GOOD MORNING!!!
INDICES HAVE STEADFASTLY MAINTAINED THE IMPETUS IN THE PAST FOUR TRADING SESSIONS AND MANAGED TO KICK-OFF THE INITIAL TRADING DAY OF 2011 ON AN OPTIMISTIC NOTE. MARKETS GOT OFF TO A STRONG START ON THE BACK OF OPTIMISTIC CUES FROM THE GLOBAL MARKETS. SENTIMENTS REMAINED UPBEAT IN THE EARLY TRADE BUT GRADUALLY DECLINED AS INVESTORS OPTED TO TAKE PROFITS OUT OF THE TABLE ON HIGH LEVELS. THE BOURSES GYRATED IN A NARROW RANGE WITH A POSITIVE BIAS AND TOUCHED THEIR INTRADAY HIGHS IN THE INITIAL MOMENTS OF TRADE. HOWEVER, SELL-OFF IN THE DYING HOURS OF TRADE LED THE INDICES TO CLOSE NEAR THE DAY’S LOW LEVEL. VOLUMES REMAINED WEAK FOR THE SECOND STRAIGHT DAY AT OVER RS 76 THOUSAND CRORE WHILE THE TURNOVER FOR NSE F&O SEGMENT REMAINED ON THE LOWER SIDE COMPARED TO FRIDAY AT OVER RS 62 THOUSAND CRORE. THE MARKET BREADTH WAS EXTREMELY POSITIVE; METAL COUNTER WAS THE TOP SECTORAL GAINER, WITH TATA STEEL AND STERLITE INDUSTRIES ZOOMING WELL OVER THREE PERCENT. WHILE SUGAR STOCKS TOO RALLIED TODAY AFTER DECLINING IN THE PREVIOUS TRADING SESSION ON REPORTS THAT THE GOVERNMENT WILL IMPOSE 60% IMPORT DUTY ON SUGAR FROM JANUARY 1, 2011. ON THE OTHER HAND, INFORMATION TECHNOLOGY COUNTER REMAINED UNDER MILD PRESSURE ON MONDAY BUT MANAGED TO REGAIN ALL THE LOSSES BY THE END OF THE DAY TO END TO CLOSE IN GREEN. METAL UP 2.07%, CONSUMER DURABLES (CD) UP 1.54%, PUBLIC SECTOR UNDERTAKINGS (PSU) UP 0.59%, BANKEX UP 0.56% AND POWER UP 0.54%. ON THE OTHER HAND, AUTO DOWN 0.17%, INFORMATION TECHNOLOGY (IT) DOWN 0.11% AND OIL & GAS DOWN 0.02% WERE THE ONLY LOSERS SECTORAL SPACE.
TODAY NIFTY WOULD OPEN POSITIVE AND WOULD BE UNDER PRESSURE ON EVERY HIGHER LEVELS. IF NIFTY TRADES ABOVE 6184 THEN LIKELY TO MAKE ITS UPMOVE TO 6200 AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 6220 AND THEN TO 6240, 6240 IS ONE OF THE MOST CRUCIAL LEVEL IN THE MARKETS BREAK ABOVE WHICH WOULD TAKE NIFTY TO MUCH HIGHER LEVELS THE ONLY POINT OF CONCERN IN THE MARKETS IS THE VOLUMES, THOUGH THE MARKETS ARE SCALING HIGHER DAY BY DAY FOR THE PAST FOUR DAYS IT IS VERY IMPERATIVE TO BEAR IN MIND THAT MARKETS CAN COME DOWN AT A GREATER PACE IF NORMAL VOLUME RESUMES THE EXCHANGES. ONE HAS TO BE VERY CAREFUL AND CALCULATIVE IN TAKING THE POSITIONS AND RETAINING THEM OVERNIGHT. IT IS WISE TO PLAY SAFE AND BUY ONLY ONE-THIRD PART OF THE MONEY YOU HAVE. ON THE FLIP SIDE IF NIFTY TRADES BELOW 6172 THEN LIKELY TO COME DOWN 6150 LEVELS AND BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 6120 LEVELS AND THEN TO 6100. ONE HAS TO BE WITH THE TREND AND AT THIS STAGE I WOULD SUGGEST YOU NOT TO CARRY HUGE VOLUMES OVERNIGHT.
BUY SREINFRA SL 116 TGT 118/120/122
BUY XPRO INDIA SL 70.45 TGT 73/75/77
BUY EVERONN SL 696 TGT 715/725/744
BUY VIVIMED LABS SL 309 TGT 320/327/335*
BUY INDIAN HOTELS SL 100 TGT 102.40/103.55/105 (SHORT TERM 120)*
BUY PUNJLLOYD SL 115.40 TGT 117.60/119.30/120.40 (SHORT TERM 140)*
POSITIONAL TRADES
BUY LLOYD STEEL TGT 18.50
