INTRADAY TIPS FOR 12 AUGUST 2010

GOOD MORNING!!!

MARKET EDGED HIGHER AT THE ONSET OF THE TRADING SESSION AND LOST ITS GROUND LATER TRACKING WEAK ASIAN MARKETS AND THE LATE TRADING DECLINE HAS BEEN SUPPORTED TO THE FULLEST BY THE EUROPE AND US FUTURES WHICH FUTHER STRENGTHENED THE WEAKNESS IN THE MARKETS AND HIT INTRADAY LOWS IN THE AFTERNOON, MARKETS WERE VERY VOLATILE DURING THE ENTIRE DAY THERE HAS BEEN ONLY STOCK SPECIFIC MOVE IN THE MARKET. MARKET BREADTH WAS WEAK IN CONTRAST TO THE POSITIVE BREADTH EARLIER IN THE DAY. MARKETS HAVE ENDED IN A BAD PATCH ENCOURAGING THE BEARS. BEARS HAVE COMPLETELY TAKEN CONTROL OF BULLS AND LEFT NO CHANCE IN THE MARKET FOR ANY SPACE FOR THE BULLS. RBI’S DECISION ON LICENSES FOR THE BANKS TO THE EXISTING FINANCIAL SECTORS HAVE ENCOURAGED BUYING IN THIS COUNTER EVEN IN THE DECLINING MARKETS.

TODAY MARKETS WOULD OPEN NEGATIVE TRACKING THE WORST CLOSING OF AMERICAN AND EUROPEAN MARKETS AND NEGATIVE OPENING OF ASIAN MARKETS WHICH MAY CONTINUE THE DECLINING PHASE IN THE MARKETS. MARKETS MAY COMPLETELY BE IN THE CONTROL OF BEARS AS WE HAVE SEEN ALL THE SECTORAL AS WELL AS STOCKS SPECIFIC COUNTERS HAVE REACHED THE OVER BOUGHT REGEION AND NOW IT’S THE TIME FOR RETRACMENT IN THE MARKETS WE MAY SEE STOCKS TO COME DOWN TO FURTHER MOVE UP. WE MAY SEE TATA STEEL NUMBERS TO DISAPPOINT MARKETS TODAY THIS WILL ADD SOME MORE PRESSURE IN THE MARKETS NOT ONLY THIS BUT ALSO THE IIP NUMBERS WHICH ARE EXPECTED TO BE MUCH BELOW THE DOUBLE DIGIT WHICH IS VERY NEGATIVE WHEN COMPARED TO THE EARILER DATA. TODAY MARKETS WOULD OPEN NEGATIVE AND CONTINUE TO REMAIN IN THE NEGATIVE ZONE, IF NIFTY TRADES BELOW 5400 WE MAY SEE NIFTY TO DIRECTLY COME TO 5350 AND BREAK BELOW THIS LEVEL WE MAY SEE NIFTY TO FURTHER WEAKEN AND COME DOWN TO 5300 LEVELS AND ANY TRADE BELOW 5300 WOULD DRAGE NIFTY TO 5240 LEVELS IN A VERY SHORT SPAN OF TIME. WE SUGGEST YOU TO STAY AWAY FROM LONGS FOR THE DAY AS THE NEGATIVE OPENING WOULD BE SUPPORTED IN THE LATE TRADE BY IIP NUMBERS SO STAY CAUTIOUS AND DON’T TAKE LONG TRADES WHEN MARKET IS RETRACING EVERY RISE WOULD BE A SELLING OPPORTUNITY TAKING 5400 AS STOPLOSS.

BUY SREI SL 90 TGT 96/98/100 (SHORT TERM 110)*
BUY TATA COMMUNICATION SL 322 TGT 336/345/351 (SHORT TERM 370)
SELL DCHL 131 TGT 128.6/126.5/125
SELL TATA STEEL SL 528 TGT 510/498/489 (SHORT TERM 450)
SELL ABAN SL 863 TGT 845/831/821
POSITIONAL TRADES
BUY M&M FINANCIALS TGT 750/1000
BUY LIC HSG TGT 1200/1600
BUY RELIANCE CAPITAL 850/920
BUY HPCL TGT 525/588
BUY BPCL TGT 775/875
SELL ADANI ENTERPRISES SL 836 TGT 550/515
SELL GAIL TGT 400 (SHORT TERM)

NOTE:

1. ONE CAN RE-INITIATE BUY IN INTRADAY BUY CALLS IF IT AGAIN MOVES ABOVE STOPLOSS, PREFERABLY TAKE ABOVE RECOMMENDED BUY CALLS ON INITIAL DECLIEN ABOVE STOPLOSS

2. IN POSITIONAL TRADES SHORTS ARE TO BE TAKEN IN FUTURES