GOOD MORNING!!!
INDICES EXTENDED LOSSES FOR THE STRAIGHT SECOND DAY AFTER THE SELL-OFF BY FII’S THE MARKETS OPENED ON A WEAK NOTE AND EXTENDED LOSSES AFTER A GOOD BUYING ON FRIDAY IN THE LAST HOUR OF TRADE. THE MARKET CAME OFF LOWS IN MID-MORNING TRADE AFTER HITTING A FRESH INTRADAY LOW AFTER A SURVEY SHOWED STRENGTH IN THE DOMESTIC ECONOMY CONTINUED TO UNDERPIN UPBEAT SENTIMENT AMONG INDIAN FIRMS IN THE FOURTH QUARTER ENDING DECEMBER 2010. THE MARKET ONCE AGAIN PARED LOSSES IN LATE TRADE AFTER HITTING A FRESH INTRADAY LOW. THOUGH MARKETS RECOVERED A BIT IN THE MID TRADING SESSION AND WAS VOLATILE THERE WAS ABSOLUTELY NO CHANCE OF RECOVERY SEEN AT ANY STAGE DURING THE DAY. THE BREADTH OF THE MARKETS WAS WEAK. ALL THE SECTORAL INDICES WERE ON RED AND REALITY, CONSUMER DURABLES, BANKING, AUTO AND METALS LEAD THE RALLY OF THE DOWNFALL.
TODAY MARKETS LOOK FLAT AND NEGATIVE THOUGH MARKETS MAY OPEN POSITIVE, INITIALLY TRACKING ASIAN AND SGX NIFTY MAY NOT LIKELY TO CONTINUE THE TREND AS NIFTY WAS UNDER TREMENDOUS PRESSURE ON THE LAST TRADING SESSION WE ARE LIKELY TO HEAD DOWN FURTHER. IF NIFTY TRADES ABOVE 5950 THEN ONE CAN GO LONG AS NIFTY MAY INCLINE TO 5980 AND ANY TRADE AND CLOSE ABOVE 5980 IS AGAIN A GOOD BUY, WHICH MEANS NIFTY HAS TAKEN SUPPORT. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5914 THEN LIKELY TO MAKE ITS DOWN MOVE TO 5874 AND BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 5811 LEVELS AND ANY CLOSE BELOW 5980 ONE CAN RETAIN SHORTS. WE ARE IN A NEGATIVE WAVE SO AVOID BUYING IN QUANTITIES AS WE MAY LIKELY TO BREAK 5725 LEVELS SO STAY CAUTIOUS.
BUY GAIL SL 506 TGT 512/517/524
BUY HEXAWARE SL 104 TGT 107/109/112 (SHORT TERM 130/145)*
NOTE: STAY AWAY FROM AKRUTI, WELSPUN GUJARAT, HANNUNG TOYS, KARTURI GLOBAL, RUCHI SOYA, KS OILS, MURLI INDS AND UFLEX.
