GOOD MORNING!!!
INTRADAY VOLATILITY WAS HIGH. THE MARKET REVERSED DIRECTION SOON AFTER A FIRM START. STOCKS TUMBLED IN MORNING TRADE. THE MARKET RECOVERED IN CHOPPY TRADE LATER AS THE SENSEX AND THE NIFTY CAME OFF TWO-MONTH LOWS. THE RECOVERY GATHERED STEAM IN EARLY AFTERNOON TRADE. THE KEY BENCHMARK INDICES ONCE AGAIN SLIPPED INTO THE RED AFTER TURNING POSITIVE FOR A BRIEF PERIOD IN AFTERNOON TRADE. THE SENSEX SWUNG BETWEEN GAINS AND LOSSES IN MID-AFTERNOON TRADE. THE MARKET WEAKENED AGAIN IN LATE TRADE. INDICES EXTENDED RECENT STEEP LOSSES AS A BANK LOANS BRIBERY SCANDAL AND WEAK GLOBAL STOCKS WEIGHED ON INVESTOR SENTIMENT. INTRADAY VOLATILITY WAS HIGH. WORLD STOCKS FELL AS WORRIES OVER SOVEREIGN-DEBT CONTAGION IN THE EURO ZONE CONTINUED TO ESCALATE. THE MARKET BREADTH WAS EXTREMELY WEAK WITH STOCKS OF A NUMBER OF SMALL AND MID-CAP SHARES FALLING SHARPLY. REALTY AND CONSTRUCTION SHARES SLUMPED, EXTENDING RECENT STEEP LOSSES. FOREIGN FUNDS SOLD EQUITIES WORTH A NET RS 1208.12 CRORE AND DOMESTIC INSTITUTIONAL INVESTORS BOUGHT SHARES WORTH RS 197.77 CRORE ON THURSDAY, 25 NOVEMBER 2010, AS PER PROVISIONAL DATA FROM THE STOCK EXCHANGES. YEAR-END PROFIT TAKING MAY CONTINUE TO WEIGH ON THE THE DOMESTIC BOURSES IN THE NEAR TERM. FUNDS BASED IN US AND EUROPE FOLLOW CALENDAR YEAR AS THEIR ACCOUNTING YEAR. THE MARKET HAS LOST GROUND SOON AFTER HITTING A RECORD CLOSING HIGH EARLY THIS MONTH. SHARES OF SELECT STOCKS COLLAPSED AFTER REPORTS THE SECURITIES & EXCHANGE BOARD OF INDIA IS EXAMINING THE POSSIBILITY OF INSIDER TRADING IN SHARES OF THESE COMPANIES. CENTRAL BANK OF INDIA (DOWN 10.51%), MONEY MATTERS FINANCIAL SERVICES (DOWN 10%), LIC HOUSING FINANCE (DOWN 11.49%) AND PANTALOON RETAIL (DOWN 2.25%) DECLINED.
TODAY NIFTY WOULD TRADE IN A NARROW RANGE BOUND. IF NIFTY TRADES ABOVE 5790 THEN LIKELY TO MAKE ITS UP MOVE TO 5822 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5852 LEVELS BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO FURTHER HIGHS BUT FOR A BRIEF PERIOD OF TIME AND IT WILL NOT SUSTAIN FOR TOO MANY DAYS IT IS LIKELY TO COME DOWN IN A SHORT TERM BUT ONE CAN TAKE 5725 AS A SUPPORT POINT WHERE NIFTY IS LIKELY TO GIVE A SUPPORT AND IF NIFTY COMES BELOW 5727 WITHOUT MOVING UP TO 5900 KIND OF LEVELS THEN WE CAN EXPECT NIFTY TO COME DOWN TO 5500 AS TOLD IN THE PREVIOUS WRITINGS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5765 THEN LIKELY TO COME DOWN TO 5735 AND BREAK BELOW THIS LEVEL CAN DRAG NIFTY TO 5700 ONCE 5725 IS BREACHED IT CLEARLY INDICATES THAT WE CAN SLIDE FURTHER BUY ANOTHER 200 POINTS IN A VERY SHORT TERM AND BREAK BELOW 5700 WE CAN SEE NIFTY TO COME DOWN TO 5650 LEVELS. ONE CAN GO LONG IN NIFTY AROUND 5735 TO 5750 LEVELS WITH A STOPLOSS OF 5725 LEVELS IF NIFTY SUSTAINS 5725 LEVELS THEN WE CAN SEE NIFTY TO GO UP TO 5950 LEVELS BEFORE TAKING ANOTHER DIP. ONCE IF NIFTY BREACHES 5725 THEN WE WILL HEAD DOWN TOWARS 5500 LEVELS. IF NIFTY DOES NOT BREAK 5725 THEN ONE CAN TAKE THIS AS BUYING OPPORTUNITY WITH 5725 AS STOPLOSS FOR A VERY SHORT TERM.
BUY TCS SL 1043.9 TGT 1057/1063/1075
BUY R SYSTEMS SL 119 TGT 121/122/123
POSITIONAL TRADES
BUY EID PARRY TGT 600/700
