INTRADAY TIPS FOR 12 MARCH 2010

GOOD MORNING!!!

THE KEY INDICIES SPURTED TO THEIR HIGHEST LEVEL IN A MONTH. BANKING AND IT STOCKS ROSE. BUT AUTO STOCKS FELL. THE MARKET WAS VOLATILE. STOCKS MOVED BETWEEN POSITIVE AND NEGATIVE TERRITORY NEAR THE FLAT LINE IN EARLY TRADE. THE SENSEX RECOVERED FROM LOWER LEVEL IN MORNING TRADE AFTER HITTING A FRESH INTRADAY LOW. THE INTRADAY RECOVERY GATHERED STEAM WITH THE SENSEX SURGING TO THE DAY'S HIGH LATER. THE MARKET PARED GAINS AFTER HITTING FRESH INTRADAY HIGH IN EARLY AFTERNOON TRADE. THE MARKET ONCE AGAIN PARED GAINS SOON AGAIN AFTER JUMPING TO DAY'S HIGH IN MID-AFTERNOON TRADE. THE SENSEX SURGED AT THE FAG END OF THE TRADE AS EUROPEAN STOCKS RECOVERED FROM EARLY LOWS. THE FOOD PRICE INDEX ROSE 17.81% IN THE 12 MONTHS TO 27 FEBRUARY 2010, WHILE THE FUEL PRICE INDEX WAS UP 11.38%, THE LATEST GOVERNMENT DATA SHOWED. THE RISE IN THE FOOD PRICE INDEX WAS MARGINALLY LOWER THAN AN ANNUAL RISE OF 17.87% IN THE PREVIOUS WEEK. THE PRIMARY ARTICLES PRICE INDEX WAS UP 15.08% YEAR-ON-YEAR AS ON 27 FEBRUARY 2010. FOOD PRICES WILL BE KEENLY WATCHED IN COMING WEEKS FOR THE SECOND AND THIRD ROUND IMPACTS OF THE RECENT FUEL PRICE RISE. THE WHOLESALE PRICE INFLATION IS UNLIKELY TO TOUCH DOUBLE DIGITS BY END-MARCH, M. GOVINDA RAO, A MEMBER OF THE PRIME MINISTER'S ECONOMIC ADVISORY COUNCIL, SAID ON WEDNESDAY. THE WHOLESALE PRICE INDEX INFLATION, REACHED 8.56 % IN JANUARY 2010. THE GOVERNMENT WILL UNVEIL INDUSTRIAL OUTPUT DATA FOR JANUARY 2010 ON FRIDAY, 12 MARCH 2010. INDUSTRIAL PRODUCTION IS EXPECTED TO RISE MORE THAN 16% IN JANUARY 2010 FROM A YEAR EARLIER. INDUSTRIAL OUTPUT ROSE AT A ROBUST 16.8% IN DECEMBER 2010. A STRONG RISE IN THE OUTPUT, A 7.2% GOVERNMENT GROWTH FORECAST FOR THE 2009-10 FINANCIAL YEAR AND INFLATION WORRIES WOULD MAKE FOR A STRONG CASE FOR THE CENTRAL BANK TO HIKE BENCHMARK RATES LIKE REPO AND REVERSE REPO RATES AT ITS APRIL POLICY REVIEW. MARKET EXPECTATIONS REGARDING A POSSIBLE RATE HIKE IN APRIL REMAIN UNCHANGED, AFTER THE RESERVE BANK OF INDIA (RBI) RESORTED TO A SHARPER THAN EXPECTED 75 BASIS POINT HIKE IN CASH RESERVE REQUIREMENTS FOR BANKS AT ITS JANUARY MEETING. MARKET WATCHERS EXPECT THE RBI'S NEXT MOVE WILL BE TO RAISE BOTH ITS BENCHMARK LENDING AND BORROWING RATES RATES BY AT LEAST 25 BPS EACH TO 5% AND 3.50% RESPECTIVELY. THE MARKET BREADTH, INDICATING THE OVERALL HEALTH OF THE MARKET WAS WEAK.

TODAY MARKET LOOKS VOLATILE AHEAD OF IIP NUMBERS ONE HAS TO STAY CAUTIOUS IN THE MARKET, THERE WOULD BE STOCK SPECIFIC MOVES IN THE MARKET IN THE COMING DAYS TILL THE GUIDANCE IS CLEAR IN TERMS OF Q4 REVENUES ON ADVANCE TAX PAYMENTS. TODAY IF NIFTY TRADES ABOVE 5150 THEN LIKELY TO TAKE NIFTY TO 5177 AND ANY CLOSE ABOVE 5150 IS CONSIDERED TO BE STRONG AND CAN HEAD TOWARDS 5300 LEVELS ON NIFTY AND ON THE DOWNSIDE IF NIFTY TRADES BELOW 5120 THEN LIKELY TO SEE A DIP TILL 5100 AND BREAK AND TRADE BELOW 5097 LIKELY TO TAKE NIFTY TO 5060 AND THEN TO 5002 LEVELS ANY BREAK BELOW 5040 IS CONSIDERED TO BE WEAK ON THE MARKETS AND COULD SLIDE DOWN TO 4944 WHICH WILL ACT AS A KEY SUPPORT FOR NIFTY BREACH ON 4944 WOULD DRAG NIFTY TO MUCH LOWER LEVEL I.E., BELOW 4687. TODAY EDUCATION STOCKS LOOKS GOOD. SUGARS LOOKING WEAK.

BUY ABB SL 867 TGT 882/891/904*
BUY EDUCOMP SL 724 TGT 739/749/760
BUY LICHSG ABOVE 816 SL 809 TGT 823/831/842 (CAN HOLD POSITIONALLY)*
BUY BRFL SL 219 TGT 225/228/230
POSITIONAL CALLS
USHA MARTIN EDUCATION TGT 32/50
GAMMON INFRA TGT 32/50