GOOD MORNING!!!
WEAK GLOBAL CUES WEIGHED ON THE INVESTORS SENTIMENT ON THE WEEKEND. INDICES EDGED LOWER BREAKING TWO-DAY GAINS AS SOME OF THE PIVOTALS FELL ON PROFIT TAKING NOTE. ALMOST ALL THE WORLD MARKETS DECLINED ON GLOBAL ECONOMIC WORRIES. MARKET BREADTH WAS NEGATIVE BANKING, IT, TELECOM AND FEW OF THE AUTO STOCKS DECLINED BUT ONLY SECTOR WHICH ROSE ON FRIDAY WAS REALITY. THERE WAS HUGE VOLATALITY WHICH WAS WITNESSED AT THE START OF THE TRADE THOUGH THERE WAS LITTLE RECOVERY SOON AFTER THE FALL OF THE MARKET IT PROVED TO BE SHORT LIVED AND INDICES LOST IT GROUND IN THE MID AFTERNOON AND IT TRADED IN A VERY NARROW RANGE BUT WEAKNESS PERSISTED ON THE BOURSES IN LATE TRADE. THERE WAS HUGE BUYING FROM FOREIGN FUNDS WHICH AMOUNTED TO 6365.98 CRORES TILL 19 AUGUST 2010 WHICH HAS ABSORBED THE SELLING OF 3047.42 CRORES FROM DOMESTIC FUNDS.
MARKETS LOOK FLAT AND RANGE BOUND THOUGH WE ARE IN A OVER-BOUGHT REGION ONE SHOULD BE VERY CAREFUL ON BOTH THE SIDE AS THE UPSIDE IS VERY LIMITED AND WE MAY RETRACE A BIT TO FURTHER PULL UP SO WHEN MARKETS SLIDE IT WILL GIVE YOU A CLEAR INDICATION FOR A DOWNSIDE WHICH MAY BE AROUND 200 TO 300 POINTS IN NIFTY BUT AT THIS STAGE WE ARE STILL UNCLEAR OF DOWNTREND IN THE MARKET, THE FOREIGN FUND BUYING CLEARLY INDICATES A LOT OF STRENGTH IN THE MARKETS. ONE CANNOT IGNORE THAT THE LONG TERM VIEW ON THE INDIAN MARKET WHICH LOOKS VERY STRONG WHEN COMPARED TO ITS PEERS, THERE IS HIGH FLOW OF FOREIGN FUNDS WHICH CLEARLY INDICATES THE LONG TERM BULLISHNESS IN THE MARKETS. TODAY IF NIFTY TRADES ABOVE 5540 THEN LIKELY TO TAKE OFF TO 5560 AND THEN ABOVE THAT POINT 5590 BUT ONE HAS TO REMEMBER THAT IF ANY FURTHER BUYING CROPS IN THEN WE WOULD SEE LOT OF SHORT COVERING TO TAKE PLACE AND MARKET MAY MOVE UP FUTHER AS SPECIFICALLY TOLD IN THE EARLIER POSTS THAT MARKETS LIKELY TO TOUCH 5560 ANY TRADE ABOVE THAT WOULD HAVE ONLY ONE RESISTANCE POINT I.E., 5600 BUT ANY BREAK IN THIS PSYCHOLOGICAL FIGURE WOULD TAKE MARKETS MUCH HIGHER ON SHORT COVERING. ON THE NEGATIVE SIDE ANY BREAK BELOW 5500 WOULD TAKE DOWN TO 5470 ONLY BELOW 5470 ONE CAN GO SHORT POSITIONALLY UNTIL THEN ITS ONLY A INTRADAY PLAY. REMEMBER FOR SHORTING THERE IS LOT OF SCOPE GOING FORWARD DON’T INTIATE SHORTS IN HURRY YOU WILL SEE MARKETS TO FUMBLE WHEN PROFIT BOOKING TAKES PLACE AND ONE CAN ENTER SHORTS AT THAT TIME WHEN MARKETS ARE COMING DOWN WITH GOOD VOLUMES UNTIL THEN STAY ON SIDELINES AND DON’T CARRY OVER SHORTS TO THE NEXT DAY. MARKETS ARE STILL BULLISH. DON’T INVEST MORE THAN 30% IN THE MARKET RETAIN CASH.
BUY DLF SL 332 TGT 338.75/343/349
BUY IDFC SL 186 TGT 192/194/196
BUY LARSEN & TOUBRO SL 1855 TGT 1877/1889/1900*
BUY FINANCIAL TECHNOLOGIES SL 1400 TGT 1428/1444/1472 (SHORT TERM 1550)*
BUY IND SWIFT LABS SL 93 TGT 97/99/102.5 (SHORT TERM 135)*
BUY JET AIRWAYS TGT 1000
BUY VARUN INDS TGT 200*
BUY BF UTILITIES 1400/1600*
BUY DCB TGT 66*
BUY RELIANCE MEDIA TGT 260/300
BUY BHUSHAN STEEL 2200/2500*
