INTRADAY TIPS FOR 31 MARCH 2011

GOOD MORNING !!!

HAPPY TO BE AN INDIAN, JOIN HANDS IN CONGRATULATING TEAM INDIA FOR THEIR SPLENDID PERFORMANCE AND WISH THEM GOOD LUCK FOR THE FINAL.

INDICES GOT OFF TO A STEADY START WITH LOT OF CONVICTION TRACKING POSITIVE CLOSING OF AMERICAN MARKETS AND STRONG OPENING OF ASIAN INDICES. PERSISTENT BUYING BY FOREIGN FUNDS IN THE RECENT PAST TOO UNDERPINNED INVESTOR MOOD AHEAD OF THE QUARTERLY EARNINGS SEASON AS THEY EXPECTED THAT MOST OF THE HEADWINDS HAVE BEEN FACTORED IN BY THE MARKETS AND THAT THE COMPANIES WILL REPORT STRONG EARNINGS FOR THE FOURTH QUARTER. INDICES GRADUALLY KEPT GATHERING MOMENTUM THROUGH THE DAY’S TRADE AS INVESTORS CONTINUED TO AGGRESSIVELY PILE UP POSITIONS IN BEATEN DOWN STOCKS. THE FRONTLINE INDICES HIT THE INTRADAY HIGH LEVELS IN THE EARLY HOURS OF SECOND HALF, HOWEVER THE BENCHMARKS CAME OFF THE DAY’S HIGH LEVEL IN THE MID AFTERNOON SESSION AS INVESTORS BOOKED PARTIAL PROFITS A DAY AHEAD OF THE MARCH SERIES F&O CONTRACT EXPIRY. EVENTUALLY THE BOURSES SNAPPED SEVENTH STRAIGHT SESSION IN THE POSITIVE TERRAIN AND SETTLED A TAD BELOW THE PSYCHOLOGICAL LEVELS OF 5,800. MARKET BREADTH REMAINED OPTIMISTIC AND QUITE POSITIVE EVEN WITH LOW VOLUMES COMPARED TO THE PREVIOUS DAY.

TODAY MARKETS WOULD OPEN POSITIVE AND PURELY REMAIN IN A RANGE BOUND AHEAD OF CONTRACT EXPIRY FOR THIS MONTH. WE MAY SEE NIFTY TO HAVE VOLATILE MOVEMENTS, IF NIFTY TRADES ABOVE 5800 THEN LIKELY TO MOVE UP TO 5825 AND TRADE ABOVE THIS POINT WOULD TAKE NIFTY TO 5843 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5795 THEN LIKELY TO COME DOWN TO 5773 AND BREAK BELOW THIS LEVELS WOULD TAKE NIFTY DOWN TO 5755 LEVELS. ONE SHOULD BE VERY CAUTIOUS IN TAKING POSITIONS AT THESE LEVELS AND WOULD SUGGEST TO HOLD ON SIDELINES AS NIFTY MAY LIKELY TO COME DOWN ON RETRACEMENT FRONT AS NIFTY HAS GONE UP BY MORE THEN 6% IN JUST SEVEN TRADING SESSION WHICH IS CONSIDERED TO BE VERY HIGH. ANOTHER IMPORTANT POINT TO BE REMEMBERED IS WITH YEAREND THERE MIGHT BE EVERY POSSIBILITY THAT FUNDS WERE BUYING JUST TO SCALE UP THERE NAV’S TO SHOW IN THEIR ANNUAL ACCOUNTS. WE CAN UNDERSTAND THE CLEAR TREND ONCE WE GET ON TO THE NEXT MONTH CONTRACT.

INTRADAY TIPS FOR 30 MARCH 2011

GOOD MORNING!!!

INDICES GOT OFF TO A SOFT START TRACKING SUBDUED LEADS FROM ACROSS ASIA WHERE INVESTORS REMAINED ON THE SIDELINES DUE TO THE WEAKNESS IN OVERNIGHT US MARKETS WHICH WITHERED DESPITE SOME GOOD ECONOMIC REPORTS AS TRADERS REMAINED APPREHENSIVE OVER JAPAN'S NUCLEAR CRISIS AND VIOLENCE IN THE MIDDLE EAST AND NORTH AFRICA. THEREAFTER, THE INDICES GRADUALLY KEPT GATHERING MOMENTUM THROUGH THE DAY’S TRADE AS INVESTORS CONTINUED TO AGGRESSIVELY PILE UP POSITIONS IN BEATEN DOWN BLUE CHIP STOCKS. INVESTORS’ EXHILARATION IS SHOWING NO SIGNS OF WANING ANY TIME SOON IN THE INDIAN STOCK MARKETS AND THE FRONTLINE STOCKS HIT THE INTRADAY HIGH LEVELS IN THE LATE HOURS OF SECOND HALF HOWEVER THE BENCHMARKS CAME OFF THE DAY’S HIGH LEVEL IN DYING HOURS OF TRADE AS INVESTORS BOOKED PARTIAL PROFITS TWO DAYS AHEAD OF THE MARCH F&O SERIES EXPIRY. EVENTUALLY THE BOURSES SNAPPED SIXTH STRAIGHT SESSION IN THE POSITIVE TERRAIN AND SAILED WELL BEYOND PSYCHOLOGICAL LEVEL OF 5700. THOUGH THE TURNOVER WAS GOOD THE VOLUMES WERE EQUALLY GREAT ACROSS THE BOARD BUT THE BREADTH OF THE MARKETS REMAINED NEGATIVE.

TODAY MARKETS WOULD OPEN POSITIVE TRACKING STRONG OVERNIGHT CLOSING IN US MARKETS AND POSITIVE OPENING IN THE ASIAN INDICES, ONE SHOULD TRY TO AVOID BUYING FOR TODAY AND TOMORROW AND CAN START AFRESH AS THE CONTRACT IS GOING TO EXPIRE TOMORROW WE MAY SEE GOOD AMOUNT OF VOLATILITY IN THE MARKETS. WE MAY SEE GREAT AMOUNT OF VOLATILITY IN THE MARKETS AHEAD OF EXPIRY. THERE IS EVERY CHANCE OF MARKETS TO BEHAVE VERY ERRATIC STAY CAUTIOUS. TODAY IF NIFTY TRADES ABOVE 5775 THEN LIKELY TO MOVE UP TO 5800 AND ANY CLOSE ABOVE 5800 WOULD TAKE NIFTY TO 5820 THERE IS EVERY POSSIBILITY TO MOVE IN A NARROW RANGE IN THE DAY. ON THE DOWNSIDE IF NIFTY TRADES BELOW 5740 THEN LIKELY TO COME DOWN TO 5714 AND THEN TO 5686 LEVELS. IF NIFTY TRADES BELOW 5686 THEN LIKELY TO COME DOWN TO 5650 LEVELS. ANY CLOSE BELOW 5650 LEVELS WOULD DRAG NIFTY FURTHER DOWN.

INTRADAY TIPS FOR 29 MARCH 2011

GOOD MORNING!!!

THE MARKETS GOT OFF TO A SUPPLE START AS FRESH WORRIES OVER HIGH LEVELS OF RADIATION IN JAPAN EMERGED WHICH DELAYED EFFORTS TO STABILIZE A CRIPPLED NUCLEAR POWER PLANT AND INFERIOR THEN EXPECTED EARNINGS REPORTED BY SOME BLUE CHIPS COMPANIES WEIGHED ON CAUTIOUS INVESTOR MOOD. AFTER HITTING INTRADAY LOWS AND WITH THE EMERGENCE OF BUYING INTEREST IN BLUE CHIPS AND FERTILIZER STOCKS MARKETS YET AGAIN ROSE TO FRESH INTRADAY HIGHS. HOWEVER, THE SESSION LARGELY REMAINED CHARACTERIZED BY CHOPPINESS AS INVESTORS SEEMED RELUCTANT TO PILE UP HEFTY POSITIONS AFTER THE RECENT OVER FIVE PERCENT RALLY.

TODAY MARKETS WOULD OPEN FLAT TO NEGATIVE AS MARKETS ARE ALMOST REACHED A POINT WHERE IT IS DIFFICULT TO MOVE FROM HERE ON WITHOUT GREAT VOLUMES AND 5740 BEING ONE OF THE TOUGHEST RESISTANCE OF ALMOST MANY MONTHS MAY BE WE MAY FACE THAT AS TOUGH RESISTANCE FOR TIME BEING TILL THE VOLUMES SUPERSEDE. IF NIFTY TRADES ABOVE 5740 ONLY THEN ONE IS ADVISED TO GO LONG ON THE CLOSING BASIS AND IT IS WISE TO AVOID GOING LONG AS WE ARE AT THE VERGE OF CLOSING THE CURRENT MONTH CONTRACT IN ANOTHER COUPLE OF DAYS, ONE CAN KNOW THE CORRECT TREND ONCE THE CONTRACT OF THE CURRENT MONTH CLOSES. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5684 THEN LIKELY TO COME DOWN TO 5665 AND THEN BREACH BELOW THIS POINT WOULD TAKE NIFTY TO 5640 LEVELS AND ANY BREACH BELOW THIS POINT WOULD DRAG NIFTY TO 5609 LEVELS. STAY CAUTIOUS FOR THESE THREE DAYS AS THE VOLATILITY WOULD DRIVE THE MARKETS CRAZY.

