INTRADAY TIPS FOR 26 AUGUST 2010

GOOD MORNING!!!

INDICES EDGED LOWER IN A HIGHLY VOLATILE TRADING SESSION. VOLATILITY WAS AT ITS HIGH AS TRADERS ROLLED OVER THEIR POSITIONS IN DERIVATIVES SEGMENT FROM THE CURRENT MONTH TO THE NEXT MONTH. CONCERNS OVER THE PACE OF THE GLOBAL ECONOMIC RECOVERY CONTINUED TO HURT THE INVESTORS SENTIMENT, THE SLIDE IN GLOBAL MARKET ALSO PUT INVESTORS IN FEARS. ALL THE SECTORAL INDICES WERE IN RED. MARKET BREADTH WAS WEAK, METALS AND REALITY WERE THE WORST HIT, DECLINED FOR THE STRAIGHT SECOND DAY. INITIALLY MARKET EDGED LOWER ON THE ONSET OF THE TRADING SESSION AND LATER IN THE AFTERNOON THERE WAS A STRONG REBOUND BUT PROVED TO BE SHORT LIVED AFTER A SHARP SLIDE PUSHED KEY INDICES TO THE LOWS OF THE DAY AT THE FAG END OF THE TRADING SESSION.

TODAY MARKETS MAY TRADE IN A CHANNEL AND WOULD BE RANGE BOUND. VOLATALITY MAY REMAIN HIGH AHEAD OF EXPIRY FOR THE MONTH. TODAY IF NIFTY TRADES BELOW 5460 THEN LIKELY TO SLIDE DOWN TO 5430 LEVELS AND ANY BREAK BELOW THIS POINT WOULD TAKE IT CLOSE TO 5400 LEVELS AND ANY CLOSE BELOW 5400 IS VERY WEAK. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5475 THEN ONE CAN SEE IT TO MOVE UP TO 5487 AND ANY BREAK ABOVE THIS POINT WOULD TAKE IT TO 5500 LEVELS ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5520 LEVELS. ANY CLOSE ABOVE 5500 MAY TAKE MARKETS TO THE NEW HIGHS OF THE YEAR IN THE NEXT FEW SESSIONS. WE MAY SEE A VERY STOCK SPECIFIC RALLY

BUY RUCHI SOYA SL 125 TGT 128.4/130/132 (MEDIUM TERM 150/180)*
BUY PATNI SL 538 TGT 548/553/560 (MEDIUM 620/680)
POSITIONAL TRADES
BUY VLS FINANCE SL 20.7 TGT 40