INTRADAY TIPS FOR 12 MAY 2011

GOOD MORNING!!!

MARKETS GOT OFF TO A QUIET START SHRUGGING LEADS FROM THE ASIAN EQUITY INDICES WHICH MOSTLY TRADED ON A POSITIVE NOTE AS INVESTORS IN THE REGION LARGELY REMAINED INFLUENCED BY THE WALL STREET WHICH EXTENDED UPTREND FOR THIRD STRAIGHT SESSION ON THE BACK OF GOOD EARNINGS ANNOUNCEMENTS AND SOME BIG CORPORATE DEALS. AFTER HITTING INTRADAY LOWS IN THE EARLY HOURS, THE FRONTLINE INDICES PARED ALL THE LOSSES AND MOVED INTO THE GREEN ZONE ON THE BACK OF BUYING IN REAL ESTATE, AUTOMOBILE AND METAL STOCKS. HOWEVER, THE SESSION LARGELY REMAINED CHARACTERIZED BY CHOPPINESS AS INVESTORS SEEMED RELUCTANT TO PILE UP HEFTY POSITIONS AHEAD OF IIP AND WPI DATA ALONG WITH THE OUTCOME OF ASSEMBLY POLLS DUE THIS WEEK AND INDULGED ONLY IN STOCK CENTRIC ACTIVITIES THROUGH THE SESSION.

TODAY MARKETS WOULD OPEN NEGATIVE AND CONTINUE TO REMAIN UNDERPRESSURE, IF NIFTY TRADES BELOW 5540 THEN LIKELY TO BE UNDER PRESSURE AND WOULD TAKE A MINOR SUPPORT AROUND 5520 LEVELS BREACH BELOW THIS WOULD TAKE NIFTY DOWN TO CRUCIAL SUPPORT OF 5500 POST WHICH, IT WOULD BLEED DOWN TO 5450 LEVELS ANY CLOSE BELOW 5500 LEVELS WE MAY HEAD DOWN MUCH FURTHER AND ONE IS ADVISED NOT TO TAKE ANY FRESH POSITIONS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5576 ONE CAN SEE SOME AMOUNT OF PULL BACK RALLY TO 5592 LEVELS AND ONLY ABOVE 5600 ONE CAN INITIATE A FRESH BUY. ONE HAS TO BE VERY CAREFUL AHEAD OF INFLATION FIGURES ALONG WITH IIP DATA TO COME IN THE LATE AFTERNOON AND RESULTS OF POLLS WHICH ARE TO BE DECLARED TOMORROW WOULD DEFINE THE DIRECTION OF THE MARKETS. SO ONE IS ADVISED TO STAY CAUTIOUS.

INTRADAY TIPS FOR 11 MAY 2011

GOOD MORNING!!!

KEY INDICES GOT OFF TO A QUIET START TRACKING POSITIVE VIBES FROM THE ASIAN EQUITY INDICES WHICH MOSTLY TRADED ON A POSITIVE NOTE INFLUENCED BY THE OVERNIGHT GAINS IN WALL STREET WHICH EXTENDED THEIR LAST WEEK GAINS ON SUPPORT OF REBOUND IN THE COMMODITY PRICES. INVESTORS STARTED TO CASH IN ON POSITIONS FROM THE HIGHER LEVELS, LACKING CONVICTION THAT THE MARKETS MAY BE ABLE TO SUSTAIN THE INITIAL OPTIMISM AND SELLING GATHERED PACE IN THE MID NOON SESSION AS INVESTORS SQUARED OFF POSITIONS FROM THE BANKING AND CONSUMER DURABLES COUNTERS. EVENTUALLY THE BOURSES SNAPPED YET ANOTHER SESSION ON A FLAT NOTE WITH MARGINAL CUTS. BREADTH OF THE MARKETS REMAINED NEGATIVE. MARKETMEN AT LARGE REMAINED PRECAUTIOUS AHEAD OF IIP AND WPI DATA ALONG WITH THE OUTCOME OF ASSEMBLY POLLS DUE THIS WEEK AND INDULGED ONLY IN STOCK CENTRIC ACTIVITIES THROUGH THE SESSION. THE UNDERTONE CONTINUED TO REMAIN CAUTIOUS AMID MACROECONOMIC HEADWINDS LIKE INFLATIONARY PRESSURE AND RISING BORROWING COSTS PUMMELING INTEREST RATE SENSITIVE BANKING SECTOR STOCKS. MIXED CORPORATE EARNINGS ANNOUNCEMENT BY HEAVYWEIGHTS AND PLOUGH BACK OF FII FUNDS FROM THE DOMESTIC MARKETS TOO DID NOT GO DOWN WELL WITH LOCAL INVESTORS.

