GOOD MORNING!!!
SELLING ACTIVITY BY DOMESTIC FUNDS AND RETAIL INVESTORS GOT INTENSIFIED ON THE CONCERNS OF STRETCHED VALUATION AND CAUTION AHEAD OF Q2 SEPTEMBER HAVE PAVED MARKETS TO CORRECT DESPITE MOMENTUM OF FOREIGN FUNDS ON THE BUYING CONTINUED. INVESTORS ALSO ENDED UP BOOKING SOME PROFIT AND RETAIN THE CASH TO APPLY FOR THE INDIAS LARGEST IPO OF COAL INDIA WHICH IS EXPECTED TO OPEN ITS BIDDING ON 18 OCTOBER 2010. MARKETS FELL AROUND ONE PERCENT IN THE LAST TRADING SESSION, THOUGH MIDCAPS INDIEX AND SMALL CAP INDEX HOGGED SOME GAINS. FOREIGN FUNDS CONTINUED THEIR BUYING STRATEGY OPEN AND HAVE CROSSED ALL THE THRESHOLDS OF PREVIOUS INFLOWS IN THE HISTORY. THE NEXT MAJOR TRIGGER FOR THE STOCK MARKETS IS Q2 SEPTEMBER RESULTS WHICH IS LIKELY KICK START NEXT WEEK.
TODAY MARKETS WOULD TRADE FLAT AND IN A NARROW RANGE IF NIFTY TRADES ABOVE 6168 THEN ONE CAN SEE NIFTY TO MOVE UP TO 6185 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 6216 LEVELS AND CLOSE ABOVE 6216 IS CONSIDERED TO BE VERY BULLISH AND WE WOULD BREAK NEW HIGHS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 6120 THEN WE MAY LIKELY TO SEE 6092 LEVELS AND ANY BREAK BELOW 6092 WOULD TAKE NIFTY TO 6072 LEVELS WHERE THIS MAY TAKE SUPPORT FOR NIFTY AND BREAK BELOW THIS LEVEL WOULD SEE FURTHER DECLINE TO 6040 LEVELS. WE MAY SEE SOME BOUNCE BACK SOON AFTER 6040 LEVELS, IF MARKET IS SUPPORTED BY FOREIGN INVESTMENTS WITH ITS INFLOWS THEN WE MAY AGAIN HEAD UPWARDS AFTER 6000 TO 6040 LELELS ARE ATTAINED. ONE NEEDS TO BE VERY CAUTIOUS AT EVERY HIGHER LEVELS.
BUY INDIABULLS FINANCIALS SL 181 TGT 187/192/195.5
BUY CIPLA SL 337.40 TGT 342.50/344.30/345.60
BUY ABG SHIPYARD SL 291 TGT 299.60/304.50/307.20
BUY HEXAWARE SL 82.40 TGT 85/86.15/88
POSITIONAL TRADES.
BUY IFCI TGT 81 (ONE CAN BUY OPTIONS TO REDUCE RISK)
TODAY MARKETS WOULD TRADE FLAT AND IN A NARROW RANGE IF NIFTY TRADES ABOVE 6168 THEN ONE CAN SEE NIFTY TO MOVE UP TO 6185 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 6216 LEVELS AND CLOSE ABOVE 6216 IS CONSIDERED TO BE VERY BULLISH AND WE WOULD BREAK NEW HIGHS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 6120 THEN WE MAY LIKELY TO SEE 6092 LEVELS AND ANY BREAK BELOW 6092 WOULD TAKE NIFTY TO 6072 LEVELS WHERE THIS MAY TAKE SUPPORT FOR NIFTY AND BREAK BELOW THIS LEVEL WOULD SEE FURTHER DECLINE TO 6040 LEVELS. WE MAY SEE SOME BOUNCE BACK SOON AFTER 6040 LEVELS, IF MARKET IS SUPPORTED BY FOREIGN INVESTMENTS WITH ITS INFLOWS THEN WE MAY AGAIN HEAD UPWARDS AFTER 6000 TO 6040 LELELS ARE ATTAINED. ONE NEEDS TO BE VERY CAUTIOUS AT EVERY HIGHER LEVELS.
BUY INDIABULLS FINANCIALS SL 181 TGT 187/192/195.5
BUY CIPLA SL 337.40 TGT 342.50/344.30/345.60
BUY ABG SHIPYARD SL 291 TGT 299.60/304.50/307.20
BUY HEXAWARE SL 82.40 TGT 85/86.15/88
POSITIONAL TRADES.
BUY IFCI TGT 81 (ONE CAN BUY OPTIONS TO REDUCE RISK)
