GOOD MORNING!!!
INDICES HIT THEIR HIGHEST LEVELS AFTER THE BUDGET, OUTLOOK OF MARKET LOOKS STRONG ON HEAVY BUYING FROM FIIS. WITH THE RESLUTS AHEAD MARKET LOOKS ENCOURAGING AS Q4 ADVANCED TAX FIGURES OF TOP COMPANIES INDICATED GOOD RESULTS NOT ONLY THE BUDGET BUT ALSO THE ADVANCED TAX FIGURES ALONG WITH GLOBAL CREDIT RATING AGENCY STANDARD & POORS LASK WEEK RATING FROM NEGATIVE TO STABLE ALSO BOOSTED THE SENTIMENT OF THE MARKET. METALS CONSUMER DURABLES AND AUTO STOCKS LED THE GAINS. THOUGH MARKET BREADTH REMAINS NEGATIVE MARKET HAS BREACHED ALL THE BARRIERS AND CLOSED IN A POSITIVE ZONE. THE NEXT TRIGGER FOR THE MARKET IS FORECAST OF THE SOUTHWEST MANSOON FOR 2010, GOOD RAINS AFTER THE LAST YEARS DROUGHT WILL BOOST FARM OUTPUT AND RURAL INCOMES. BUT IF MANSOON FORECAST TURNS NEGATIVE THEN IT WOULD PUT INFLATIONARY PRESSURE WHICH WILL DEFINITELY HAMPER THE CURRENT STRONG ECONOMIC REBOUNDAND WILL ALSO ADD PRESSURE ON RESERVE BANK TO INCREASE THE INTREST RATES TO CONTAIN THE INFLATION, WHICH WILL TAKE AWAY THE EXCESS LIQUIDITY FROM THE SYSTEM AND WILL ALSO LEAD TO THE SLOWDOWN.
TODAY MARKETS WOULD OPEN POSITIVE. IF NIFTY TRADES ABOVE 5300 THEN LIKELY TO MOVE UP TO 5340 AND IF NIFTY TRADES ABOVE THIS POINT THEN NIFTY LIKELY TO TEST 5400 LEVELS AND ANY CLOSE ABOVE 5350 WOULD TAKE NIFTY TO NEW HIGHS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5240 THEN LIKELY TO COME DOWN TO 5205 LEVELS AND BREAK BELOW 5200 WOULD TAKE NIFTY TO 5160 ANY CLOSE BELOW 5240 WOULD BE CONSIDERED WEAK FOR NIFTY ONE SHOULD GO SHORT ONLY BELOW 5200 AND ONE IS ADVISED TO EXIT LONGS BELOW 5240 ON CLOSING BASIS. ONE CAN HOLD THIER LONG POSITIONS AS LONG AS NIFTY IS HOLDING 5200 LEVELS, CONSERVATIVE TRADERS CAN EXIT LONG POSITIONS IF NIFTY CLOSES BELOW 5240 LEVELS.
BUY AMTEK AUTO SL 185.4 TGT 193.5/198/203
BUY BANK INDIA SL 319 TGT 327/329/332
BUY UTTAM GALVA STEEL SL 110 TGT 122/125/127
BUY EKC SL 122 TGT 125/127/129
BUY KFA SL SL 47.40 TGT 51.50/52.9/55
POSITIONAL TRADES
BUY SCI CMP 154.75 TGT 180/190/200
BUY ANSAL PROPERTIES CMP 73.45 TGT 81/84/89
BUY EXIDE CMP 116.55 TGT 125/128/136
BUY MSP STEEL & POWER CMP 36.20 TGT 44/50/59
INDICES HIT THEIR HIGHEST LEVELS AFTER THE BUDGET, OUTLOOK OF MARKET LOOKS STRONG ON HEAVY BUYING FROM FIIS. WITH THE RESLUTS AHEAD MARKET LOOKS ENCOURAGING AS Q4 ADVANCED TAX FIGURES OF TOP COMPANIES INDICATED GOOD RESULTS NOT ONLY THE BUDGET BUT ALSO THE ADVANCED TAX FIGURES ALONG WITH GLOBAL CREDIT RATING AGENCY STANDARD & POORS LASK WEEK RATING FROM NEGATIVE TO STABLE ALSO BOOSTED THE SENTIMENT OF THE MARKET. METALS CONSUMER DURABLES AND AUTO STOCKS LED THE GAINS. THOUGH MARKET BREADTH REMAINS NEGATIVE MARKET HAS BREACHED ALL THE BARRIERS AND CLOSED IN A POSITIVE ZONE. THE NEXT TRIGGER FOR THE MARKET IS FORECAST OF THE SOUTHWEST MANSOON FOR 2010, GOOD RAINS AFTER THE LAST YEARS DROUGHT WILL BOOST FARM OUTPUT AND RURAL INCOMES. BUT IF MANSOON FORECAST TURNS NEGATIVE THEN IT WOULD PUT INFLATIONARY PRESSURE WHICH WILL DEFINITELY HAMPER THE CURRENT STRONG ECONOMIC REBOUNDAND WILL ALSO ADD PRESSURE ON RESERVE BANK TO INCREASE THE INTREST RATES TO CONTAIN THE INFLATION, WHICH WILL TAKE AWAY THE EXCESS LIQUIDITY FROM THE SYSTEM AND WILL ALSO LEAD TO THE SLOWDOWN.
TODAY MARKETS WOULD OPEN POSITIVE. IF NIFTY TRADES ABOVE 5300 THEN LIKELY TO MOVE UP TO 5340 AND IF NIFTY TRADES ABOVE THIS POINT THEN NIFTY LIKELY TO TEST 5400 LEVELS AND ANY CLOSE ABOVE 5350 WOULD TAKE NIFTY TO NEW HIGHS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5240 THEN LIKELY TO COME DOWN TO 5205 LEVELS AND BREAK BELOW 5200 WOULD TAKE NIFTY TO 5160 ANY CLOSE BELOW 5240 WOULD BE CONSIDERED WEAK FOR NIFTY ONE SHOULD GO SHORT ONLY BELOW 5200 AND ONE IS ADVISED TO EXIT LONGS BELOW 5240 ON CLOSING BASIS. ONE CAN HOLD THIER LONG POSITIONS AS LONG AS NIFTY IS HOLDING 5200 LEVELS, CONSERVATIVE TRADERS CAN EXIT LONG POSITIONS IF NIFTY CLOSES BELOW 5240 LEVELS.
BUY AMTEK AUTO SL 185.4 TGT 193.5/198/203
BUY BANK INDIA SL 319 TGT 327/329/332
BUY UTTAM GALVA STEEL SL 110 TGT 122/125/127
BUY EKC SL 122 TGT 125/127/129
BUY KFA SL SL 47.40 TGT 51.50/52.9/55
POSITIONAL TRADES
BUY SCI CMP 154.75 TGT 180/190/200
BUY ANSAL PROPERTIES CMP 73.45 TGT 81/84/89
BUY EXIDE CMP 116.55 TGT 125/128/136
BUY MSP STEEL & POWER CMP 36.20 TGT 44/50/59
