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