GOOD MORNING!!!
LAST DAY MARKETS STARTED OFF IN GREEN DESPITE WEAKNESS PERSISTING EVEN AFTER WEAKNESS IN ITS OTHER REGIONAL PEERS AND MARKETS ENDED IN THE POSITIVE TERRAIN. THE FAVOURABLE OUTCOME OF THIRD GENERATION (3G) MOBILE SPECTRUM AUCTION FOR THE GOVERNMENT AND THE CENTRE'S DECISION TO DOUBLE THE PRICE OF NATURAL GAS PRODUCED BY THE STATE-OWNED ONGC AND OIL INDIA TO $4.20 PER UNIT LIFTED INVESTOR SENTIMENT IN TRADE. BESIDES THIS, 36% INCREASE IN THE COUNTRY'S EXPORTS IN THE MONTH OF APRIL 2010 TO $16.9 BILLION OVER THE YEAR AGO LEVEL ALSO PROVIDED SOME BREATHER TO THE BULLS AFTER YESTERDAY'S BLOODBATH. PSU’S, OIL AND GAS AND HEALTHCARE WERE OUTPERFORMERS IN THE LAST DAY AND ON THE OTHER HAND, REALTY, AUTO AND CONSUMER DURABLES STOCKS OBSERVED HIGH SELLING PRESSURE FROM INVESTORS. STOCKS PLUNGED ALONG WITH COMMODITIES OVER EUROPE DEBT CRISIS, EUROPE DEBT CRISIS WHICH STARTED LAST WEEK HAS INTENSIFIED MUCH AND BATTERED ALL THE WORLD MARKETS. REPORTS ON THE STRENGTH OF THE US ECONOMIC RECOVERY AND EUROPEAN LEADERS STRUGGLED TO CONTAIN THE REGIONS DEBT CRISIS HAS WEAKEND THE SENTIMENT OF INVESTORS ALL OVER THE WORLD AND LED A MAJOR DOWNFALL OF THE YEAR IN US MARKETS. US MARKETS TUMBLED AND GOT COMPLETELY DRAINED, THIS IS THE FIRST BIGGEST DOWNFALL IN THE LAST ONE YEAR.
TODAY MARKETS WOULD OPEN GAP DOWN OF AROUND 100 POINTS. NIFTY INITIALLY MAY OPEN GAP DOWN AND DRAG NIFTY TO 4850 AND THEN TO 4800 LEVELS AND THERE IS EVERY CHANCE THAT NIFTY WOULD SLIDE DOWN TO 4760 LEVELS SO BE CAREFUL THAT NIFTY MAY HARDLY TAKE ANY RETRACEMENT AT 4800 LEVELS EVEN IF IT HOLDS IT MAY NOT BE FOR A LONG TIME ONE IS ADVISED TO STAY CAUTIOUS. MARKET MAY BE DOWN BY 150 TO 200 POINTS SO BE CAREFUL AND DON’T INITIATE LONGS AT ANY COST UNLESS AND UNTIL YOU SEE A CLEAR PICTURE OF RECOVERY. ONE IS ADVISED TO GO LONG ONLY ABOVE 4900.
ALMOST ALL STOCKS WOULD COME DOWN BY 3 TO 7% IN THE OPENING BELL SO NO INTRADAY RECOS ON SHORT SIDE.
STOCKS TO WATCH FOR BUYING WHEN MARKET SLIDES WITH STRICT STOPLOSS AS DAY LOW: ONGC, HINDPETRO, ENIL, IOC, BPCL, OIL
NOTE: WHEN YOU BUY ABOVE STOCKS MAKE SURE YOU PLACE STOPLOSS ORDER AT DAY LOW AND WHEN IT BOUNCES BACK AGAIN TAKE LONG POSITION AND KEEP THE STOPLOSS AS DAY LOW. DON’T WAIT IF IT HITS THE STOPLOSS JUST EXIT.
