GOOD MORNING!!!
STOCKS WERE VOLATILE. THE MARKET INCHED HIGHER IN THE OPENING AND HAS HIT 31 MONTH HIGH ON THE INDICES AND STARTED GIVING AWAY ALL THE INTRADAY GAINS AND STARTED RECOVERING FROM MID AFTERNOON TRADE AS EUROPEAN STOCKS AND US INDEX FUTURES MOVED INTO THE GREEN FROM RED. THE MARKETS AGAIN CUT GAINS, SOON AFTER HITTING A FRESH 31-MONTH HIGH IN LATE TRADE STILL MANAGED TO CLOSE ON A VERY POSITIVE NOTE. BANKING, REALTY, TEA, CONSUMER DURABLES AND CAPITAL GOODS STOCKS ROSE. DATA SHOWING SUSTAINED BUYING OF INDIAN STOCKS BY FOREIGN FUNDS AND GOOD MONSOON RAINS, UNDERPINNED SENTIMENTS. THE MARKET BREADTH WAS POSITIVE, HAVING WEAKENED FROM A STRONG BREADTH EARLIER IN THE DAY.
TODAY MARKETS LOOK POSITIVE ON GLOBAL CUES AND A POSITIVE IIP DATA ON FRIDAY WOULD IGNITE MARKETS IN THE OPENING TRADE, WE WOULD INCH HIGHER IN THE OPENING BELL AND CONTINUE TO REMAIN IN A RANGE BOUND ON POSITIVE BIAS. IF NIFTY TRADES ABOVE 5640 THEN LIKELY TO MOVE UP TO 5674 LEVELS AND BREAK ABOVE IT MAY TAKE NIFTY TO 5693 LEVELS WHICH WILL ACT AS A TOUGH RESISTANCE ANY CLOSING ABOVE THIS POINT WOULD SEE FURTHER INCLINE IN NIFTY TO 5776. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5622 THEN WE MAY SEE NIFTY TO DIP DOWN TO 5592 AND BREAK BELOW THIS LEVEL WOULD TAKE FURTHER DOWN TO 5557 LEVELS ANY CLOSE BELOW 5592 WE CAN CONSIDER NIFTY TO BE WEAK. STRONG IIP NUMBERS, POSITIVE CLOSING OF AMERICAN MARKETS, POSITIVE START OF ASIAN INDICES, SUSTAINED BUYING INTEREST FROM FOREIGN INVESTORS GOOD MONSOONS RAINS ARE THE KEY FACTORS IN MARKETS ON THE POSITIVE FRONT, ONE HAS TO REMEMBER THAT ANYTIME WHEN MARKET IS MOVING IT TAKES ALL FRONT END STOCKS TO THE NEW HIGHS AND CONSOLIDATES THEN WE SEE AN UPMOVE IN MIDCAPS AND THEN LASTLY IN THE SMALL CAPS WHEN THE SMALL CAPS GIVES A RUN UP IT IS A HINT TO AN INVESTOR TO STAY AWAY FROM MARKETS AS WE MAY SEE A WAVE OF DECLINE SO WHEN YOU SEE SMALL CAPS RUNNING UP HIGHER THEN IT IS ADVISED TO STAY AWAY FROM THE MARKETS AND ESPECIALLY FROM THE PENNY STOCKS AS YOU WONT GET THE VALUE FOR IT , IF YOU HAVE ANY GOOD FUNDAMENTALLY STRONG COMPANY IN YOUR HAND THEN EVEN IN THE DECLINE WE MAY SEE IT TO INCH HIGHER ON FAST TRACK SO ADVISED TO STAY AWAY FROM PENNY STOCKS AT THE CURRENT LEVELS. FERTILIZERS, BANKING, CEMENTS AND PHARMA STILL LOOKS GOOD ON CHARTS.
BUY PAREKH ALUMINIUM SL 495.7 TGT 522/542/571
BUY BANK OF INDIA SL 487.70 TGT 499/509/518
BUY GODREJ IND SL 242.40 250/254/262
BUY VOLTAS SL 226 TGT 230/234/237*
BUY FEDERAL BANK SL 371 TGT 376/378.65/381.5 (SHORT TERM 425)
POSITIONAL TRADES
BUY ULTRATECH CEMENTS TGT 1150/1265