TODAY MARKETS WOULD OPEN FLAT AND RANGE BOUND AND CONTINUE TO REMAIN UNDER PRESSURE ON EVERY UPSIDE, IF NIFTY TRADES ABOVE 5573 THEN LIKELY TO MAKE AN UPMOVE TO 5591 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT FURTHER UPSIDE TO 5626 LEVELS AND ANY CLOSE ABOVE 5600 IS CONSIDERED TO BE A POSITIVE SIGN IN THE NEAR TERM IN NIFTY. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5540 THEN LIKELY TO MAKE ITS DOWNSIDE MOVE TO 5519 AND THEN TO 5500 AND ANY BREAK BELOW 5500 WOULD NOT ONLY WEAKEN BUT ONE CAN INITIATE FRESH SHORTS IN THIS REGION LIKELY TO COME DOWN TO 5462 LEVELS. ONE CAN STAY SHORT IN NIFTY IF IT TRADES BELOW 5500 LEVELS.

POSITIONAL TRADES
BUY BATA TGT 600

INTRADAY TIPS FOR 10 MAY 2011

GOOD MORNING!!!

AFTER A SMART BOUNCE BACK IN THE LAST SESSION IT WAS TOTALLY A SESSION OF CONSOLIDATION AS WE HAVE SEEN INVESTORS WERE VERY RELUCTANT TO BUILD ANY POSITIONS AHEAD OF IIP DATA AND THE OUTCOME OF ASSEMBLY POLLS SCHEDULED TO BE ANNOUNCED LATER THIS WEEK. TODAY THE TRADING SESSION WAS COMPLETELY DOMINATED BY VOLATILITY AS TRADERS UTILIZED EVERY SMALL RISE TO CAPITALIZE. WE HAVE SEEN LACK OF CONVICTION BY FII’S AS THEY ARE STILL ON A NEGATIVE TRACK WHICH IS HURTING THE SENTIMENT OF THE INVESTORS ON THE LONG RUN, THEY ARE RELENTLESSLY PLOUGHING BACK THEIR FUNDS FROM THE MARKETS ON EXPECTATIONS THAT MACROECONOMIC HEADWINDS WILL EAT IN TO THEIR RETURNS IN THE TIME TO COME AND FORCE THE STOCK MARKETS TO UNDERPERFORM. INITIALLY MARKETS GOT OFF TO AN OPTIMISTIC START ON THE BACK OF SUPPORTIVE CUES FROM SOME OF THE ASIAN MARKETS WHICH INFLUENCED BY THE OPTIMISTIC CLOSE OF WALL STREET ON THE BACK OF BETTER THAN ANTICIPATED US PAYROLLS DATA ON THE LAST TRADING DAY. BUYING GATHERED SOME PACE IN THE INITIAL HOURS OF SECOND HALF AS INVESTORS COVERED THEIR SHORT POSITIONS HOWEVER, PROFIT BOOKING AT HIGHER LEVELS EVENTUALLY LED THE BOURSES TO SNAP THE SESSION AROUND PREVIOUS CLOSING LEVELS. BREADTH OF THE MARKETS REMAINED NEGATIVE.

TODAY MARKETS WOULD OPEN FLAT AND REMAIN RANGE BOUND. IF NIFTY TRADES ABOVE 5574 THEN LIKELY TO MAKE AN UPMOVE TO 5592 LEVELS AND ANY BREACH ABOVE THIS POINT WOULD TAKE NIFTY TO 5618 LEVELS AND THEN TO 5634 LEVELS, ANY CLOSE ABOVE 5600 WOULD BE CONSIDERED AS A GOOD BUY FOR THE NEXT SESSION. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5550 THEN LIKELY TO MAKE A SLIDE DOWN TO 5525 LEVELS AND BREACH BELOW THIS WOULD TAKE NIFTY TO 5503 AND ANY TRADE BELOW 5500 WOULD TAKE NIFTY TO MUCH LOWER LEVELS, IF TRADED BELOW 5500 THEN LIKELY TO SEE IMMEDIATELY AT 5470 LEVELS IF NIFTY CLOSES BELOW 5500 WE CAN SEE SOME MORE SLIDE IN THE DAYS AHEAD. ONE SHOULD BE CAREFUL BELOW 5500 AND ABOVE 5600 THIS 100 POINT BAND IS CRUCIAL FOR THE NIFTY IN THE DAYS AHEAD.