BUY CHENNAI PETRO SL 216 TGT 223/227/232 BUY IDFC SL 158 TGT 161/162.7/164.30

INTRADAY TIPS FOR 28 MARCH 2011

GOOD MORNING!!!

INDICES GOT OFF TO A POSITIVE START AS INVESTORS PILED UP POSITIONS TRACKING BUOYANT LEADS FROM AMERICAN OVERNIGHT MARKETS WHICH WENT FOR A SMART RALLY ON THE BACK OF CONFIDENT CORPORATE EARNINGS AND SIGNS OF A STRONGER JOB MARKET. FRONT END STOCKS INITIALLY TRADED IN A NARROW RANGE IN THE FIRST HALF OF THE SESSION, IT AND CAPITAL GOODS WERE VERY PROMINENT IN THE GAINERS LIST. HOWEVER, BUYING CAUGHT UP IN THE SECOND HALF OF THE SESSION WITH BANKING AND SOFTWARE COMPANIES OUT PERFORMING WHICH EVENTUALLY TOOK BEYOND PSYCHOLOGICAL LEVELS IN BOTH THE INDICES. BREADTH OF THE MARKETS WAS EXTREMELY BULLISH AND VOLUMES IN THE MARKETS WERE VERY GOOD.

TODAY MARKETS LOOK FLAT AND RANGE BOUND TRACKING ASIAN INDICES WHICH ARE TRADING IN NEGATIVE TERRITORY. IF NIFTY TRADES ABOVE 5600 THEN LIKELY TO MAKE AN UPMOVE TO 5718 AND THEN TO 5750 AND TRADE ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5789 LEVELS, ONE HAS TO BE EXTREMELY CAREFUL FROM 5750 LEVELS AS THERE IS EVERY CHANCE OF MARKET CORRECTING FROM THERE ON. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5675 THEN LIKELY TO COME DOWN TO 5642 LEVELS AND BREACH BELOW THIS POINT WOULD TAKE NIFTY TO 5615 LEVELS AND ANY CLOSE BELOW 5600 WOULD DRAG NIFTY TO 5570 LEVELS. STAY CAUTIOUS IN THE MARKETS.

INTRADAY TIPS FOR 25 MARCH 2011

GOOD MORNING!!!

YET ANOTHER STABLE DAY WHERE INDICES GOT OFF TO A GAP UP START AS LEADS FROM THE GLOBAL FRONT UNDERPINNED REGIONAL SENTIMENTS ALONG WITH THE MARGINAL DROP IN CRUDE OIL PRICES FILLIPED INVESTORS’ MOOD. INDICES TRADED IN A NARROW BAND THROUGH THE DAY’S TRADE AND HELD THE CRUCIAL SUPPORT LEVELS IN THE NIFTY FOR THE ENTIRE DAY EVEN THOUGH THERE WAS SUDDEN DECLINE IN THE AFTERNOON BUT SUSTAINED BUYING INTERESTS HAS LED THE INDICES TO CLOSE AT THE HIGHER HIGHS OF THE DAY, EVEN THOUGH THERE WAS AN INCLINE OF AROUND 50 POINTS IN NIFTY WITH BREADTH BEING POSITIVE THE VOLUMES IN THE NIFTY WERE THE LEAST SINCE 04 JAN 11.

TODAY MARKETS WOULD OPEN POSITIVE AND REMAIN IN POSITIVE TERITORRY, IF NIFTY OPENS ABOVE 5555 THEN LIKELY TO MOVE UP TO 5576 AND MOVE ABOVE THIS POINT WOULD TAKE NIFTY TO 5585 LEVELS, IF NIFTY TRADES ABOVE 5600 THEN LIKLEY TO MOVE UP BY ANOTHER 50 POINTS ELSE 5600 WOULD ACT AS TOUGH RESISTANCE. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5520 LEVELS LIKELY TO DECLINE TO 5500 LEVELS AND BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 5465 LEVELS AND ANY TRADE BELOW 5450 WOULD WEAKEN THE MARKETS.

INTRADAY TIPS FOR 24 MARCH 2011

GOOD MORNING !!!

MARKETS OPENED AS EXPECTED, INDICES INITIALLY SLIPPED TO THEIR INTRA-DAY LOW LEVELS IN THE OPENING MOMENTS OF THE TRADE TRACKING WEAK CUES FROM THE GLOBAL CUES AND TOWERING CRUDE OIL PRICES ON CONCERNS THAT CONFLICTS IN MIDDLE EAST COULD FURTHER TIGHTEN THE SUPPLIES. HOWEVER, ON REPORTS THAT BILLIONAIRE INVESTOR WARREN BUFFET INTENDS TO USE THE HUGE CASH PILE OF HIS FLAGSHIP FIRM BERKSHIRE HATHAWAY TO ACQUIRE COMPANIES IN INDIA, AN INVESTMENT DESTINATION BUFFETT FEELS IS TOO BIG TO BE CALLED AN EMERGING MARKET; MARKETS SOON STAGED A STRONG AND STABLE PULLBACK THEREAFTER LED BY GAINS IN BANKING, FMCG, HEALTHCARE AND METAL STOCKS. THE INDICES GRADUALLY GAINED TRACTION AND SAILED BEYOND THE CRUCIAL SUPPORT LEVELS IN THE INDICES, THERE WAS NO BOUTS OF PROFIT BOOKING THAT TOOK PLACE IN THE MARKETS AND MARKETS MANAGED TO CLOSE AT THE HIGHER HIGHS OF THE DAY WHICH IS CONSIDERED TO BE A VERY GOOD CLOSING, THE BREADTH OF THE MARKET WAS POSITIVE.

TODAY MARKETS WOULD OPEN POSITIVE AND REMAIN ON THE POSITIVE SIDE. IF NIFTY TRADES ABOVE 5500 THEN LIKELY TO MOVE UP TO 5528 LEVELS AND THEN TO 5547 LEVELS ANY BREAK ABOVE 5550 WOULD TAKE NIFTY TO 5581 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5493 THEN LIKELY TO MAKE ITS JOURNEY TO 5472 LEVELS AND THEN TO 5450 WHICH TODAY MAY NOT BE POSSIBLE BUT ONE HAS TO BE VERY CAUTIOUS IN THE MARKETS THOUGH THIS SHORT TERM PULL BACK MAY CONTINUE FOR THIS WEEK BUT THE OVERALL POSITION IN THE MARKETS STILL REMAIN WEAK AND WE MAY HEAD DOWN ONCE AGAIN, EVEN THOUGH IT IS VERY POSITIVE IN THE MARKETS FOR TIME BEING IT DOESN’T TAKE TOO LONG TO WEAKEN SO BE AWARE OF THIS POINT THAT THERE MAY BE A DRAG IN THE INDICES GOING FORWARD SO DON’T ADD TOO MANY POSITIONS ON THE LONG TERM HORIZON. ONE CAN TAKE POSITION ON INTRADAY TO VERY SHORT TERM. CRUDE AGAIN IS ONE OF THE BIGGEST CONCERNS IN THE MARKETS WITH THE GLOBAL UNCERTAINTY.

INTRADAY TIPS FOR 23 MARCH 2011

GOOD MORNING!!!

INDICES RECOVERED IN THE OPENING TRADE TAKING LEADS FROM THE OVERNIGHT UPSURGE IN THE US MARKETS WHICH GARNERED DECENT PROFITS ON REPORTS OF STABILIZING NUCLEAR CRISIS IN JAPAN ALONG WITH SOME ACQUISITION REPORT. THE INDICES GRADUALLY GAINED TRACTION AND CONQUERED THE CRUCIAL SUPPORT LEVELS OF 5,400 AND TRADED ABOVE THESE LEVELS FOR MOST PART OF THE DAY. PROFIT BOOKING WERE WITNESSED IN LATE TRADE WHEN THE FRONTLINE INDICES TOUCHED INTRA-DAY HIGHS WHICH DRAGGED THE BOURSES BELOW CRUCIAL SUPPORTS. HOWEVER, SOME SHORT COVERING IN DYING MINUTES HELPED THE INDICES TO SNAP THE THREE DAY LOSING STREAK WITH GAINS OF ALMOST A PERCENT. MARKETS BREADTH WAS POSITIVE, WITH SUGARS MOVING LARGELY ON GOVERNMENT BILL OF EXPORTING.

