KEY INDICES EDGED LOWER ON FRIDAY IN THE OPENING TRACKING ASIAN STOCKS WHICH HAVE EDGED LOWER IN TRADE BUT WITH RELIANCE PULLING BACK MARKETS RECOVERED FROM EARLY LOSSES. MARKET MOVED IN A NARROW RANGE BOUND AND TRADING WAS VOLATILE TILL MID-AFTERNOON MARKET STARTED DECLINING FAST IN THE LATE TRADE, MARKET HITS FRESH INTRADAY LOWS AND CLOSED IN LOWER LOWS, FMCG, CAPITAL GOODS AND IT STOCKS FELL THE MOST. THOUGH THERE WAS HUGE SELLING PRESSURE AT THE END OF THE TRADING SESSION FII'S CONTINUE TO MOP UP INDIAN STOCKS, THEY HAVE BOUGHT SHARES WORTH A NET OFRS. 8109.64 CRORES IN JULY, THE CONTINUES SELLING OF DII'S HAS BEEN ABSORBED COMPLETELY BY FII'S, TILL NOW DII'S HAVE SOLD 6193.15 CRORES IN JULY. IN THE MONTH OF JUNE FII'S HAVE PUMPED IN 7713.97 CRORES AND DII'S HAVE SOLD 4777.05 CRORES. THE SUSTAINED AND CONTINUOUS BUYING IN THE MARKETS BY FII'S HAVE TRIGGERED THE MARKETS TO THE FRESH HIGHS OF LAST ONE AND HALF YEARS.
TODAY MARKETS WOULD BE RANGE BOUND AND MAY TRIGGER UPSIDE INITIALLY ON EXTERNAL FACTORS BUT ONE HAS TO REMEMBER THAT MARKETS ARE ALMOST AT THEIR PEAKS AND IS EXPECTED TO CORRECT FROM HERE-ON OR IT WILL CONSOLIDATE AND THEN MOVE FORWARD. IF MARKETS MOVE FROM HERE ON WITHOUT RETRACING OR CORRECTING THEN IT IS A SIGN OF CAUTION AND MAY CRACK DOWN WITH FORCE ANY TIME AND IS NOT A HEALTHY MOVE IN THE MARKET SO ONE HAS TO CONSIDER THESE FACTORS AND STAY CAUTIOUS MARKETS. ONE MORE IMPORTANT NOTE IS ON THE CORPORATEFRONT, THE COMBINED NET PROFIT OF TOTAL OF 1025 COMPANIES FELL 8.5% TO 48549 CRORES ON 22.6% RAISE IN SALES TO 570313 CRORES IN Q1 JUNE 2010 OVER Q1 JUNE 2009. ONE VERY POSITIVE POINT IN THE MARKETS IS GOOD MANSOONS WHICH WERE RUNNING IN DEFICIT ARE NOW EXPECTED TO BE 102% OF THE LONG-PERIOD AVERAGE. TODAY IF NIFTY TRADES ABOVE 5390 THEN LIKELY TO MOVE UP TO 5411 AND ANY BREAK AND TRADE ABOVE 5411 IS LIKELY TO MAKE AN UPMOVE TO 5450 LEVELS AND ON THE DOWNSIDE IF NIFTY TRADES BELOW 5370 THEN WILL COME DOWN TO 5335 AND ANY BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5254 LEVELS AND NIFTY MAY TAKE STRONG SUPPORT AT 5240 LEVELS.
BUY HCC SL 134 TGT 138/140/145BUY REDIGTON (I) SL 415 TGT 435/447/468*
BUY STRIDES ARCOLAB SL 362 TGT 371/376/385*
POSITIONAL TRADES
BUY GATI CMP 84.5 TGT 100
