GOOD MORNING!!!
INDICES SURGED YET AGAIN ON A STRONG NOTE, BULLS HAVE TAKEN TOTAL CONTROL OF THE MARKETS. MARKETS SURGED TO THE NEW HIGHS HITTING TWO AND HALF YEARS HIGH EXTENDING THE GAINS OF WEDNESDAY. ANOTHER IMPORTANT ASPECT IS, EASING OF FOOD AND FUEL INFLATION WHICH HAS EASED THE PRESSURE ON CENTRAL BANK MONETORY POLICY, WHICH HAS ADDED SOME MORE ESSENCE TO THE MARKETS UP MOVE. MARKET BREADTH WAS POSITIVE. BANKING AND FINANCIAL SHARES RALLIED ON FRESH BUYING THERE WERE LOT OF FRONT END COUNTERS LIKE HDFC, ICICI BANK, ITC, UNION BANK, CANARA BANK, ITC BAJAJ AUTO REGISTERED THEIR LIFE HIGHS. ALL-IN-ALL WE HAVE SEEN SUSTAINED AND CONTINUAL BUYING FROM FOREIGN INSTITUTIONAL INVESTORS WHICH IS TRIGGERING THE MARKETS TO HIGHER HIGHS.
TODAY MARKETS WOULD OPEN WEAK TRACKING NEGATIVE US AND EUROPEON CLOSING ALONG WITH WEAK ASIAN OPENING. ONE HAS TO BEAR IN MIND THAT AS LONG AS FOREIGN FUNDS ARE BUYING THERE IS NO POINT WERE WE CAN SEE MARKETS TO CRACK DOWN ONE HAS TO BE VERY CAREFUL IN THIS PHASE AND STAY ON CASH. IF MARKET SEE FURTHER UPSIDE THEN WE WOULD SEE THERE WOULD LOT OF SHORT COVERING TO TAKE PLACE WHICH WOULD GUIDE THE MARKET TO FURTHER NEW HIGHS. THOUGH THE MARKET LOOKS TO BE ON THE OVER BOUGHT REGION IN THE SHORT TERM BUT THE LONG TERM OUTLOOK REMAINS VERY STRONG. IF NIFTY TRADES BELOW 5520 THEN LIKELY TO COME DOWN TO 5494 LEVELS AND ANY BREAK BELOW THIS LEVEL WOULD DRAG NIFTY FURTHER TO 5464 LEVELS ANY CLOSE BELOW 5437 IS A WEAK CLOSING AND ONE CAN INITIATE FRESH SHORTS BELOW THIS LEVEL. ON THE POSITIVE SIDE IF NIFTY TRADES 5535 LIKELY TO MOVE UP TO 5560 AND ANY TRADE ON VOLUMES WOULD TAKE IT TO 5700 LEVELS. THERE IS EVERY POSSIBILITY THAT NIFTY MAY MOVE UP FURTHER ON SHORT COVERING. STAY VERY CAUTIOUS IN THE MARKETS. ONE CAN SEE CEMENT STOCKS AS BUYING OPPORTUNITY ON DECLINES WITH STRICT STOPLOSS.
BUY BALLARPUR ABOVE 38.5 SL 38 TGT 39.7/40.1/40.5
BUY RUCHI SOYA ABOVE 116.5 SL 115 TGT 119.3/122/126
BUY MVL LTD ABOVE 111.6 SL 109 TGT 115.5/119.75/122.2
BUY UNION BANK ABOVE 367.5 SL 364.5 TGT 372/376/379.8
POSITIONAL TRADES
BUY PATNI TGT 625*
TODAY MARKETS WOULD OPEN WEAK TRACKING NEGATIVE US AND EUROPEON CLOSING ALONG WITH WEAK ASIAN OPENING. ONE HAS TO BEAR IN MIND THAT AS LONG AS FOREIGN FUNDS ARE BUYING THERE IS NO POINT WERE WE CAN SEE MARKETS TO CRACK DOWN ONE HAS TO BE VERY CAREFUL IN THIS PHASE AND STAY ON CASH. IF MARKET SEE FURTHER UPSIDE THEN WE WOULD SEE THERE WOULD LOT OF SHORT COVERING TO TAKE PLACE WHICH WOULD GUIDE THE MARKET TO FURTHER NEW HIGHS. THOUGH THE MARKET LOOKS TO BE ON THE OVER BOUGHT REGION IN THE SHORT TERM BUT THE LONG TERM OUTLOOK REMAINS VERY STRONG. IF NIFTY TRADES BELOW 5520 THEN LIKELY TO COME DOWN TO 5494 LEVELS AND ANY BREAK BELOW THIS LEVEL WOULD DRAG NIFTY FURTHER TO 5464 LEVELS ANY CLOSE BELOW 5437 IS A WEAK CLOSING AND ONE CAN INITIATE FRESH SHORTS BELOW THIS LEVEL. ON THE POSITIVE SIDE IF NIFTY TRADES 5535 LIKELY TO MOVE UP TO 5560 AND ANY TRADE ON VOLUMES WOULD TAKE IT TO 5700 LEVELS. THERE IS EVERY POSSIBILITY THAT NIFTY MAY MOVE UP FURTHER ON SHORT COVERING. STAY VERY CAUTIOUS IN THE MARKETS. ONE CAN SEE CEMENT STOCKS AS BUYING OPPORTUNITY ON DECLINES WITH STRICT STOPLOSS.
BUY BALLARPUR ABOVE 38.5 SL 38 TGT 39.7/40.1/40.5
BUY RUCHI SOYA ABOVE 116.5 SL 115 TGT 119.3/122/126
BUY MVL LTD ABOVE 111.6 SL 109 TGT 115.5/119.75/122.2
BUY UNION BANK ABOVE 367.5 SL 364.5 TGT 372/376/379.8
POSITIONAL TRADES
BUY PATNI TGT 625*