TODAY MARKETS WOULD OPEN FLAT TO POSITIVE AND REMAIN POSITIVELY BIASED UNTIL 5400 LEVELS ARE HELD. IF NIFTY TRADES BELOW 5400 THEN LIKELY TO COME DOWN TO 5377 AND BREACH BELOW THIS LEVEL WOULD DRAG TO 5360 LEVELS AND ANY BREAK BELOW THIS LEVEL WOULD WEAKEN NIFTY AND ONE IS ADVISED TO STAY AWAY FROM LONGS AT THIS STAGE AND CAN CARRY FORWARD SHORTS. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5440 THEN LIKELY TO MAKE AN UPMOVE TO 5468 LEVELS AND THEN TO 5490 LEVELS. THE ONLY CONSTRAINT IN THE MARKETS NOW IS CRUDE SURGING HIGHER AND HIGHER DAY BY DAY WHICH IS GOING TO ADD ON HUGE PRESSURE ON INDIAN MARKETS. HOPEFULLY WARREN BUFFET WOULD ADD ESSENCE TO THE INDIAN MARKETS, ANOTHER DYNAMIC PERSONALITY OF THE WORLD MR BILL GATES WOULD JOIN HIM IN THE LAST LEGS OF HIS VISIT WHICH WOULD ADD FURTHER GROWTH TO THE INDIAN MARKETS. EXPECTING SOME POSITIVE VIBRATIONS TO ADD TO THE INDIAN MARKETS IN THE WEEK AHEAD.

INTRADAY TIPS FOR 22 MARCH 2011

GOOD MORNING!!!

INDICES BOUNCED BY OVER 100 POINTS IN THE OPENING TRADE ON EMERGENCE OF BUYING IN THE FRONT END STOCKS WHICH GOT SUPPORT FROM ASIAN PEERS. HOWEVER, THE FRONTLINE INDICES IMMEDIATELY ERASED ALL THE OPENING SESSION GAINS AND DRIFTED INTO THE RED TO TOUCH THE LOW POINT OF THE DAY. SELECTIVE BUYING IN SOME UNDERVALUED SHARES THEREAFTER HELPED THE INDEX CLAW BACK IN TO THE GREEN TERRITORY IN THE LATE MORNING SESSION. AFTER GYRATING IN A NARROW BAND AND TRADING IN THE GREEN FOR SOME TIME, THE FRONTLINE INDICES SLIPPED BACK INTO THE RED AS INVESTORS TOOK PROFITS OFF THE TABLE IN THE LATE HOURS OF TRADE AND MANAGED TO CLOSE WITH A MARGINAL LOSS. THE BREADTH OF THE MARKET REMAINED NEGATIVE.

TODAY MARKETS WOULD BE RANGE BOUND UNTIL IT BREACHES UPSIDE RANGE OF 5425 AND DOWNSIDE RANGE OF 5350 LEVELS. IF NIFTY TRADES ABOVE 5425 THEN LIKELY TO MOVE UP TO 5460 LEVELS AND THEN TO 5500 LEVELS. IF NIFTY CLOSES ABOVE 5500 LEVELS ONE CAN SEE SOME BARGAIN HUNTING AND FRESH LONGS TO BUILD IN THE MARKET. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5350 THEN LIKLEY TO COME DOWN TO 5310 AND BREAK BELOW THIS LEVEL WOULD DRAG NIFTY DOWN TO 5258 LEVELS, ANY CLOSE BELOW 5300 IS CONSIDERED TO BE MUCH MORE DOWN SIDE IN A SHORT TIME, ONE SHOULD BE CAREFUL IF NIFTY CLOSES BELOW 5300 LEVELS.

INTRADAY TIPS FOR 21 MARCH 2011

GOOD MORNING!!!

MARKETS GOT OFF TO A GOOD START ON THE OPENING TRADE, WITH FINANCE AND OTHER SECTOR STOCKS RISING ON THE BACK OF SUPPORTIVE CUES FROM OVERNIGHT US MARKETS WHICH SURGED AROUND ONE AND HALF A PERCENT ON THE BACK OF THE SLEW OF GOOD ECONOMIC REPORTS THAT HELPED TO PUT ASIDE THE FEAR OF JAPANESE CRISIS. HOWEVER, WITH THE UNPLEASANT REPORTS ON THE RELIANCE INDUSTRIES ON PRODUCTION FROM KG BASIN HAS PUT HUGE PRESSURE ON FRONTLINE INDICES AND ERASED ALL THE GAINS ALONG WITH THIS OTHER THINGS WHICH HAS PLAYED THE SPOIL SPORT WERE OPPOSITION RAISING QUESTIONS ON CONGRESS, WHICH IS ALREADY BURDENED BY CORRUPTION CHARGES, CULPABILITY AFTER WIKILEAKS CABLES REVELATION. THE BOURSES TOUCHED INTRADAY LOWS IN THE DYING HOURS OF SESSION AS THEY BREACHED THE CRUCIAL SUPPORT LEVELS. MARKET BREADTH REMAINED NEGATIVE.

TODAY MARKETS WOULD BE RANGE BOUND AND VOLATILE. IF NIFTY TRADES ABOVE 5425 THEN LIKELY TO MAKE AN UPMOVE TO 5455 LEVELS AND THEN TO 5475 LEVELS AND ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5500. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5379 THEN LIKELY TO COME DOWN TO 5350 LEVELS AND BELOW THIS POINT WOULD TAKE NIFTY FURTHER TO 5321 LEVELS AND ANY BREAK BELOW THIS POINT WOULD THEN TAKE NIFTY TO 5275 AND ANY CLOSE BELOW THE PREVIOUS CLOSE WE CAN SEE NIFTY TO SLIDE DOWN VERY FAST IN VERY SHORT SPAN OF TIME.

POSITIONAL TRADES
BUY AMTEK INDIA TGT 90/95

INTRADAY TIPS FOR 18 MARCH 2011

GOOD MORNING!!!

MARKETS GOT OFF TO A GAP DOWN START AS INVESTORS SQUARED OFF POSITIONS TRACKING DISCOURAGING LEADS FROM THE OVERNIGHT US MARKETS THOUGH THERE WAS SOME SENSE OF RECOVERY SEEN IN THE MARKETS WHICH WAS VERY SHORT LIVED AFTER THE KEY POLICY RATES HIT THE STREETS INVESTORS HAVE OPTED TO TAKE PROFITS OFF THE TABLE FROM RATE SENSITIVE SECTORS LIKE BANKS, AUTO AND REALTY. THE BOURSES AFTER TOUCHING INTRADAY LOWS IN THE DYING HOURS PARED SOME PORTION OF DECLINE TO EVENTUALLY SETTLE WITH LOSSES OF OVER A PERCENT. MARKETS CARRIED FORWARD THIS WEEK’S TREND OF CLOSING IN THE NEGATIVE TERRITORY AFTER EVERY POSITIVE CLOSE, WHICH HAS MADE INVESTORS FEEL VERY INSECURE.

TODAY MARKETS WOULD BE VERY RANGE BOUND AND VOLATILE. IF NIFTY TRADES ABOVE 5490 THEN LIKELY TO MAKE AN UPMOVE TO 5518 LEVELS AND ANY TRADE ABOVE THIS POINT WOULD TAKE NIFTY TO 5540 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5440 LEVELS THEN CAN DRAG NIFTY DOWN TO 5420 AND THEN TO 5394 LEVELS ANY TRADE BELOW 5400 IS CONSIDERED TO BE VERY WEAK AND CLOSE BELOW 5400 CAN LEAD NIFTY TO 5170 LEVELS.

INTRADAY TIPS FOR 17 MARCH 2011

GOOD MORNING!!!

MARKETS GOT OFF TO AN OPTIMISTIC START TRACKING REBOUND IN OTHER ASIAN MARKETS ON BARGAIN BUYING AND A FURTHER DECLINE IN CRUDE OIL PRICES. THE MARKETS CONTINUED TO TRADE FIRM THROUGH THE DAY’S TRADE THERE WAS CONTINUAL AND SUSTAINED BUYING IN SEVERAL FRONT LINE STOCKS AND ELEGANTLY RECOVERED MAJORITY OF THE PREVIOUS DAYS LOSSES AND MANAGED TO CROSS THE CRUCIAL RESISTANCE LEVELS. BUT AFTER SURPASSING THE CRUCIAL RESISTANCE LEVELS AND TOUCHING INTRADAY HIGHS IN THE LAST TRADING SESSION PARED SOME PORTION OF THEIR GAINS DUE TO REBOUND IN CRUDE OIL PRICES COUPLED WITH SOMBER CUES FROM THE EUROPEAN PEERS. EVENTUALLY MARKETS MANAGED TO PERFORM LARGELY IN LINE WITH ASIAN PEERS AND SETTLE WITH OVER A PERCENT GAIN. BREADTH OF THE MARKET REMAINED POSITIVE BUT THE VOLUMES WERE VERY BLEAK.

TODAY MARKETS WOULD BE NEGATIVE TRACKING WEAK US AND EUROPE CLOSING ALONG WITH WEAK OPENING IN ASIAN PEERS. NIFTY MAY BE UNDER CONTINUAL PRESSURE AS WE ALSO HAVE POLICY REVIEW FROM CENTRAL BANK. IF NIFTY TRADES BELOW 5518 THEN LIKLEY TO COME DOWN TO 5482 AND THEN BELOW THAT WE CAN SEE NIFTY AT 5450 LEVELS AND ANY TRADE BELOW 5440 WOULD DRAG NIFTY TO 5400 LEVELS, STAY CAUTIOUS AROUND 5440 LEVELS AS THIS IS A MINOR SUPPORT FOR NIFTY AND TRADE BELOW THIS LEVEL WOULD DRAG NIFTY TO 5400 LEVELS BUT ANY TRADE BELOW 5400 LEVELS WOULD DRAG NIFTY BELOW 5170 LEVELS IN A VERY SHORT TIME. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5550 THEN LIKLEY TO MAKE AN UP MOVE TO 5576 LEVELS AND ANY TRADE ABOVE 5576 WE CAN SEE AT 5600. STAY CAUTIOUS IN THE MARKET WE MAY HAVE GREAT VOLATILITY.

