GOOD MORNING!!!
MARKETS OPENED LITTLE HIGHER ON THE OPENING AND SOON WEAKEND IN A SPAN OF SECONDS TRACKING WEAK ASIAN STOCKS, STOCKS EXTENEDED LOSSES IN THE EARLY TRADE AND IN THE MID AFTERNOON THERE WAS SLIGHT RECOVERY BUT THE RECOVERY PROVED TO BE SHORT LIVED BUT LATER WITH THE RECOVERY IN THE EUROPEAN AND US INDICES FROM THE STEEP INTRADAY SLIDE, MARKETS HAVE RECOVERED A BIT. THE MARKET BREADTH WAS NEGATIVE, IN CONTRAST WITH POSITIVE BREADTH EARLIER IN THE DAY. CAPITAL GOODS, REALTY AND METAL STOCKS FELL. BUT, IT STOCKS ROSE ON EXPECTATIONS OF STRONG Q2 SEPTEMBER 2010 RESULTS. BANKING STOCKS AND SOME AUTO SHARES CAME OFF LOWS AS SLOWDOWN IN INDUSTRIAL PRODUCTION GROWTH IN AUGUST2010. INTRADAY VOLATILITY WAS IMMENSE. THE MOST DISAPPOINTING WAS THE IIP DATA ACCORDING TO THE SOURCES THE INDUSTRIAL PRODUCTION ROSE AT A MUCH SLOWER-THAN-EXPECTED 5.6% IN AUGUST 2010 FROM A YEAR EARLIER, SHARPLY LOWER THAN THE PREVIOUS MONTH'S REVISED 15.2% GROWTH, MANUFACTURING OUTPUT ROSE AN ANNUAL 5.9% IN AUGUST 2010, LOWER THAN A 10.6% RISE IN AUGUST 2009. INDUSTRIAL PRODUCTION GROWTH FOR JULY 2010 WAS REVISED UPWARDS TO 15.2% FROM 13.8% EARLIER. OUTPUT IN THE MINING SECTOR ROSE 7% VERSES 11% RISE IN AUGUST 2009 AND ELECTRICITY GENERATION ROSE JUST 1% FROM A 10.6% GROWTH IN AUGUST 2009. INTERMEDIATE GOODS PRODUCTION ROSE 10% VERSES A 10.4% RISE IN AUGUST 2009 AND BASIS GOODS PRODUCTION ROSE 3.7% VERSES A 7.7% RISE IN AUGUST 2009. CAPITAL GOODS PRODUCTION CONTRACTED 2.6% IN AUGUST 2010 VERSES A 9.2% GROWTH IN AUGUST 2009. PRODUCTION OF CONSUMER GOODS ROSE 6.9%, LOWER THAN A 10.9% GROWTH IN AUGUST 2009. WITHIN THE CONSUMER GOODS SEGMENT, THE CONSUMER DURABLES SECTOR PUT UP A STRONG SHOWING. PRODUCTION OF CONSUMER DURABLES JUMPED 26.5% VERSES A 24.7% GROWTH IN AUGUST 2009. BUT, PRODUCTION OF CONSUMER NON-DURABLES CONTRACTED 1.2% VERSES A 6.1% GROWTH IN AUGUST 2009.
TODAY MARKET LOOKS NARROWLY RANGE BOUND, IF NIFTY TRADES BELOW 6115 THEN LIKELY TO DIP DOWN TO 6100 AND BREAK BELOW THIS LEVEL IT WILL DRAG NIFTY DOWN TO 6068 AND FURTHER BELOW THIS WOULD TAKE SUPPORT AT 6050 LEVELS. NIFTY HAS SHORT TERM SUPPORT AT AROUND 5997 LEVELS AND MAJOR SUPPORT AT 5840 LEVELS. ON THE UPSIDE IF NIFTY TRADES ABOVE 6136 THEN LIKELY TO MAKE AN UPMOVE TO 6156 AND ABOVE THAT LEVEL 6184 LEVELS, ANY CLOSE ABOVE 6170 LEVELS IS AGAIN CONSIDERED TO BE POSITIVE IN TERMS OF NIFTY.
