MARKETS LOST ITS GROUND IN THE LATE AFTERNOON HITTING FRESH INTRADAY LOWS ON WORRIES OVER THE PACE OF THE US ECONOMIC RECOVERY. APPROVAL OF PROPOSED DIRECT TAX CODE BILL BY UNION CABINET HAS DIRECT IMPACT ON INFORMATION TECHNOLOGY AND INFRASTRUCTURE STOCKS. THOUGH THERE WAS SOME RECOVERY AT THE START OF THE DAY IN SECTORS LIKE REALITY, METALS AND CONSUMER DURABLES TRACKING ALL OF THESE SECTORS HAS REVERSED GAINS, BANKING STOCKS FELL ALONG WITH BANKING PSU STOCKS ALSO FEEL. MARKETS BREADTH WAS WEAK IN CONTRAST TO STRONG BREADTH IN THE MID-MORNING TRADE. EXCEPT FOR THE OIL AND GAS REST ALL THE INDICES IN THE MARKET WERE IN RED. ALL IN ALL INTRADAY VOLATILITY WAS IMMENSE.
THOUGH MARKETS CLOSED LOWER LOWS AND LOOKING VERY WEAK ON CLOSING. STRONG CLOSING OF US AND EUROPEAN MARKETS HAVE TRIGGERED ASIAN MARKETS AND WILL ALSO IGNITE INDIAN MARKETS AS WELL IN THE INTIAL TRADE. TODAY MARKETS WOULD OPEN POSITIVE AND TRADE IN A POSITIVE ZONE, AND PHASE SOME RESISTANCE AROUND 5444 LEVELS AND SURGE ABOVE THAT POINT WOULD TAKE NIFTY TO 5468 LEVELS THIS MAY ACT AS ANOTHER RESISTANCE ZONE. AND ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5400 THEN LIKELY TO DECLINE TO 5360 LEVELS AND ANY BREAK BELOW 5360 WOULD SLIDE DOWN TO 5324 LEVELS, ANY CLOSE BELOW 5400 IS ALSO CONSIDERED TO BE NEGATIVE. IT SECTOR AND INFRASTRUCTURE MAY SEE SOME DECLINE SO DON’T GO ON THE BUYING SIDE IN THE ABOVE TWO SECTORS. SUGARS LOOK ATTRACTIVE ON THE MEDIUM TERM HORIZON.
THOUGH MARKETS CLOSED LOWER LOWS AND LOOKING VERY WEAK ON CLOSING. STRONG CLOSING OF US AND EUROPEAN MARKETS HAVE TRIGGERED ASIAN MARKETS AND WILL ALSO IGNITE INDIAN MARKETS AS WELL IN THE INTIAL TRADE. TODAY MARKETS WOULD OPEN POSITIVE AND TRADE IN A POSITIVE ZONE, AND PHASE SOME RESISTANCE AROUND 5444 LEVELS AND SURGE ABOVE THAT POINT WOULD TAKE NIFTY TO 5468 LEVELS THIS MAY ACT AS ANOTHER RESISTANCE ZONE. AND ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5400 THEN LIKELY TO DECLINE TO 5360 LEVELS AND ANY BREAK BELOW 5360 WOULD SLIDE DOWN TO 5324 LEVELS, ANY CLOSE BELOW 5400 IS ALSO CONSIDERED TO BE NEGATIVE. IT SECTOR AND INFRASTRUCTURE MAY SEE SOME DECLINE SO DON’T GO ON THE BUYING SIDE IN THE ABOVE TWO SECTORS. SUGARS LOOK ATTRACTIVE ON THE MEDIUM TERM HORIZON.
BUY ONGC SL 1298 TGT 1317/1330/1347
BUY FDC LTD SL 104 TGT 109/113/118
BUY MID DAY SL 37 TGT 38/39/40 (SHORT TERM 45)*
BUY NAHAR CAP SL 101 TGT 107/113/117*
BUY UNIPLY IND SL 16.20 TGT 16.75/17.1/17.35 (SHORT TERM 19.20)
POSITIONAL TRADES
BUY CUMMINS TGT 850/1100
BUY GOLD BEES TGT 1922/2040
SELL PATEL ENGG TGT 330/300
SELL ADITYA BIRLA NUVO TGT 700