INTRADAY TIPS FOR 16 MARCH 2011

GOOD MORNING!!!

MARKETS GOT OFF TO A GAP DOWN START TRACKING THE DISAPPOINTING LEADS FROM JAPANESE MARKETS WHICH TOOK AN EXTREME DIVERGENCE OF OVER 12% AS THE NATION CONTINUE TO COPE WITH THE AFTERMATH OF LAST WEEK'S DEVASTATING EARTHQUAKE AND MASSIVE TSUNAMI FOLLOWED BY A NEW EXPLOSION RESULTING IN RADIATION LEAK AT THE FUKUSHIMA NUCLEAR POWER PLANT. INITIALLY MARKETS SLIPPED IN DEEP RED AND WITHIN FEW MINUTES OF IT STARTED GAINING THE MOMENTUM IN THE FRONT END STOCKS ON ROBUST BUYING ESPECIALLY IN RELIANCE COUNTER AND RECOVERD ALMOST 130 POINTS IN NIFTY AND MORE THAN 300 POINTS IN SENSEX BUT WITH THE EUROPE MOVING CONTINUOUSLY ON TO LOWER LOWS WHICH HAD BLEEDED ALMOST 6% MARKETS STARTED GIVING AWAY THE RECOVERED GAINS AND POSTED DECENT LOSSES ON THE INDICES. VOLUMES IN THE MARKETS WERE GOOD ENOUGH AND BREADTH REMAINED VERY WEAK FOR THE ENTIRE DAY BARRING VERY FEW STOCKS. THE ONLY MARKET WHICH GOT RECOVERED IN THE LAST DAYS TRADE AFTER THE INITIAL DOWNFALL WAS INDIAN MARKETS. BANKING AND REALITY ALONG WITH AUTO STOCKS WERE UNDER PRESSURE AHEAD OF RBI’S MID-QUARTERLY POLICTY REVIEW TOMORROW THE 17 MARCH 2011

TODAY WE MAY OPEN GAP OPENING TRACKING POSITIVE OPENING OF ALL ASIAN PEERS. IF NIFTY TRADES ABOVE 5460 LEVELS THEN LIKELY TO MAKE ITS UPMOVE TO 5486 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5514 LEVELS AND FURTHER TO 5565 LEVELS ANY CLOSE ABOVE 5518 IS A POSITIVE SIGN IN THE MARKET IN THE DAY AHEAD. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5440 THEN LIKELY TO COME DOWN TO 5409 AND ANY BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 5378 AND ANY CLOSE BELOW 5400 IS A WEAK SIGN IN NIFTY AND WE MAY HEAD DOWN BELOW 5175 LEVEL IN A VERY SHORT TIME. ONE OF THE VERY CRUCIAL SUPPORT FOR NIFTY IS 5400 LEVELS, SO STAY CAUTIOUS AT THIS LEVEL AND ON THE UPSIDE NIFTY MAY RESIST 5500 LEVELS. STAY CAUTIOUS ON THE SECTORS LIKE AUTO, BANKING AND REALITY THESE MAY BE WEAK.

INTRADAY TIPS FOR 15 MARCH 2011

GOOD MORNING!!!

MARKET GOT OFF TO A SOFT START TRACKING ASIAN PEERS WHICH WERE TRADING IN SUBDUED NOTE. MARKETS SOON RECOVERED FROM EARLY MORNING'S LOSSES AND GRADUALLY KEPT GAINING STEAM ON THE BACK OF ROBUST BUYING IN AVIATION, ENERGY AND AUTO STOCKS, OWING TO A FALL IN OIL PRICES. THE BUYING INTERESTS GOT REINFORCED IN THE SECOND HALF OF TRADE AS THE INDICES WERE PROPELLED BY HEFTY POSITION BUILD UP IN HEAVYWEIGHT RELIANCE INDUSTRIES AND WITH SOME UNWINDING OF POSITIONS WHICH ELEVATED THE MARKETS FURTHER. EVENTUALLY MARKETS STAGED A STRONG RECOVERY, THOUGH THERE WAS A VERY GOOD RECOVERY SEEN ON THE INDICES FRONT THERE STILL REMAINS A WORD OF CAUTION AS THE MARKETS WENT UP WITH NO MUCH VOLUMES WHICH IS STILL A MATTER OF CONCERN. THOUGH THE BREADTH OF THE MARKETS REMAIN POSITIVE IT WAS NOT THE WAY IT SHOULD BE WITH A 86 POINT INCLINE IN THE NIFTY, THERE IS STILL LACK OF CONFIDENCE ON THE INVESTORS PART AS LONG AS THIS GROWS UP WE CANT REALLY BE SURE OF MARKETS TO MOVE HIGHER FROM THIS PLACE.

TODAY NIFTY MAY OPEN ON A NEGATIVE NOTE AND REMAIN UNDER PRESSURE AT EVERY HIGHER LEVELS, IF NIFTY TRADES ABOVE 5576 ONLY THEN IT CAN MOVE UP TO 5600 LEVELS ON THE UPSIDE AND ON THE FLIP SIDE IF NIFTY TRADES BELOW 5545 LEVELS LIKELY TO COME DOWN TO 5518 LEVELS AND THEN TO 5500 LEVELS AND ANY BREAK BELOW 5496 WOULD DRAG NIFTY TO 5450 LEVELS. BANK NIFTY LIKELY TO BLEED AS THERE IS A RAKE HIKE EXPECTED IN DAY AFTER TOMORROW RBI POLICY REVIEW MEET (17 MARCH 2011) BY ATLEAST 25 BASIS POINT. ONE CAN REMAIN SHORT ON EVERY RISE IN BANK NIFTY. AND WE DON’T SEE MUCH UPSIDE FROM HERE EVEN IN THE MARKETS ONLY IF RBI DOESN’T HIKE THE RATES THEN WE CAN SEE A GOOD RALLY, ELSE WE ARE LIKELY TO SUCCUMB TO PRESSURE.

INTRADAY TIPS FOR 14 MARCH 2011

GOOD MORNING!!!

MARKETS GOT OFF TO A GAP DOWN START TRACKING OVERNIGHT US MARKETS WHILE THE WEAKER-THAN-FORECASTED JAPANESE GDP NUMBERS WEIGHED ON THE REGIONAL PEERS. MAJORITY OF THE STOCKS RECOVERED FROM EARLY MORNING'S LOSSES AFTER THE DATA RELEASED BY GOVERNMENT SHOWED THAT INDUSTRIAL PRODUCTION GREW BY 3.7 PER CENT IN JANUARY AS AGAINST AN UPWARDLY REVISED RATE OF 2.5% IN DECEMBER. HOWEVER, THE INDICES CRUMBLED DEEP IN TO THE RED AS PANIC SELLING TOOK CENTER STAGE AFTER NEWS OF A MAJOR EARTHQUAKE IN JAPAN AND FAILED TO REGAIN. MARKETS CONTINUED TO STAGGER UNDER THE TREMENDOUS GLOBAL PRESSURE AS ONE DISCOURAGING EVENT AFTER ANOTHER POPPED UP IN DAYS TRADE WHICH IS LEADING THE MARKETS TO A NEGATIVE TERRITORY EVEN AFTER A POSITIVE START OR FROM A RECOVERY PHASE. BREADTH OF THE MARKETS REMAINED WEAK FOR THE ENTIRE DAY AND CLOSED MUCH WEAKER AT THE END.

TODAY MARKETS WOULD REMAIN RANGE BOUND AND VOLATILE. IF NIFTY TRADES BELOW 5450 THEN LIKELY TO COME DOWN TO 5400 LEVELS AND BREACH BELOW THIS LEVEL WOULD TAKE NIFTY DOWN FURTHER TO 5370 LEVELS AND ANY CLOSE BELOW 5400 WOULD MAKE NIFTY MUCH WEAKER IN THE DAYS AHEAD. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5470 LEVELS THEN LIKELY TO INCLINE TO 5492 AND THEN TO 5518 ANY TRADE ABOVE 5518 WOULD TAKE NIFTY FURTHER UPSIDE.

BUY TATA COFFEE TGT 980/1050
BUY TATA GLOBAL SL 100.40 TGT 104.60/107/108.60

INTRADAY TIPS FOR 11 MARCH 2011

GOOD MORNING!!!