BUY HINDUSTAN UNILEVER SL 283 TGT 290/294/297
BUY BATA(I) SL 450 TGT 463/471/476
BUY SUMEET INDS SL 40 TGT 42.50/44/46

POSITIONAL TRADES
BUY MAN INDS TGT 125*
BUY COAL INDIA TGT 450*
BUY FEDERAL BANK SL 395 TGT 458/500*

INTRADAY TIPS FOR 09 MAY 2011

GOOD MORNING!!!

INDIAN MARKETS EMERGED EXULTANT AFTER ULTIMATELY BREAKING THE NINE BACK TO BACK SESSION DECLINING STREAK, THE LONGEST IN A DECADE, AND RETURNED BACK TO THE PATH OF RESURGENCE. THE FRONTLINE INDICES WITNESSED A RELIEF RALLY AS BEARS RAMPAGE WAS FINALLY BROUGHT TO A STANDSTILL AND BULLS SHOWCASED THEIR ENTHUSIASM ON A DAY WHEN STOCK MARKETS ACROSS THE GLOBE EXHIBITED BEARISH TREND. ESPECIALLY CRUDE OIL, STIMULATE GREAT DEAL OF ZEAL AMONG LOCAL INVESTORS, WHO LATELY KEPT TAKING MONEY OFF THE TABLE SESSION AFTER SESSION ON FEARS OF SPIRALING INFLATIONARY PRESSURE. THE FOUR SESSION DOWNTREND IN INTERNATIONAL CRUDE OIL PRICES, AFTER HITTING A 31-MONTH HIGH LEVEL LAST WEEK, GAVE A FILLIP TO STOCKS IN THE OIL AND GAS AND AIRLINE SECTORS WHICH ARE LARGELY LOOK ON INTERNATIONAL CRUDE PRICES. INITIALLY INDICES GOT OFF TO AN OPTIMISTIC START DESPITE THE SOMBER LEADS FROM MARKETS ACROSS THE GLOBE AS ASIAN MARKETS PROLONGED THEIR GLOOMY RUN ON BEING INFLUENCED BY THE OVERNIGHT WALL STREET WHICH EXTENDED ITS FALL ON THE BACK OF DECLINE IN THE COMMODITIES AND AN UNEXPECTED INCREASE IN THE UNEMPLOYMENT BENEFIT CLAIMS. THE MARKETS TRIED TO CAPITALIZE ON THE INITIAL MOMENTUM IN THE MORNING SESSION OF TRADE HOWEVER, IN THE EARLY AFTERNOON SESSION INDICES WENT ON TO TOUCH INTRADAY LOW LEVELS. BUT A STRONG SHORT COVERING RALLY FROM THE LOW POINT OF THE DAY ON THE BACK OF BOTTOM FISHING IN BADLY BUTCHERED RATE SENSITIVE COUNTERS HELPED THE INDICES TO EVENTUALLY SETTLE WITH GAINS. BREADTH OF THE MARKETS REMAINED POSITIVE AT THE CLOSE OF THE TRADE.

TODAY MARKETS WOULD OPEN FLAT TO POSITIVE AND CONTINUE TO BE UNDER PRESSURE AT EVERY HIGHER LEVELS, IF NIFTY TRADES ABOVE 5568 THEN LIKELY TO MOVE UP TO 5589 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5628 LEVELS AND ANY BREAK ABOVE THIS WOULD TAKE NIFTY TO 5654 LEVELS. ANY CLOSE ABOVE 5600 IS A GOOD SIGN FOR THE MARKETS AND WOULD MOVE FURTHER UPSIDE IN THE WEEK AHEAD. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5546 THEN LIKELY TO COME DOWN TO 5524 AND THEN TO 5481 AND ANY BREAK BELOW THIS POINT WOULD TAKE NIFTY 5450 LEVELS ANY CLOSE BELOW 5500 WOULD BE VERY WEAK IN THE WEEK AHEAD. STAY EXTREMELY CAUTIOUS ON THE UPSIDE AS NIFTY IS STILL WEAK ON THE POSITIONAL BASIS ONE HAS TO WAIT AND WATCH TILL NIFTY BREAKS 5600 LEVELS, ONE IS ADVISED NOT TO HOLD LONG POSITIONS OVERNIGHT IF NIFTY DOESN’T CLOSE ABOVE 5600 LEVELS.