BUY JBF IND SL 176.40 TGT 181/183/185
BUY KPIT SL 175 TGT 180/184/188 (SHORT TERM 220)
BUY SCI SL 187 TGT 192/194/196
BUY GHCL SL 51 TGT 52.40/52.75/53.40 (SHORT TERM 56)
BUY MUDRA LIFESTYLE SL 53 TGT 54.65/55.40/56.60 (SHORT TERM 68/75)
POSITIONAL TRADES
BUY APOLLO TYRES TGT 105
BUY IFCI TGT 100
MARKETS OPENED LITTLE HIGHER ON THE OPENING AND SOON WEAKEND IN A SPAN OF SECONDS TRACKING WEAK ASIAN STOCKS, STOCKS EXTENEDED LOSSES IN THE EARLY TRADE AND IN THE MID AFTERNOON THERE WAS SLIGHT RECOVERY BUT THE RECOVERY PROVED TO BE SHORT LIVED BUT LATER WITH THE RECOVERY IN THE EUROPEAN AND US INDICES FROM THE STEEP INTRADAY SLIDE, MARKETS HAVE RECOVERED A BIT. THE MARKET BREADTH WAS NEGATIVE, IN CONTRAST WITH POSITIVE BREADTH EARLIER IN THE DAY. CAPITAL GOODS, REALTY AND METAL STOCKS FELL. BUT, IT STOCKS ROSE ON EXPECTATIONS OF STRONG Q2 SEPTEMBER 2010 RESULTS. BANKING STOCKS AND SOME AUTO SHARES CAME OFF LOWS AS SLOWDOWN IN INDUSTRIAL PRODUCTION GROWTH IN AUGUST2010. INTRADAY VOLATILITY WAS IMMENSE. THE MOST DISAPPOINTING WAS THE IIP DATA ACCORDING TO THE SOURCES THE INDUSTRIAL PRODUCTION ROSE AT A MUCH SLOWER-THAN-EXPECTED 5.6% IN AUGUST 2010 FROM A YEAR EARLIER, SHARPLY LOWER THAN THE PREVIOUS MONTH'S REVISED 15.2% GROWTH, MANUFACTURING OUTPUT ROSE AN ANNUAL 5.9% IN AUGUST 2010, LOWER THAN A 10.6% RISE IN AUGUST 2009. INDUSTRIAL PRODUCTION GROWTH FOR JULY 2010 WAS REVISED UPWARDS TO 15.2% FROM 13.8% EARLIER. OUTPUT IN THE MINING SECTOR ROSE 7% VERSES 11% RISE IN AUGUST 2009 AND ELECTRICITY GENERATION ROSE JUST 1% FROM A 10.6% GROWTH IN AUGUST 2009. INTERMEDIATE GOODS PRODUCTION ROSE 10% VERSES A 10.4% RISE IN AUGUST 2009 AND BASIS GOODS PRODUCTION ROSE 3.7% VERSES A 7.7% RISE IN AUGUST 2009. CAPITAL GOODS PRODUCTION CONTRACTED 2.6% IN AUGUST 2010 VERSES A 9.2% GROWTH IN AUGUST 2009. PRODUCTION OF CONSUMER GOODS ROSE 6.9%, LOWER THAN A 10.9% GROWTH IN AUGUST 2009. WITHIN THE CONSUMER GOODS SEGMENT, THE CONSUMER DURABLES SECTOR PUT UP A STRONG SHOWING. PRODUCTION OF CONSUMER DURABLES JUMPED 26.5% VERSES A 24.7% GROWTH IN AUGUST 2009. BUT, PRODUCTION OF CONSUMER NON-DURABLES CONTRACTED 1.2% VERSES A 6.1% GROWTH IN AUGUST 2009.
TODAY MARKET LOOKS NARROWLY RANGE BOUND, IF NIFTY TRADES BELOW 6115 THEN LIKELY TO DIP DOWN TO 6100 AND BREAK BELOW THIS LEVEL IT WILL DRAG NIFTY DOWN TO 6068 AND FURTHER BELOW THIS WOULD TAKE SUPPORT AT 6050 LEVELS. NIFTY HAS SHORT TERM SUPPORT AT AROUND 5997 LEVELS AND MAJOR SUPPORT AT 5840 LEVELS. ON THE UPSIDE IF NIFTY TRADES ABOVE 6136 THEN LIKELY TO MAKE AN UPMOVE TO 6156 AND ABOVE THAT LEVEL 6184 LEVELS, ANY CLOSE ABOVE 6170 LEVELS IS AGAIN CONSIDERED TO BE POSITIVE IN TERMS OF NIFTY.
BUY JBF IND SL 176.40 TGT 181/183/185
BUY KPIT SL 175 TGT 180/184/188 (SHORT TERM 220)
BUY SCI SL 187 TGT 192/194/196
BUY GHCL SL 51 TGT 52.40/52.75/53.40 (SHORT TERM 56)
BUY MUDRA LIFESTYLE SL 53 TGT 54.65/55.40/56.60 (SHORT TERM 68/75)
POSITIONAL TRADES
BUY APOLLO TYRES TGT 105
BUY IFCI TGT 100