MARKETS GOT OFF TO A NEGATIVE START TRACKING WEAK GLOBAL CUES AS INVESTORS AT LARGE FELT THE HEAT OF BOILING CRUDE OIL PRICES AMID THE PROLONGED CIVIL UPHEAVAL IN LIBYA, RISING CRUDE OIL PRICES WAS THE BIGGEST CONCERN FOR THE INVESTORS AT LARGE SINCE HIGHER CRUDE PRICES MEAN WORSENING CURRENT ACCOUNT DEFICIT FOR THE IMPORTING ECONOMIES. AFTER THE GAP DOWN OPEN INDICES SLIPPED TO MUCH LOWER LEVELS TO FRESH INTRADAY LOWS AFTER A WEAK START AND LATER MARKETS SWUNG WITHIN A NARROW RANGE LATER TOUCHED THEIR INTRADAY HIGH LEVELS IN SECOND HALF BUT GOT DRAGGED TO LOWER LEVELS ON REPORTS THAT TROOPS LOYAL TO LIBYAN LEADER MUAMMAR GADDAFI LAUNCHED YET ANOTHER BOMBARDMENT NEAR OIL FACILITIES IN RAS LANUF. EVENTUALLY INDICES SETTLED LOWER BY OVER HALF A PERCENT LOSS. MARKET BREADTH REMAINED NEGATIVE AND THERE WERE NO GREAT VOLUMES IN THE MARKETS.

TODAY MARKETS WOULD OPEN IN A NEGATIVE TERRAIN TRACKING WEAK CLOSING OF US AND EUROPE MARKETS WHICH BLEEDED LAST NIGHT. IF NIFTY TRADES BELOW 550 LEVELS WE ARE BOUND TO SEE NIFTY TO SLIDE DOWN TO 5470 AND THEN TO 5455 LEVELS AND FURTHER BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5425 LEVELS AND THEN TO 5400 LEVELS, NIFTY MAY TAKE A GOOD SUPPORT AROUND 5400 LEVELS AND IF NIFTY HAPPENS TO BREAK THIS POINT THEN WOULD LIKELY TO COME DOWN MUCH MORE. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5520 THEN LIKELY TO MOVE UP TO 5540 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT TO 5566 LEVELS. ONE IS ADVISED TO BE CAUTIOUS ON THE UPSIDE FOR NOW AS LONG WE SEE SOME GOOD MOMENTUM ON THE BUYING FRONT IT IS WISE ENOUGH TO STAY OUT OF LONG AT THESE LEVELS AS THE UNDERTONE STILL REMAINS WEAK.

INTRADAY TIPS FOR 10 MARCH 2011

GOOD MORNING!!!

MARKETS STARTED ON A POSITIVE NOTE CROSSING THEIR RESPECTIVE PSYCHOLOGICAL LEVELS OF 18500 AND 5500 RESPECTIVELY IN START OF THE TRADE. HIGH BETA STOCKS TOOK THE LEAD OF THE MARKETS WHILE IT AND TECH STOCKS HAVE WITNESSED WEAKNESS ON DOLLAR WEAKNESS. IN THE LATER PART OF THE TRADING SESSION THERE SEEMED SOME PROFIT BOOKING STARTED WITH THE NEWS OF SOME ESCALATION IN THE LIBYAN UNREST AND THE BUZZ OF GOVERNMENT PLAN TO RE-REGULATE THE PETROL PRICES, THOUGH THE RATE SENSITIVE STOCKS TRIED HARD BUT INTENSE SELLING IN THE HEALTHCARE, OIL & GAS AND IT SECTOR STOCKS TOOK THE MARKETS DOWN TOUCHING THEIR INTRADAY LOWS. THE BROADER INDICES CONTINUED FIRM THROUGHOUT THE DAY AND HELPED THE MARKETS TO REMAIN FIRM THOUGH THE ENTIRE TRADING DAY WAS WITH FULL OF VOLATILITY, OVERALL THE BREATH OF THE MARKET REMAINED POSITIVE EVEN AFTER SOME SELL-OFF AT THE FAG END OF THE TRADING SESSION WHICH TOOK MARKETS TO NEGATIVE BUT MANAGED TO CLOSE FLAT AT THE END OF THE TRADE.

TODAY MARKETS WOULD BE VOLATILE AND RANGE BOUND, IF NIFTY TRADES BELOW 5530 MAY SLIDE DOWN TO 5504 LEVELS AND BREAK BELOW 5500 LEVELS WOULD TAKE NIFTY TO 5476 AND THEN TO 5453 LEVELS BUT ANY CLOSE BELOW 5450 WOULD TAKE NIFTY FURTHER DOWNSIDE IN THE COMING WEEK ON THE FLIP SIDE IF NIFTY TRADE ABOVE 5570 THEN LIKELY TO MAKE AN UPMOVE TO 5592 AND THEN BREAK ABOVE 5600 WOULD MAKE ITS MOVE TO 5630 LEVELS. STAY CAUTIOUS ON EVERY UPSIDE AS THE UNDERTONE IS STILL NEGATIVE.

INTRADAY TIPS FOR 09 MARCH 2011

GOOD MORNING!!!

INDICES STARTED ON A QUIET NOTE AFTER BAD CLOSING ON MONDAY ON THE BACK OF GEO-POLITICAL CONCERNS, RISING OIL PRICES AND DOMESTIC POLITICAL TURMOIL, AS INVESTORS REMAINED WATCHFUL GIVEN THAT THE CUES FROM OVERNIGHT US MARKETS TOO REMAINED SUBDUED. HOWEVER THE FRONTLINE INDICES GAINED TRACTION IMMEDIATELY AFTER THE FLAT START AS CRUDE OIL PRICES SHOWED SOME SIGNS OF EASING IN THE EARLY HOURS. AFTER GYRATING IN A NARROW BAND FOR A LONG TIME, THE MARKET MOVED HIGHER IN LATE AFTERNOON TRADE AS INVESTORS RESORTED TO HEFTY BUYING IN FUNDAMENTALLY STRONG AND BEATEN DOWN SHARES. MARKET BREADTH WAS POSITIVE.

MATERIALIZED EFFORTS ON SEAT SHARING BETWEEN RULING UPA ALLIES CONGRESS AND THE DMK HAS COME TO AN END ON A POSITIVE NOTE WHICH WILL BOOST THE INDIAN MARKETS IN THE INITIAL OPENING OF THE TRADE. MARKETS TODAY WOULD OPEN POSITIVE TRACKING NOT ONLY THE POLITICAL ISSUE BUT ALSO THE POSITIVE SIGNS OF US AND OTHER MARKETS. IF NIFTY TRADES ABOVE 5543 THEN LIKELY TO MOVE UP TO 5561 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5597 LEVELS AND ANY BREAK ABOVE THIS WOULD FURTHER TAKE NIFTY TO 5614 LEVELS. STAY CAUTIOUS AT EVERY HIGHER LEVEL IN NIFTY FOR NOW WE WILL HAVE TO WITNESS SOME DOWNSIDE AGAIN IN A VERY SHORT RUN. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5532 THEN LIKELY TO MOVE DOWN TO 5512 LEVELS AND THEN TO 5480 AND ANY BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 5460 LEVELS AND ANY CLOSE BELOW THIS POINT WOULD TAKE NIFTY TO FURTHER DOWNSIDE IN THE NEXT FEW SESSIONS.

BUY APOLLO TYRES SL 60 TGT 73 (POSITIONAL)
BUY TECHM SL 738 TGT 765/784/792 (SHORT TERM 880) ** MUST BUY

INTRADAY TIPS FOR 08 MARCH 2011

GOOD MORNING!!!

INDICES MADE A NERVOUS START AS INVESTORS REACTED ON SATURDAY’S REPORTS OF DMK'S DECISION TO WITHDRAW ITS SIX MINISTERS FROM THE UNITED PROGRESSIVE ALLIANCE (UPA) GOVERNMENT WHICH DRAGGED THE INDICES LOWER AS TRADING PROGRESSED. WORRYING INDIAN POLITICAL SITUATION TORMENTED LOCAL SENTIMENTS AND ADDING TO THIS WAS THE OTHER MOST CRUCIAL PROBLEM I.E., CRUDE SORING TO ALMOST 29 MONTH HIGH HITTING ALMOST 107$ FOR A BARREL DRAGGED THE INDICES TO INTRA-DAY LOWS. HOWEVER, MARKETS BOUNCED BACK ON SOME SHORT COVERING IN THE LATE HOURS OF TRADE AND EVENTUALLY SNAPPED THE DAY WITH LOSSES. BREADTH OF THE MARKET REMAINED WEAK. NOW INVESTORS ARE VERY MUCH WORRIED ABOUT CPI (CRUDE PRICES, POLITICAL UNCERTAINITY, INFLATION FEARS) THESE THINGS WILL DEFINITELY HAUNT THE MARKETS TILL THE TIME THINGS STABILIZE.

TODAY MARKETS WOULD OPEN NEGATIVE AND TRADE IN A NARROW BROAD RANGE AS LONG AS NIFTY BREAKS DOWN THE CRUCIAL LEVELS. IF NIFTY TRADES BELOW 5440 THEN WE CAN SEE FURTHER DOWNSIDE IN THE NIFTY 5400 LEVELS AND ANY BREAK BELOW THIS LEVEL WE CAN SEE NIFTY TO SLIDE DOWN TO MUCH LOWER LEVELS, ONE CAN STAY SHORT IF NIFTY CLOSES BELOW 5440 LEVELS. ON THE POSITIVE SIDE AS LONG AS NIFTY TRADES ABOVE 5500 ONE IS ADVISED TO STAY AWAY FROM LONGS. ON THE POSITIONAL FRONT NIFTY HAS WEAKEND AND ONE IS ADVISED TO STAY OUT OF LONG AT THE MOMENT.