BUY VIKASH METAL & POWER SL 18.90 TGT 19.80/20.65/21.40

INTRADAY TIPS FOR 06 MAY 2011

GOOD MORNING!!!

INDICES EXTENDED THE SORROW OF CLOSING IN THE RED TERRAIN FOR THE NINTH STRAIGHT SESSION. MARKETS GOT OFF TO A FLAT OPENING TRACKING THE GRAVE ASIAN MARKETS WHICH PROLONGED THEIR GLOOMY RUN AS SENTIMENTS LARGELY REMAINED INFLUENCED BY THE OVERNIGHT WALL STREET WHICH DECLINED ON CONCERNS OF JOBS MARKET AND SOME WEAK EARNINGS AND ECONOMIC REPORTS. THE INDICES SHOWED SOME SIGNS OF RECOVERY INITIAL IN THE MORNING SESSION BUT COULD NOT HOLD ANY LONGER AS THE PROFIT BOOKING AT HIGHER LEVELS TOOK ITS TOLL ON THE INDICES. PANIC SELLING IN THE INITIAL HOURS OF SECOND HALF PROVED COSTLY FOR THE BOURSES WHICH COULD NOT RECOUP THE LOSSES IN THE REST OF THE SESSION. THOUGH SOME SHORT COVERING WAS WITNESSED IN THE DYING HOURS OF TRADE, HOWEVER, THE RISE WAS UTILIZED BY BEARS TO TAKE PROFITS OFF THE TABLE AND BATTER THE BENCHMARKS TO THE SESSION’S LOWEST POINT BY THE END OF TRADE.

TODAY MARKETS WOULD REMAIN NEGATIVE AND CONTINUE TO BE UNDER PRESSURE, IF NIFTY TRADES BELOW 5448 THEN LIKELY TO COME DOWN TO 5419 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY DOWN TO 5387 LEVELS AND FURTHER TO 5365 LEVELS. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5470 THEN WOULD MOVE UP TO 5500 LEVELS AND ANY BREAK ABOVE THIS LEVELS WOULD TAKE IT TO 5530 LEVELS AND ABOVE THAT 5574, ANY CLOSING ABOVE 5574 LEVELS IT WOULD CHANGE THE TREND IN THE MARKETS FROM NEGATIVE ZONE TO THE POSITIVE TERRITORY. ANY CLOSE BELOW 5365 WOULD TAKE NIFTY TO MUCH LOWER LEVELS.

INTRADAY TIPS FOR 05 MAY 2011

GOOD MORNING!!!

MARKETS AS THEY CONTINUED THEIR DECLINE FOR THE EIGHTH STRAIGHT SESSION, THE ONLY RESPITE CAME WITH THE DECLINE BECOMING LESS SEVERE FOR THE DAY. IT WAS A RANGE-BOUND DAY OF TRADE AND SLIGHTLY VOLATILE TOO. MARKETS OPENED ON A NEGATIVE NOTE TRACKING THE FEEBLE GLOBAL CUES FROM THE REGIONAL MARKETS. MARKETS TOOK STRONG SUPPORT AROUND THE CRUCIAL SUPPORT LEVELS IN NIFTY, THE TRADE REMAINED RANGE BOUND AND SLUGGISH LACKING POSITIVE TRIGGERS, BUT IN THE LATE AFTERNOON WE HAVE SEEN SOME SUDDEN BOUNCE BACK IN THE MARKETS WITH SHORT COVERING WHICH TOOK INDICES INTO GREEN FOR A BRIEF PERIOD BUT COULDN’T WITHSTAND MUCH AS THE INVESTORS LACKED CONFIDENCE IN THE MARKETS AS THEY TOOK OFF THE PROFITS FROM THE TABLE AT HIGHER LEVELS LEADING TO AGAIN A DOWNFALL, SOME HEAVY WEIGHTS TOO LOST THEIR MOMENTUM IN THE FINAL HOURS, UNABLE TO GIVE ANY SUPPORT TO THE MARKETS WHICH GOT DRAGGED LOWER.

