GOOD MORNING!!!
THE MARKET EDGED LOWER AFTER A FIRM START AS MOST ASIAN STOCKS FELL. INTRADAY VOLATILITY WAS HIGH, INDICES ONCE AGAIN SLIPPED INTO THE RED AFTER REVERSING INITIAL LOSSES TO HIT FRESH INTRADAY HIGHS IN MORNING TRADE. THE MARKET SLIPPED INTO THE RED AFTER RECOVERING SHARPLY FROM THE DAY'S LOW TO TURN POSITIVE FOR A BRIEF PERIOD IN MID-MORNING TRADE. THE MARKET REGAINED POSITIVE ZONE IN EARLY AFTERNOON TRADE. THE MARKET HIT A FRESH INTRADAY HIGH IN AFTERNOON TRADE. THE MARKET ONCE AGAIN SLIPPED INTO THE RED IN AFTERNOON TRADE AS EUROPEAN STOCKS FELL IN EARLY TRADE AND AS US INDEX FUTURES REVERSED INITIAL GAINS. THE MARKET SURGED TO FRESH INTRADAY HIGH IN LATE TRADE AS EUROPEANS STOCKS CAME OFF LOWS AND AS US INDEX FUTURES EDGED HIGHER. IMPROVED TRADE DATA AND EASING OF INFLATION IN OCTOBER 2010 ALSO HELPED TRIGGERED BARGAIN HUNTING AFTER FRIDAY'S (12 NOVEMBER 2010) 2.1% DROP IN THE SENSEX. INTRADAY VOLATILITY WAS HIGH. THE MARKET BREADTH WAS NEGATIVE, IN CONTRAST WITH A POSITIVE BREADTH EARLIER IN THE DAY. BANKING AND IT STOCKS ROSE. BANKING STOCKS JUMPED ON THE FOLLOWING GROUNDS (A) INFLATION FOR OCT MORE OR LESS IN LINE WITH THE MARKET EXPECTATIONS. (B) STATE BANK WAS UP ON REPORTS ABOUT ACQUISITION OF A BANK IN INDONESIA, AND EXPANDING ITS OPERATIONS IN SOUTH ASIA.
TODAY MARKETS MAY OPEN POSITIVE ON POSITIVE CLOSING OF INDIAN INDICES LAST DAY AND MAY FACE RESISTANCE AROUND 6169 LEVELS AND IF NIFTY BREAK ABOVE 6180 THEN LIKELY TO MOVE ABOVE 6191 AND BREAK ABOVE THIS POINT WOULD DRIVE NIFTY TO 6225 AND ANY CLOSE ABOVE 6237 WOULD TAKE NIFTY TO 6300 IN A DAY OR TWO. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 6111 THEN LIKELY TO COME DOWN TO 6071 AND BREAK BELOW THIS POINT WOULD SLIDE NIFTY 6038 LEVELS. ONE CAN SHORT NIFTY AT EVERY HIGHER LEVEL KEEPING 6237 AS STOPLOSS POSITIONALLY. STAY CAUTIOUS AT EVERY HIGHER LEVEL AS THERE IS EVERY POSSIBILITY THAT MARKETS MAY REACT VIOLENT IN THE PRESENT CONDITION. MARKETS ARE NOT VERY STRONG SO ADVISED TO STAY AWAY FROM LONGS UNTIL NIFTY BREACHES 6237.
TODAY MARKETS MAY OPEN POSITIVE ON POSITIVE CLOSING OF INDIAN INDICES LAST DAY AND MAY FACE RESISTANCE AROUND 6169 LEVELS AND IF NIFTY BREAK ABOVE 6180 THEN LIKELY TO MOVE ABOVE 6191 AND BREAK ABOVE THIS POINT WOULD DRIVE NIFTY TO 6225 AND ANY CLOSE ABOVE 6237 WOULD TAKE NIFTY TO 6300 IN A DAY OR TWO. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 6111 THEN LIKELY TO COME DOWN TO 6071 AND BREAK BELOW THIS POINT WOULD SLIDE NIFTY 6038 LEVELS. ONE CAN SHORT NIFTY AT EVERY HIGHER LEVEL KEEPING 6237 AS STOPLOSS POSITIONALLY. STAY CAUTIOUS AT EVERY HIGHER LEVEL AS THERE IS EVERY POSSIBILITY THAT MARKETS MAY REACT VIOLENT IN THE PRESENT CONDITION. MARKETS ARE NOT VERY STRONG SO ADVISED TO STAY AWAY FROM LONGS UNTIL NIFTY BREACHES 6237.
BUY NAVNEET SL 65.40 TGT 68/69/70
BUY WOCKHARDT SL 405 TGT 425/443/453
SELL EDUCOMP SL 520 TGT 500/495/483 (STOCK IS WEAK POSITIONALLY)