BUY DR REDDY ABOVE 1610 SL 1603 TGT 1627/1641/1650
BUY UBL SL 479 TGT 495/506/512*

INTRADAY TIPS FOR 07 MARCH 2011

GOOD MORNING!!!

INDICES OPENED ON A GAP UP NOTE TRACKING EUPHORIC ASIAN MARKETS WHICH TRADED WITH RENEWED STRENGTH TRACKING POSITIVE CLOSING OF AMERICAN MARKETS. MARKETS COULDN’T SUSTAIN THE GAINS FOR TOO LONG AND STARTED TURNING NEGATIVE IN THE AFTERNOON SESSION AND LATER CONTINUED TO SUSTAIN IN A NARROW RANGE BOUND. THE FRONTLINE INDICES FAILED TO HOLD ON TO THE INITIAL MOMENTUM AND GRADUALLY SURRENDERED THEIR GAINS THROUGH THE DAY’S TRADE. REPORTS OF FRESH VIOLENCE FROM NORTH YEMEN IN THE DYING HOURS OF TRADE ERASED THE GAINS WITH WHICH LOCAL BOURSES TRADED AND EVENTUALLY FINISHED ON AN ABSOLUTELY FLAT NOTE. ONE OF THE KEY FACTORS OF THE MARKETS WERE LOW VOLUMES IN TRADE AND THE BREADTH OF THE MARKETS WAS ALSO WEAK

TODAY MARKETS WOULD OPEN NEGATIVE NOT ONLY TRACKING WEAK GLOBAL CUES BUT ALSO WITH THE POLITICAL TURMOIL IN COUNTRY AS DMK IS WITHDRAWING SUPPORT. THOUGH THIS IS NOT GOING TO IMPACT THE GOVERNMENT MUCH AS THERE ARE MUCH MORE THAN REQUIRED NUMBERS OF MP WHO ARE WILLING AND READY TO SUPPORT GOVERNMENT BUT INITIALLY THIS MAY PUT THE MARKET UNDER PRESSURE. IF NIFTY TRADES BELOW 5528 THEN LIKELY TO COME DOWN TO 5494 LEVELS AND ANY BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 5440 LEVELS, IF NIFTY CLOSES BELOW 5450 LEVELS ONE CAN SEE MUCH MORE SELLING IN THE DAYS AHEAD. ON THE UPSIDE IF NIFTY TRADES ABOVE 5555 THEN LIKLEY TO MOVE UP TO 5575 LEVELS AND ANY TRADE ABOVE THIS POINT WOULD TAKE NIFTY TO 5610 LEVELS AND FURTHER BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO MUCH HIGHER LEVELS, WHICH IS REMOTE IN TODAYS TRADE.

INTRADAY TIPS FOR 03 MARCH 2011

GOOD MORNING!!!

MARKETS BEGAN THE DAY ON A POWERFUL NOTE TRACKING CUES FROM THE ASIAN MARKETS WHICH CLIMBED AFTER INVESTORS TURNED OPTIMISTIC ON THE BACK OF OPTIMISTIC LEADS FROM THE OVERNIGHT US MARKETS AND DECLINE IN CRUDE PRICES. MARKETS STARTED ON A FIRM NOTE AND SCALED HIGHER AND HIGHER AS THE DAY PROGRESSED, MARKETS GATHERED STRENGTH TO STRENGTH AND THERE WAS COMPLETE ABSENCE OF PROFIT BOOKING WHICH HAS FURTHER IGNITED MARKETS TO REACH HIGHER HIGHS IN THE MARKET AND REGISTERED THE BIGGEST INTRADAY GAINS IN THE YEAR, THE MARKET BREADTH WAS EXTREMELY OPTIMISTIC. ALL-IN-ALL A FANTASTIC DAY FOR THE MARKETS.

TODAY MARKETS WOULD OPEN FLAT AND REMAIN RANGE BOUND INITIALLY. IF NIFTY TRADES ABOVE 5556 THEN LIKELY TO MOVE UP TO 5590 LEVELS AND BREAK ABOVE THIS POINT NIFTY WOULD PHASE RESISTANCE AROUND 5600 LEVELS AND TRADE ABOVE 5600 LEVELS WOULD TAKE IT TO 5642 LEVELS AND ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5530 LEVELS WE CAN SEE NIFTY TO COME DOWN TO 5490 LEVELS AND TRADE BELOW THIS LEVEL WOULD DRAG NIFTY DOWN TO 5450 LEVELS ONE HAS TO STAY CAUTIOUS IF NIFTY TRADES BELOW 5450. KEY POINT IN NIFTY WHICH ONE SHOULD REMEMBER IS NIFTY STILL DIDN’T CATCH THE STRENGTH AS THE UNDERTONE STILL REMAINS BEARISH ONE HAS TO BE VERY CAUTIOUS IN THE NIFTY WE ARE LIKELY TO HEAD DOWN.

BUY JSWSTEEL SL 937 TGT 960/974/988
BUY RECLTD ABOVE 251 SL 248 TGT 255/259/265
SELL UNION BANK BELOW 323 SL 329 TGT 321/317/314 (VERY SHORT TERM 300)

INTRADAY TIPS FOR 01 MARCH 2011

GOOD MORNING!!!

MARKETS BEGAN THE DAY ON A POSITIVE NOTE AHEAD OF BUDGET WHICH WAS EARLIER SUPPORTED WITH POSITIVE US MARKETS. FRONTLINE COUNTERS CAPITALIZED THE MOMENTUM AS FINANCE MINISTER TABLED THE PROGRESSIVE AND BALANCED UNION BUDGET 2011-12 IN THE LOK SABHA. SOON AFTER FM’S SPEECH THE MARKETS RALLIED AROUND 600 POINTS IN A EUPHORIC ATMOSPHERE AS PARTICIPANTS RESORTED TO HEFTY BUYING. HOWEVER, THE INDICES SOON COULDN’T HOLD THE GAINS AND WENT INTO TAILSPIN AS THE FINER PRINT BECAME CLEARER AND THE FORCE OF PROFIT-BOOKING AT HIGHER LEVELS TOOK ITS TOLL. IT WAS COMPLETE ROLLER-COASTER RIDE IN THE MARKETS FOR THE TRADERS. THERE WAS OVER 400 POINTS SWING IN NIFTY WHICH, EVENTUALLY ENDED WITH MODERATE GAINS. THE MARKET BREADTH WAS POSITIVE.

BUDGET HIGHLIGHTS

BUDGET ON THE WHOLE – GST & DTC ROAD MAP ANNOUNCED ( POSITIVE FOR ECONOMY ) - FISC GAP, MKT BORROW NUMBERS BEATS MARKET EXPECTATIONS BUT LOOKS LIKE TOO OPTIMISTIC STILL THERE ARE DOUBTS WHETHER IT WOULD BE MET.

KEY TAKEAWAYS OF UNION BUDGET FOR 2011-12

GROWTH

* INDIAN ECONOMY SEEN GROWING 9% IN 2011-12, +/- 0.5%

* SEE FY11 GDP GROWTH AT 8.6%

* INDIA ECON GROWTH SEEN 8.75-9.25% FY12

* APR-JAN IMPORTS $273.6 BLN, UP 17.6%

* FY11 SERVICES SECTOR GROWTH SEEN 9.6%

* SEE INDUSTRIAL SECTOR GROWTH 8.1% IN FY11

* FY11 FARM GROWTH SEEN 5.4%

* FY11 FISCAL CONSOLIDATION IMPRESSIVE

* STRONGER FISCAL CONSOLIDATION NEEDED

* FY11 GROWTH SWIFT, BROAD-BASED

* INDIA ECON BACK TO PRE-CRISIS GROWTH TRAJECTORY

* SERVICES SECTOR CONTINUES TO GROW NEAR DOUBLE DIGITS

* DON'T SEE RESOURCES AS BIG PROBLEM, AT LEAST IN SHORT TERM

* IMPLEMENTATION GAP A KEY CHALLENGE

* "MUCH STILL NEEDS TO BE DONE", ESPECIALLY IN RURAL INDIA

* NEED TO IMPROVE SUPPLY OF AGRICULTURE TO MEET DEMAND

* NEED TO ENSURE SUSTAINED PRIVATE INVESTMENT

* ECONOMY RESILIENT TO EXTERNAL SHOCKS

* AUTO SECTOR GROWTH SEEN 30% IN FY11

* TO UP MANUFACTURING SHARE IN GDP TO 25% IN 10 YR VS 16%.