TODAY MARKETS WOULD OPEN NEGATIVE AND REMAIN IN A NARROW RANGE BOUND. IF NIFTY TRADES BELOW 5517 THEN LIKELY TO MAKE ITS DOWNSIDE JOURNEY TO 5477 AND ANY BREACH OF THIS LEVEL WOULD TAKE NIFTY TO 5450 LEVELS AND THEN TO 5416 LEVELS. WE ARE STILL ON THE NEGATIVE TERRAIN AND CONTINUE TO BE UNDER PRESSURE TILL SOME BUYING INTEREST IS SEEN FROM FOREIGN INSTITUTIONAL INVESTORS AS THEY ARE CONTINUOUSLY ON THE SELLING SPREE. ON THE POSITIVE SIDE AS THE BREADTH ON THE POSITIONAL AND SHORT TERM IS NEGATIVE, POSITIVE BREADTH ON THE INTRADAY BASIS IS CONSIDERED ONLY IF NIFTY TRADES ABOVE 5565 LEVELS WE CAN SEE NIFTY TO MOVE UP TO 5582 LEVELS AND THEN TO 5618 LEVELS. AVOID HOLDING LONG POSITIONS.

INTRADAY TIPS FOR 04 MAY 2011

GOOD MORNING!!!

MARKETS GOT TREMORS AND SHOCKWAVES ACROSS THE BOURSES AFTER THE RBI’S POLICY WAS ANNOUNCED, THE POLICY MADE DALAL STREET SIMPLY BLEED. WHICH HAS NOT ONLY TRIGGERED LOT OF SHORT POSITIONS IN THE MARKETS BUT ALSO HAS PROVOKED MARKET PARTICIPANTS TO RUTHLESSLY SQUARE OFF THEIR POSITIONS ESPECIALLY FROM RATE SENSITIVE COUNTERS. THIS IS STRAIGHT SEVENTH TRADING SESSION WHERE WE HAVE SEEN MARKETS TRAVELLING SOUTH WARDS IN EVERY PHASE OF TRADING SESSION IT SEEMED LIKE THERE IS NO END TO THE DECLINE IN THE MARKETS, THE RBI’S 50 BPS HIKE IN REPO AND REVERSE REPO RATES MARKED ITS NINTH ATTEMPT TO EASE THE SPIRALING INFLATIONARY PRESSURE ON THE ECONOMY. THE RBI POLICY HIGHLIGHTED ITS WORRIES OVER THE CURRENT LEVELS OF INFLATION WHICH IT FORECAST WILL REMAIN ELEVATED THRU THE FY 2012 AND PEGGED IT AT AROUND 6% WITH AN UPWARD BIAS. THE BANK RATE AND CRR RATES WERE LEFT UNCHANGED BY RBI, HOWEVER IT UNEXPECTEDLY HIKED SAVINGS BANK RATE TO 4% FROM 3.5%, WHICH PROMPTED INVESTORS TO TRIM DOWN THEIR POSITIONS FROM BANKING STOCKS AS THEY FEARED THAT INCREASE IN INTEREST RATES WILL PUT PRESSURE ON THE NET INTEREST MARGINS OF BANKS. MOREOVER, THE CENTRAL BANK HAS FORECAST INDIA’S ECONOMIC GROWTH TO BE IN THE RANGE OF 7.4% TO 8.5% SIGNIFICANTLY LOWER THAN THE FORECAST OF 9% BY PM'S ECONOMIC ADVISORY COUNCIL, WHICH SPOOKED THE INTERESTS OF FOREIGN INVESTORS TOO. THE FII’S CONTINUED TO PLOUGH BACK THEIR FUNDS FROM DOMESTIC MARKETS ON EXPECTATIONS THAT MACROECONOMIC HEADWINDS WILL EAT IN TO THEIR RETURNS IN THE TIME TO COME AND FORCE THE STOCK MARKETS TO UNDERPERFORM. INITIALLY MARKETS GOT OFF TO A PESSIMISTIC OPENING AS LOCAL INVESTORS REMAINED EXTREMELY CAUTIOUS AHEAD OF RBI’S ANNUAL MONETARY POLICY MEET WHILE LEADS FROM THE ASIAN AND OVERNIGHT US MARKETS TOO REMAINED UNSUPPORTIVE. THE FRONTLINE INDICES GYRATED IN AN EXTREMELY NARROW RANGE FOR THE FIRST COUPLE OF HOURS HOWEVER THE BOURSES WITNESSED AN INESCAPABLE FREEFALL THEREAFTER AS THE RATE SENSITIVE COUNTERS LIKE BANKING, AUTOMOBILE AND REAL ESTATE BRUTALLY DRAGGED THE FRONTLINE INDICES. IN A THE ABSENCE OF ANY SHORT COVERING RALLY, THE SOUTHBOUND JOURNEY CONCLUDED ONLY WITH THE CLOSE OF TRADING SESSION AROUND THE LOW POINT OF THE DAY AFTER TAKING A NASTY BLOW. MARKETS PLUMMETED ON EXTREMELY LARGE VOLUMES BREADTH OF THE MARKET REMAINED ABYSMAL

