GOOD MORNING!!!
THE KEY BENCHMARK INDICES SWAYED BETWEEN GAINS AND LOSSES, THE MARKET WAS VOLATILE AS TRADERS ROLLED OVER POSITIONS IN DERIVATIVES SEGMENT FROM THE MARCH 2010 SERIES TO THE APRIL 2010 SERIES AHEAD OF THE EXPIRY. THE MARKET PARED GAINS SOON AFTER AN INITIAL RALLY. THE MARKET FURTHER TRIMMED GAINS IN MORNING TRADE, AFTER MOVING A IN A NARROW RANGE IN MORNING TRADE. THE MARKET ONCE AGAIN MOVED IN A NARROW RANGE IN MID-MORNING TRADE. THE KEY BENCHMARK INDICES RECOVERED FROM LOWER LEVEL AFTER ERASING ALMOST THE ENTIRE INTRADAY GAINS. HOWEVER, THE INTRADAY RECOVERY PROVED SHORT-LIVED. THE MARKET SLIPPED INTO THE RED IN AFTERNOON TRADE. THE KEY BENCHMARK INDICES REGAINED POSITIVE ZONE IN MID-AFTERNOON TRADE. PHARMA STOCKS ROSE AND REALTY SHARES WITNESSED SELLING PRESSURE. OVERALL SENTIMENT ON SECTORIAL INDICIES WERE POSITIVE WITH NINE OUT OF 13 SECTORAL INDICES CLOSING IN GREEN. BUT, THE MARKET BREADTH, INDICATING THE OVERALL HEALTH OF THE MARKET, WAS NEGATIVE COMPARED WITH A STRONG BREADTH IN EARLY TRADES ON INTRADAY TERMS. ROLL-OVER IN INDIVIDUAL STOCKS, GTL, NATIONAL ALUMINUM COMPANY, RELIANCE POWER, GTL INFRASTRUCTURE, AND BHARTI AIRTEL, HAVE WITNESSED HIGH ROLLOVER. BUT ROLLOVER WAS LOW IN REC, DISH TV, ESSAR OIL, ITC AND WELSPUN-GUJARAT STAHL ROHREN TILL MONDAY. FOLLOWING THE PASSAGE OF THE LANDMARK HEALTHCARE BILL, MULTINATIONAL FIRMS MAY NOW BE WILLING TO PUT MORE MONEY TO BUY INTO INDIA'S FORMULATIONS COMPANIES. THE HEALTHCARE BILL IS THE US GOVERNMENT'S ATTEMPT TO REDUCE HEALTHCARE COSTS. THE OBAMA ADMINISTRATION WOULD MAKE A NEARLY $1-TRILLION COMMITMENT IN TAXPAYER MONEY OVER THE NEXT DECADE TO HELP AN ESTIMATED 32 MILLION UNINSURED AMERICANS GET HEALTH COVERAGE. THE BILL ALSO PROMOTES USE OF GENERIC DRUGS THAT ARE OFTEN ONE-TENTH THE PRICE OF THE ORIGINAL VERSION, BUT HAS THE SAME IMPACT. ANALYSTS OPINE THAT THIS WOULD TRANSLATE INTO HUGE OPPORTUNITIES TO INDIAN COMPANIES AS INDIA HAS THE LARGEST NUMBER OF US FOOD AND DRUG ADMINISTRATION APPROVED PHARMA PLANTS OUTSIDE THE US. INDIA WAS AMONG THE 14 COUNTRIES NAMED IN THE CONGRESS DISCUSSION THAT CAN OFFER LOW-COST DRUGS TO ACHIEVE LOWER HEALTHCARE COSTS
TODAY MARKET MAY OPEN FLAT WITH HIGH VOLATALITY ON THE FUTURES CONTRACT SETTLEMENT CLOSING FOR THE MONTH OF MARCH. TODAY IF NIFTY TRADES BELOW 5207 ONE CAN TAKE UP SHORT POSITION FOR A TARGET OF 5171 AND THEN TO 5140 AND ANY CLOSING BELOW 5200 IS CONSIDERED TO BE WEAK AND LIKELY TO TEST 5105 LEVELS TOO. ON THE UPSIDE IF NIFTY TRADES ABOVE 5261 LEVELS THEN WE MAY SEE NIFTY TO HEAD TOWARDS 5300 AND BREAK ABOVE THIS POINT WOULD LEAD NIFTY TO FURTHER NEW HIGHS OF THE YEAR AND ONE CAN REMAIN LONG IF NIFTY CLOSES ABOVE 5300. IF NIFTY CLOSES ABOVE 5261 THEN ONE IS ADVISED NOT TO STAY SHORT.
TODAY MARKET MAY OPEN FLAT WITH HIGH VOLATALITY ON THE FUTURES CONTRACT SETTLEMENT CLOSING FOR THE MONTH OF MARCH. TODAY IF NIFTY TRADES BELOW 5207 ONE CAN TAKE UP SHORT POSITION FOR A TARGET OF 5171 AND THEN TO 5140 AND ANY CLOSING BELOW 5200 IS CONSIDERED TO BE WEAK AND LIKELY TO TEST 5105 LEVELS TOO. ON THE UPSIDE IF NIFTY TRADES ABOVE 5261 LEVELS THEN WE MAY SEE NIFTY TO HEAD TOWARDS 5300 AND BREAK ABOVE THIS POINT WOULD LEAD NIFTY TO FURTHER NEW HIGHS OF THE YEAR AND ONE CAN REMAIN LONG IF NIFTY CLOSES ABOVE 5300. IF NIFTY CLOSES ABOVE 5261 THEN ONE IS ADVISED NOT TO STAY SHORT.
FEW POSITIVE SCRIPS: AUROBINDO PHARMA, BANK OF BARODA, LANCO INFRA, NAGARJUNA CON, PIRAMAL HEALTH, PETRONET
NEGATIVE SCRIPS: FINANTECH, IDEA, POLARIS AND SCI
BUY TATA ELXSI (I) LTD SL 329.9 TGT 348/374/400 (POSITIONAL)
BUY AGRO DUTCH INDS SL 19.9 TGT 21/21.90/22.7
BUY HANUNG SL 194 TGT 209/217/234
BUY VAKRANGEE SL 101 TGT 110/114/120
BUY CAIRN SL 288 TGT 300/305/309
APIL SL 596 TGT 614/620/628
BUY AGRO DUTCH INDS SL 19.9 TGT 21/21.90/22.7
BUY HANUNG SL 194 TGT 209/217/234
BUY VAKRANGEE SL 101 TGT 110/114/120
BUY CAIRN SL 288 TGT 300/305/309
APIL SL 596 TGT 614/620/628
