDEX FUTURES BOOSTED SENTIMENT. THE GOVERNMENT'S DECISION TO EASE FOREIGN INVESTMENT RULES ALSO UNDERPINNED SENTIMENT. METAL, REALTY, AUTO AND BANKING STOCKS VAULTED. THE MARKET BREADTH WAS STRONG. THE MARKET PARED GAINS IN EARLY AFTERNOON TRADE AFTER A ROUSING START TRIGGERED BY FIRM ASIAN STOCKS. HOWEVER, BUYING AT LOWER LEVELS ONCE AGAIN PROPELLED STOCKS HIGHER IN AFTERNOON TRADE. EXPORTS IN JANUARY ROSE 11.5% TO $14.3 BILLION, FOREIGN DIRECT INVESTMENT IN DECEMBER WENT UP AN ANNUAL 13% TO $1.5 BILLION. THE UNION CABINET TODAY EASED FOREIGN INVESTMENT RULES. FOREIGN INVESTMENT PROMOTION BOARD (FIPB) CAN APPROVE INVESTMENTS OF UP TO RS 1200 CRORE, MEANWHILE, THE DATA RELEASED BY THE GOVERNMENT TODAY SHOWED THAT ANNUAL FOOD INFLATION ROSE FOR THE THIRD STRAIGHT WEEK. THE FOOD PRICE INDEX ROSE 17.94% IN THE 12 MONTHS TO 30 JANUARY 2010, HIGHER THAN AN ANNUAL RISE OF 17.56% IN THE PREVIOUS WEEK. THE FUEL PRICE INDEX ROSE 10.44 % AND PRIMARY ARTICLES PRICE INDEX ROSE 15.75 %. SHARES OF FIRMS WHOSE FORTUNES ARE LINKED TO ORDERS FROM INDIAN RAILWAYS ROSE CONTAINER CORPORATION OF INDIA, BEML, KALINDEE RAIL NIRMAN, STONE INDIA, TEXMACO AND TITAGARH WAGONS ROSE BY BETWEEN 2.27% TO 16.19%.
TODAY MARKETS MAY OPEN FLAT AND RANGE BOUND. IF NIFTY TRADES ABOVE 4865 THEN LIKELY TO GO UP TO 4909 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 4944 WHICH IS CONSIDERED TO BE VERY CRUCIAL LEVEL FOR THE MARKET TO TURN BULLISH ANY CLOSE ABOVE 4944 IS CONSIDERED TO BE BULLISH ONE IS ADVISED TO STAY IN THE MARKET ON INTRADAY TERMS AND NOT TO INVEST MORE THAN 30% OF THEIR CAPITAL AS MARKET HAS GOOD DOWNSIDE REMAINING. NEGATIVE SIDE IN THE MARKETS ON INTRADAY BASIS IF NIFTY TRADES BELOW 4825 THEN LIKELY TO SEE NIFTY TO 4783 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 4740 AND ANY CLOSING BELOW 4740 IS CONSIDERED TO BE A VERY WEAK. WE MAY HAVE GOOD NUMBER OF BAD NEWS COMING IN THE BUDGET SO ONE IS ADVISED NOT TO FOLLOW THIS UPSIDE MOVE ON POSITIONAL TERMS AS THIS MAY NOT LAST LONGER AND LIKELY TO DRAG NIFTY TO 4400 LEVELS IN A VERY SHORT TERM
BUY TITAGARH WAGONS SL 454 TGT 474/488/500
BUY HINDOIL EXPLORATION SL 263 TGT 284/294/300
BUY RPOWER SL 139 TGT 145/147
BUY IBREAL SL 172 TGT 183/186/189
POSITIONAL TRADES
BUY KAUSHALYA INFRA @ 22.45 TGT 29
BUY KIRLOSKAR FERROUS INDS@ 31.4 TGT 40
BUY ELECTROSTEEL CASTINGS @45.55 TGT 57
BUY RENAISSANCE JEWELLERY LTD @ 67.85 TGT 85
BUY HARRISON MALAYALAM @112.75 TGT 170 SL 96
TODAY MARKETS MAY OPEN FLAT AND RANGE BOUND. IF NIFTY TRADES ABOVE 4865 THEN LIKELY TO GO UP TO 4909 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 4944 WHICH IS CONSIDERED TO BE VERY CRUCIAL LEVEL FOR THE MARKET TO TURN BULLISH ANY CLOSE ABOVE 4944 IS CONSIDERED TO BE BULLISH ONE IS ADVISED TO STAY IN THE MARKET ON INTRADAY TERMS AND NOT TO INVEST MORE THAN 30% OF THEIR CAPITAL AS MARKET HAS GOOD DOWNSIDE REMAINING. NEGATIVE SIDE IN THE MARKETS ON INTRADAY BASIS IF NIFTY TRADES BELOW 4825 THEN LIKELY TO SEE NIFTY TO 4783 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 4740 AND ANY CLOSING BELOW 4740 IS CONSIDERED TO BE A VERY WEAK. WE MAY HAVE GOOD NUMBER OF BAD NEWS COMING IN THE BUDGET SO ONE IS ADVISED NOT TO FOLLOW THIS UPSIDE MOVE ON POSITIONAL TERMS AS THIS MAY NOT LAST LONGER AND LIKELY TO DRAG NIFTY TO 4400 LEVELS IN A VERY SHORT TERM
BUY TITAGARH WAGONS SL 454 TGT 474/488/500
BUY HINDOIL EXPLORATION SL 263 TGT 284/294/300
BUY RPOWER SL 139 TGT 145/147
BUY IBREAL SL 172 TGT 183/186/189
POSITIONAL TRADES
BUY KAUSHALYA INFRA @ 22.45 TGT 29
BUY KIRLOSKAR FERROUS INDS@ 31.4 TGT 40
BUY ELECTROSTEEL CASTINGS @45.55 TGT 57
BUY RENAISSANCE JEWELLERY LTD @ 67.85 TGT 85
BUY HARRISON MALAYALAM @112.75 TGT 170 SL 96