TODAY MARKETS WOULD OPEN NEGATIVE AND TRADE IN A RANGE BOUND. IF NIFTY TRADES BELOW 5560 THEN WOULD COME DOWN TO 5513 LEVELS AND BREACH BELOW THIS POINT WOULD TEST 5466 AND ANY BREAK IN BELOW THIS POINT WOULD WILL FIND SUPPORT ONLY AT 5375 LEVELS. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5585 THEN LIKELY TO MOVE UP TO 5621 LEVELS AND ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5657 LEVELS. IF NIFTY RECOVERS ONE HAS TO BEAR IN MIND THAT THE LOWEST POINT OF THE DAY HAS BE BROKEN IN ORDER TO INITIATE FRESH SHORTS, THIS WOULD BE VERY CRUCIAL. THE BIGGEST CHALLENGE IN MARKETS IS, FII’S ARE NOW AT SELLING SPREE TILL THE TIME THEY COME FORWARD TO SHOW SOME INTEREST ONE IS ADVISED NOT TO HOLD TOO MANY OPEN POSITIONS ON THE POSITIVE SIDE.

INTRADAY TIPS FOR 03 MAY 2011

GOOD MORNING!!!

IT TURNED TO BE YET ANOTHER TUMULTUOUS DAY OF TRADE FOR THE INDIAN STOCK MARKETS WHICH GOT THRASHED FOR THE SIXTH STRAIGHT SESSION TO END. INDICES GOT OFF TO AN OPTIMISTIC OPENING AS LEADS FROM THE ASIAN MARKETS REMAINED SUPPORTIVE SINCE INVESTORS SHOWED RENEWED FERVOR AFTER REPORTS THAT AL QAEDA’S ELUSIVE LEADER OSAMA BIN LADEN IS DEAD AND HIS BODY WAS RECOVERED BY US AUTHORITIES. BUT THE FRONTLINE INDICES FAILED TO KEEP THEIR HEAD ABOVE THE WATER AND SLIPPED IN THE NEGATIVE TERRAIN IN JUST MATTER OF SECONDS AND CONTINUED TO BLEED THEREAFTER. THE BOURSES SHOWED SOME SIGNS OF RECOVERY IN THE LATE MORNING SESSION AMID A SLEW OF ECONOMIC LEADS BUT FAILED TO GAIN ANY KIND OF MOMENTUM AND DIVED YET AGAIN AND THIS TIME DEEPER INTO THE RED TERRITORY. VOLUMES WERE NOT OF GREAT CONCERN BUT THE MARKET BREADTH WAS WEAK.