INFLATION

* FOOD INFLATION 9.3% IN JAN BUT STILL REMAINS A CONCERN

* MUST ADDRESS STRUCTURAL CONCERNS ON INFLATION MANAGEMENT

* EXPECT RBI MEASURES TO MODERATE INFLATION IN COMING MOS

* SEE AVERAGE INFLATION TO LOWER IN FY11

* HIGH FOOD PRICES REVEAL SHORTCOMING IN DISTRIBUTION

* WHOLESALE AND RETAIL PRICE DIFFERENCE NOT ACCEPTABLE

* CONSUMERS DENIED FALL IN PRICES USUALLY SEEN IN WINTER

* ONION, MAIZE, POULTRY PRICES HIGH IN SECOND HALF FY10

* INFLATION PERSISTS IN TWO DISTINCTIVE AREAS

* FOOD INFLATION 20.2% IN FEB .

FY12 OUTLAYS

* FY12 TOTAL SPEND 12.5 TRLN RUPEE

* TOTAL EXPENDITURE ESTIMATED AT 1.26 TRLN RUPEES IN FY12

* FY12 NON-PLAN SPEND 8.16 TRLN RUPEES, UP 10.9%

* FY12 PLAN SPEND 4.41 TRLN RUPEES, UP 18.3%

* 1.47 TRLN RUPEES GRANTS IN AID FY12

* TO PROVIDE 10 BLN RUPEES FOR JUSTICE DEPT IN FY12

* ALLOCATED 691.99 BLN RUPEE FOR DEFENCE CAPEX FY12

* ALLOCATED 1.64 TRLN RUPEE FOR DEFENCE FY12

* BACKWARD REGION GRANT FUND ALLOCATION UP AT 98.9 BLN RUPEE

* 1 BLN RUPEE FOR JAMMU, LADAKH PROJECTS FY12

* TO GIVE 80 BLN RUPEES FOR J&K DEVELOPMENT NEEDS

* ALLOCATED 80 BLN RUPEE FOR NORTHEAST, SPECIAL STATES

* ALLOCATED 2 BLN RUPEE FOR CLEAN ENERGY FUND

* 2 BLN RUPEES FOR CLEANUP OF IMPORTANT LAKES, RIVERS

* FY12 EDUCATION SECTOR ALLOCATION 520.57 BLN RUPEES

* ALLOCATION FOR SCHEDULED TRIBES HIKED TO 2.44 BLN RUPEE

* 2011-12 BHARAT NIRMAN ALLOCATION UP TO 580 BLN RUPEES

* ALLOCATED 1.61 TRLN RUPEES FOR SOCIAL SECTOR FY12

* ADDITIONAL 5 BLN RUPEE TO NATIONAL SKILL DEVELOPMENT FUND

* FY12 SARVA SHIKSHA ABHIYAN ALLOCATION 210 BLN RUPEES

* TO GIVE 210 BLN RUPEE FOR LITERACY MISSION FY12, UP 40%

* FY12 ALLOCATION FOR HEALTH 267.60 BLN RUPEES, UP 20%

* TO GIVE PSU BANKS 201.57 BLN RUPEE FOR TIER-I CAPITAL FY12

* TO GIVE 60 BLN RUPEE FY12 TO HELP PSU BKS' TIER 2 CAPITAL

* 3 BLN RUPEE TO STATES TO ROLL OUT E-STAMPING IN 3 YRS .

DIRECT TAX

* REVENUE LOSS FROM DIRECT TAX AT 115 BLN RUPEES

* MAT RAISED TO 18.5%

* SPECIAL ECONOMIC ZONES TO COME UNDER MAT

* CUT SURCHARGE ON DOMESTIC COS TO 5% FROM 7.5%

* 80 YRS AND ABOVE INDIVIDUALS TAX EXEMPT UPTO 500,000 RUPEE

* I-T EXEMPTION FOR SENIOR CITIZENS 250,000 RUPEES

* SENIOR CITIZEN TAX LIMIT NOW FOR 60 YEAR OLDS

* UP TAX EXEMPTION TO 180,000 RUPEES FY12

* NON-TAX RECEIPTS ESTIMATED AT 1.25 TRLN RUPEES IN FY12

* NET TAX TO CENTRE 6.64 TRLN RUPEES IN FY12

* FY12 NON TAX REVENUE 1.25 TRLN RUPEES

* FY12 GROSS TAX RECEIPTS 9.32 TRLN RUPEES, UP 24.9%

* TO INTRODUCE SIMPLER RETURNS FORM FOR PRESUMPTIVE TAX

* NO TAX RETURNS FOR SOME SALARIED PEOPLE SOON

* TWO MORE CENTRAL PROCESSING CENTRES FOR INCOME TAX FY12

* INVEST-LINKED DEDUCTION FOR AFFORDABLE HOUSING PROJECTS

* TAX SOP FOR 20,000 RUPEE INVEST IN INFRA BOND STAYS

* LOW WITHHOLDING TAX OF 5% FOR NOTIFIED INFRA FUNDS

* I-T DEDUCTION FOR INFRA BOND INVEST EXTENDED BY 1 YEAR

* FOREIGN DIVIDEND TAX RATE CUT TO 15% FOR INDIAN COS .

DEFICIT

* FY11 REVENUE DEFICIT SEEN AT 2.3% OF GDP, FY12 AT 1.8%

* AIM FISCAL DEFICIT OF 3% OF STATE GDP BY FY14

* FISCAL DEFICIT TARGET 4.1% OF GDP IN FY13, 3.5% FY14

* PEGS FY12 FISCAL DEFICIT AT 4.6% OF GDP

* FY11 FISCAL DEFICIT REVISED TO 5.1% OF GDP

* CURRENT ACCT DEFICIT AROUND FY09 LEVELS IS A CONCERN

* CURRENT ACCT GAP A CONCERN DUE TO COMPOSITION OF FX FLOW

* COUNTER-CYCLICAL FISCAL STEPS BEST BET VS EXTERNAL SHOCKS .

TAX REFORMS

* DIRECT TAXES CODE TO BE EFFECTIVE APR 1, 2012

* ROLLOUT OF DIRECT TAX CODE TO BE EFFECTIVE APR 1, 2012

* TAKING STEPS TO SIMPLIFY TAX, TARIFF PROCEDURES

* ROLLOUT OF DIRECT TAX CODE, GST TO MARK A WATERSHED

* WILL INTRODUCE GST BILL IN CURRENT SESSION

* PREPARATIONS FOR GST ROLLOUT IN FINAL STAGES

* GST ROLLOUT TO BE KEY FACTOR IN ECON DEVELOPMENT

* NSDL CHOSEN TECH PARTNER FOR GST IMPLEMENTATION

* GST DIALOGUE WITH STATES HAS MADE CONSIDERABLE PROGRESS

* SCHEME PROPOSED FOR QUICKER REFUND OF SERVICE TAX

* TO INTRODUCE SELF-ASSESSMENT IN CUSTOMS FOR FAST CLEARANCE

* PSUS TO ISSUE TAX-FREE BONDS WORTH 300 BLN RUPEE FY12

* PROPOSALS OF NATL RESOURCES PRICING PANEL LIKELY IN 3 MOS

* TO GIVE RAIL 100 BLN RUPEE FOR TAX-FREE INFRA BONDS FY12

* TO GIVE IRFC 100 BLN RUPEE FOR TAX-FREE INFRA BONDS FY12

* TO GIVE NHAI 100 BLN RUPEE FOR TAX-FREE INFRA BONDS FY12

* TO ALLOW 300 BLN RUPEES FOR TAX-FREE INFRA BONDS FY12

INFRASTRUCTURE

* INFRA SECTOR FII CAP FOR BONDS WITH 5 YR RESIDUAL MATURITY

* FII LIMIT IN INFRA SECTOR RAISED TO $25 BLN

* FERTILISER SECTOR INVESTMENT TO BE GIVEN INFRA STATUS

* 50 BLN RUPEES FOR TAKEOUT FINANCING SCHEME

* TAKEOUT FINANCING PLAN IMPLEMENTED IN 7 INFRA PROJECTS

* TO GIVE COMPREHENSIVE PVT-PUBLIC PARTNER POLICY FOR INFRA

* IIFCL FY12 DISBURSEMENT AIM 250 BLN RUPEE VS 200 BLN FY11

* PPP MODEL FOR CREATING PUBLIC INFRASTRUCTURE SUCCESSFUL

* ALLOCATION OF 2.14 TRLN RUPEES FOR INFRA SECTOR FY12

* FARM SECTOR COS TO GET INVEST DEDUCTION FOR CAPEX

* INVEST-LINKED DEDUCTIONS FOR FERTILISER COS .

SUBSIDY

* TO MOVE TO DIRECT TRANSFER OF FERT SUBSIDY IN PHASED WAY

* TO MOVE TO DIRECT TRANSFER OF CASH SUBSIDY ON KEROSENE

* TO MOVE TO DIRECT TRANSFER OF OIL SUBSIDY IN PHASED MANNER

* AIM DIRECT CASH SUBSIDY FOR FERT, KEROSENE BY MAR 2012

* THERE IS LARGE SCALE DIVERSION OF SUBSIDISED KEROSENE OIL

* DIRECT TRANSFER OF CASH SUBSIDY FOR POOR .

DIVESTMENT

* GOVT TO RAISE 400 BLN RUPEES FROM DIVESTMENT IN FY12

* INTEND TO MAINTAIN DIVEST MOMENTUM IN FY12

* BROADBASING OF CENTRAL PSU OWNERSHIP HIGHLY SUCCESSFUL

* RESCHEDULED SOME DIVEST PLANS THIS FY.

