GOOD MORNING!!!
INDICES EDGED HIGHER AT THE ONSET OF THE TRADING SESSION TRACKING RECOVERY IN ASIAN STOCKS AS CONCERN OVER KOREAN TENSIONS AND CHINESE POLICY TIGHTENING EASED A LITTLE. THE MARKET SLIPPED INTO THE RED FOR A BRIEF PERIOD LATER. LATER, REPORTS FROM NEWS CHANNEL ABOUT A MULTI-CRORE HOUSING LOAN SCAM LED TO A SELL-OFF IN LATE TRADE. BANKING AND REALTY STOCKS LED THE DECLINE ALONG WITH IT SENTIMENT HAS CRUMBLED AFTER US INDEX FUTURES TURNED NEGATIVE FROM POSITIVE. ALMOST ALL THE SECTORAL INDICES WERE IN RED EXCEPT FOR THE FMCG SECTOR. ACCORDING TO MEDIA REPORTS, THE CENTRAL BUREAU OF INVESTIGATION (CBI) HAS CONDUCTED RAIDS ACROSS THE FOUR MAJOR METROS IN CONNECTION WITH THE FAKE HOME LOAN SCAM AND SENIOR OFFICIALS OF ON LIC HOUSING FINANCE, CENTRAL BANK OF INDIA AND BANK OF INDIA HAVE BEEN QUESTIONED. THE MARKET BREADTH TURNED NEGATIVE, IN CONTRAST WITH A STRONG BREADTH EARLIER IN THE DAY. VOLATILITY WAS HIGH AS TRADERS ROLL OVER POSITIONS IN THE DERIVATIVES SEGMENT FROM THE NEAR-MONTH NOVEMBER 2010 SERIES TO DECEMBER 2010 AHEAD OF THE EXPIRY OF THE NOVEMBER 2010 FUTURES & OPTIONS (F&O) CONTRACTS.
TODAY MARKETS WOULD OPEN NEGATIVE AND WOULD BE VOLATILE BUT MAY PULL BACK ON EXPIRY NOTE SO ONE SHOULD KEEP IN MIND THAT THERE WOULD BE VERY HIGH VOLATILITY IN THE ENTIRE DAY AND NIFTY MAY EVEN TEND TO COME INTO POSITIVE ZONE. IF NIFTY TRADES ABOVE 5880 THEN LIKELY TO MOVE UP TO 5910 LEVELS AND ANY BREAK ABOVE THIS POINT WE CAN SEE NIFTY TO 5932 AND AT EVERY HIGHER LEVEL WE CAN SHORT NIFTY WITHOUT ANY HESITATION ON INTRADAY TERMS. BUT IF NIFTY TRADES BELOW 5840 THEN ONE CAN REMAIN SHORT ON THE POSITIONAL FRONT. AND ON INTRADAY TERMS ONE CAN SHORT NIFTY IT IS AROUND 5900 WITH STOPLOSS OF 5910. NIFTY MAY NOT CLOSE MUCH ABOVE TO 5900 LEVELS. MARKETS ARE VERY NEGATIVE AND WE MAY STILL BLEED MUCH MORE. IF THIS NEWS HOUSING SCANDAL REMAINS IN THE NEWS FOR ANOTHER TWO TO THREE DAYS WE MAY SEE BEARS PARTYING IN THE MARKETS.
SELL LIC HOUSING SL 1091 TGT 1051/984/918 (MAY CONTINUE TO BLEED)
BUY CROMPTON GREAVES SL 338 TGT 343/347/349
BUY TVS MOTORS SL 83 TGT 86/88/90
BUY ABG SHIPPYARD SL 444 TGT 456/463/469
BUY APOLLO TYRES SL 64.40 TGT 66/67/68
BUY CROMPTON GREAVES SL 338 TGT 343/347/349
BUY TVS MOTORS SL 83 TGT 86/88/90
BUY ABG SHIPPYARD SL 444 TGT 456/463/469
BUY APOLLO TYRES SL 64.40 TGT 66/67/68
ONE CAN BUY CALLS WHEN NIFTY TRADES LOWER AND BUY PUTS WHEN NIFTY TRADES HIGHER
NOTE: TRADE WITH STRICT STOPLOSS