TODAY MARKETS WOULD OPEN NEGATIVE AND CONTINUE TO BE UNDER PRESSURE UNTIL NIFTY CROSSES 5762 IS BROKEN ON THE UPSIDE FOR INTRADAY TERMS. IF NIFTY TRADES BELOW 5704 THEN LIKELY TO COME DOWN TO 5668 LEVELS AND ANY FUTHER BREACH BELOW THIS POINT WOULD TAKE NIFTY DOWN TO 5618 ANY CLOSE BELOW THIS LEVEL WOULD DIRCTLY TAKE SUPPORT AT 5578 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5762 THEN LIKELY TO MOVE UPTO 5787 AND THEN TO 5805 LEVELS AND ANY CLOSE ABOVE 5805 LEVELS WOULD ELEVATE NIFTY TO FURTHER UPSIDE. SINCE THERE IS RBI POLICY REVIEW TODAY THERE MAY BE VERY HIGH VOLATILITY OF TRADES TO TAKE PLACE SO AVOID TAKING HEAVY POSITIONS AND STICK WITH LITTLE WIDER STOPLOSS AND CONTINUE TO HOLD THE POSITION AND ONCE THE STOPLOSS IS HIT TRY TO REVERSE THE TRADE AND CONTINUE TO HOLD IF NIFTY TRADES POSITIVE AT THE END OF THE DAY THEN LIKELY TO TAKE-OFF FROM THAT LEVELS.

INTRADAY TIPS FOR 02 MAY 2011

GOOD MORNING!!!

MARKETS ARE BEING SLAUGHTERED, SESSION AFTER SESSION DUE TO FEEBLE CORPORATE EARNINGS ANNOUNCEMENT AND FRAGILE MACROECONOMIC BACKDROP. THE FRONTLINE INDICES PASSED THROUGH AN EXTREMELY UNSTABLE DAY THOUGH THEY MANAGED FEW BRIEF STINTS INTO POSITIVE TERRITORY ONLY TO SUCCUMB TO UNRELENTING PROFIT BOOKING BY INVESTORS. THOUGH THE FRONTLINE INDICES TRIED HARD TO KEEP THEIR HEAD ABOVE THE WATER IN THE MORNING SESSION BUT SELLING EMERGED ON EVERY ATTEMPT TO MOVE ABOVE THE NEUTRAL LINE AS CONTINUOUS DISAPPOINTING RESULT ANNOUNCEMENTS BY MAJOR COMPANIES HIT SENTIMENTS. INDICES SNAPPED THE FIRST DAY OF A NEW F&O SERIES ON A DISAPPOINTING NOTE AS JITTERY INVESTORS SEEMED HELPLESS AMID AN INCREASINGLY VULNERABLE DOMESTIC SETUP. ON ONE HAND SPIRALING INTERNATIONAL CRUDE OIL PRICES HAVE BECOME THE HEADACHE OF POLICYMAKERS WHILE ON THE OTHER WORRIES OVER GLOBAL ECONOMIC RECOVERY LOOM LARGE GIVEN THE FACT THAT WORLD’S BIGGEST ECONOMY CONTINUES TO GROW AT A TEPID PACE. MARKET PARTICIPANTS ALSO RESORTED TO BROAD BASED POSITION SQUARING IN RATE SENSITIVE COUNTERS LIKE REALTY AND BANKEX AS THEY FELT THAT RBI WILL NOW BE FORCED TO ADOPT MORE AGGRESSIVE STANCE IN ITS ANNUAL MONETARY POLICY REVIEW MEET ON MAY 3RD.

TODAY MARKETS WOULD OPEN FLAT AND RANGE BOUND AND WOULD BE UNDER TREMENDOUS PRESSURE AT EVERY INCLINE. IF NIFTY TRADES BELOW 5733 THEN WOULD DROP DOWN TO 5700 LEVELS AND ANY BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5668 AND THEN TO 5618 LEVELS AND ANY BREACH BELOW 5600 LEVELS WOULD TAKE NIFTY TO 5555 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5776 THEN WOULD TAKE NIFTY TO 5830 LEVELS AND BREAK ABOVE THIS POINT WOULD FURTHER TAKE NIFTY TO 5887 LEVELS. BE CAUTIOUS WHEN NIFTY IS ON THE UPSIDE AS EVERY POSSIBILITY THAT NIFTY MAY SLIDE DOWN IN TRADE SINCE WE HAVE MONETARY POLICY REVIEW TOMORROW. BANKING AND REALITY WOULD BE UNDER TREMENDOUS PRESSURE AND WE MAY SEE STOCK SPECIFIC MOVES IN THE MARKETS.

BUY ASIAN PAINTS SL 2768 TGT 2800/2822/2858
BUY TITAN INDS SL 3986 TGT 4100/4200/4300/4400