FARM & FOOD

* NATIONAL FOOD SECURITY BILL TO BE TABLED THIS YEAR

* FARM CREDIT FLOW TARGET 4.75 TRLN RUPEES FY12

* PROPOSE TO PROMOTE ORGANIC FARMING METHODS

* HAVE TO SUSTAIN FARM PRODUCTIVITY IN LONG TERM

* TO GIVE 3 BLN RUPEE TO UP OUTPUT OF NUTRI-CEREALS

* 3 BLN RUPEES FOR ANIMAL-BASED PROTEIN PRODUCTION

* 3 BLN RUPEE TO BRING 60,000 HA UNDER PALM OIL PLANTATION

* TO LAUNCH NATL PROTEIN MISSION WITH 3 BLN RUPEE CORPUS

* 3 BLN RUPEES FOR HIGHER PRODUCTION OF MILLETS

* TO PROVIDE 3 BLN RUPEES TO RAISE VEGETABLE PRODUCTION

* 4 BLN RUPEES TO EASTERN STATES FOR GREEN REVOLUTION

* SEE 16.5 MLN TN PULSES OUTPUT THIS YEAR

* TO GIVE 3 BLN RUPEES TO PROMOTE PULSES PRODUCTION, MKTING

* TO GIVE 3 BLN RUPEE TO 6,000 VILLAGES FOR PULSES FARMING

* TO SET UP 5 BLN RUPEE WOMEN SELF HELP DEVELOPMENT FUND

* FARM DEVELOPMENT PLAN ALLOCATION HIKED TO 78.6 BLN RUPEE

* REMOVING BOTTLENECKS IN FRUITS, VEGETABLES, POULTRY SUPPLY

* MULLING NUTRIENT-BASED SUBSIDY POLICY FOR UREA

* FARM GOODS STORAGE CAPACITY NEEDS AUGMENTATION

* APPROVAL TO SET UP 15 MORE MEGA FOOD PARKS IN FY12

* TO CREATE 4 MLN TN MORE FOOD GRAIN STORAGE BY MAR 2012

* FOOD INFLATION EXPOSES FLAW IN SUPPLY-CHAIN MANAGEMENT

* STATES NEED TO REVIEW, REVAMP FARM PRODUCE MARKETING ACTS

* COLD STORAGE INVESTMENT TO GET VIABILITY GAP FUNDING .

RURAL, SOCIAL SECTOR

* TO SET UP MORTGAGE RISK GUARANTEE FUND FOR RURAL HOUSING

* 5 BLN RUPEES CAPITAL INFUSION FOR REGIONAL RURAL BKS FY12

* 100 BLN RUPEE TO NABARD FOR SHORT-TERM RURAL CREDIT FUND

* TO INFUSE 30 BLN RUPEES IN NABARD IN PHASED MANNER

* 3% INTEREST SUBVENTION TO FARMERS REPAYING LOANS ON TIME

* INTEREST RATE SUBVENTION FOR FARM LOANS EXTENDED TO FY12

* RURAL HOUSING FUND CORPUS HIKED TO 30 BLN RUPEES VS 20 BLN

* NABARD TO GET 30 BLN RUPEES TO HELP HANDLOOM WEAVERS FY12

* OVER 2,000 POPULATION VILLAGES TO HAVE BANKS

* SIGNIFICANTLY SCALED UP FLOW OF RESOURCES IN RURAL AREAS

* RURAL INFRA DEVELOPMENT FUND RAISED TO 180 BLN RUPEE FY12

* RURAL BROADBAND CONNECTIVITY TO ALL VILLAGES IN 3 YEARS

* 2.2 MLN ANGANWADI WORKERS TO BENEFIT FROM PAY HIKE

* ANGANWADI WORKERS WAGES DOUBLED TO 3,000 RUPEE/MO

* ANGANWADI HELPERS WAGE DOUBLED TO 1,500 RUPEES/MO

* BANKS TO COVER 20,000 VILLAGES FOR OPENING ACCTS FY11

* RIDF CORPUS INCREASED TO CREATE WAREHOUSING CAPACITY

* RIDF CORPUS 180 BLN RUPEES FY12 VS 160 BLN FY11

* CUT BPL PENSION SCHEME QUALIFY AGE TO 60 YRS FROM 65 YRS

* PENSION FOR OVER 80-YR-OLDS HIKED TO 500 RUPEES/MO

* TO GIVE 1 MLN UNIQUE IDS/DAY FROM OCT

* TO SET UP SELF HELP DEVELOPMENT GROUP FUND OF 5 BLN RUPEE

* MINORITIES' LOAN TARGET UP AT 15% OF PRIORITY LOAN FOR BKS

* MULLING FRAMEWORK TO PROTECT INTEREST OF SMALL BORROWERS

* OLD AGE PENSION PLAN ELIGIBILITY AGE CUT TO 60 YR VS 65 YR

* NREGA WAGE RATE TO BE INDEXED TO CONSUMER PRICE INDEX

* UNORGANISED WORKERS TO BENEFIT FROM HEALTH INSURANCE PLAN

* SCHOLARSHIP SCHEME TO BENEFIT 4 MLN SC, ST STUDENTS

* SCHOLARSHIP PLAN FOR SC/ST STUDENTS IN CLASS IX, X

* GOVT CONTRIBUTION IN OLD AGE PENSION RAISED TO 5 YR FROM 3

* TO ENUMERATE CASTE IN SEPARATE CENSUS BEGINNING JUNE

MISCELLANEOUS

* TO INTRODUCE PUBLIC DEBT MANAGEMENT BILL IN FY11

* TO BRING BILL TO ENABLE RBI TO GRANT MORE BANKING LICENSES

* NEW COMPANIES BILL TO BE INTRODUCED IN CURRENT SESSION

* 1% INTEREST SUBVENTION ON HOME LOAN UP TO 1.5 MLN RUPEE

* UPPED PRIORITY HOME LOAN LIMIT TO 2.5 MLN RUPEE VS 2 MLN

* SEE FY11 BUDGET TRANSITION FOR MORE TRANSPARENT INDIA

* TO SET UP INDIA MICROFIN EQUITY FUND OF 1 BLN RUPEES

* TO SET UP 7 NEW MEGA PROJECTS FOR LEATHER FY12

* IMPLEMENTING 5-POINT PLAN TO TACKLE BLACK MONEY MENACE

* FINANCE MINISTRY BEGAN STUDY OF UNACCOUNTED INCOME

* ENFORCEMENT DIRECTORATE STRENGTH INCREASED THREE-FOLD

* ALIGARH MUSLIM UNIV MURSHIDABAD UNIT TO GET 500 MLN RUPEE

* ALIGARH MUSLIM UNIV KERALA CENTRE TO GET 500 MLN RUPEES

* 2 BLN RUPEE ONE TIME GRANT TO IIT KHARAGPUR FY12

* ALLOCATED 100 MLN RUPEES TO DELHI SCHOOL OF ECONOMICS

* NATL KNOWLEDGE NETWORK TO LINK 1,500 INSTITUTES BY MAR '12

* SOME CHALLENGES NEED URGENT ATTENTION IN SHORT TERM

* CORRUPTION IS A PROBLEM WE HAVE TO FIGHT COLLECTIVELY

* HOPE STATES WILL REFORM THEIR FRBM POLICY

* NEED TO SEIZE OPPORTUNITY TO BOOST REGULATORY STANDARDS

* REACHING THE END OF A REMARKABLE FISCAL YEAR

* TO MOVE INSURANCE, PENSION, BANKING BILLS IN PARLIAMENT

* 50 BLN RUPEES TO SIDBI FOR REFINANCING SMALL FIRMS FY12

* NEED TO REVISIT EXACT DEFINITION FOR FINCL BUDGET CONCEPTS

* CENTRAL ELECTRONIC REGISTRY TO PREVENT LOAN SCAMS

* NEW SERIES OF COINS WITH INDIAN RUPEE SYMBOL SOON

* TO AMEND THE INDIAN STAMP ACT

TODAY MARKETS WOULD OPEN POSITIVE TRACKING POSITIVE CLOSE IN AMERICAN MARKETS. IF NIFTY TRADES ABOVE 5350 THEN LIKELY TO MAKE AN UPMOVE TO 5392 AND THEN TO 5425 AND ANY BREAK AND CLOSE ABOVE 5425 WOULD TAKE NIFTY TO 5460 LEVELS AND THEN TO 5500 LEVELS IN A VERY SHORT SPAN. IF NIFTY TRADES BELOW 5300 THEN LIKELY TO MAKE ITS DOWNWARD JOURNEY 5275 AND THEN TO 5240. IF NIFTY DOESN’T HOLD 5240 LEVEL AND TRADES BELOW THEN, NIFTY WOULD COME DOWN TO 5200 LEVELS WHERE IT MAY TAKE GOOD SUPPORT BUT IF NIFTY HAPPENS TO CLOSE BELOW 5200 LEVELS WE CAN BE REST ASSURED THAT NIFTY WOULD COME DOWN MUCH MUCH LOWER THAN ANTICIPATED.